Birmingham is regarded as the "second city" in the UK but it is currently in pole position when it comes to the lettings market.
UK finance statistics * reveal that there has been a 40% drop overall in buy to let mortgages since 2015, a proportion of which is likely down to regulatory and tax changes. Of course, investors continue to purchase properties and whilst London appears to be a region where property purchase is on the downward trajectory, landlords in the Midlands seem to be bucking the trend.
This boost in tenant and landlord demand in the West Midlands can be attributed to strong economic growth, which is bringing the likes of some of the UK's biggest financial firms such as HSBC and Deutsche Bank to relocate their head offices from the capital to Birmingham prior to the Birmingham 2022 Commonwealth Games.
According to Letting Agent Today, more than 4/10 landlords in the East Midlands along with 1/3 of landlords in the West Midlands say "tenant demand is increasing" compared with a little under a quarter of all UK landlords indicating rising demand for their housing stock.
With rental yields of 62%, the West Midlands are reporting strong growth. In comparison, 16% of investors in Central London said they "had sold some property in the last quarter", perhaps to reinvest in this profitable region?!
For more information about renting your property or for a conversation about developing a buy to let portfolio, please contact our Lettings department on 0121 445 410
*analysed by Paragon Mortgages