Property Prices Soaring in Pockets of Birmingham
There are areas within Birmingham where property prices are continuing to soar at a much higher rate than the country average. Ladywood in Birmingham is one such area and is currently the fastest appreciating area in the UK even exceeding London growth rates. In Ladywood, the average house price has risen from £147,121 to £172,498 marking an increase of 17% in just 1 year.
The growth in property prices in Birmingham has far outperformed other cities that have witnessed price increases such as Manchester, Leicester and Coventry.
What has caused this level of growth in Birmingham?
Other areas in Birmingham are also experiencing above average property growth for this time of the year. This could be due to a number of factors including but not limited to:
- Investor influx from cities further south where prices have become unaffordable especially for those taking their first step onto the property ladder.
- Birmingham’s forthcoming HS2 high speed link which will make commuting to other cities much quicker than it currently is. Journey times between London and Birmingham from 1hr 21 min to 49min.
- New developments appearing up all over the city including for example the £350m super-hospital which will be complete by the spring of 2019.
So why does Birmingham remain a good place to buy property?
Birmingham remains a good place for not just owner occupiers but for investors too. Over the previous 12 months, property investors have enjoyed great returns on their Birmingham properties. Rental values have held well and there is plenty of tenant demand.
Despite recent tax changes, investors and landlords are still buying property to enhance their current portfolios. Rent increases expected in the next 3-5 years will further encourage existing landlords to increase their portfolios and new investors to invest in property.
Looking ahead, higher employment rates, growth in the private housing market and an increase in average earnings could help inflate property prices further.
Birmingham is not only the UK’s second city, but it has also offered attractive growth for several years now. Demand continues to remain high in Birmingham. Coupled with limited property stock and the growing popularity of the city, the city definitely has a bright future.
If you have any property to sell or are looking to buy property in Birmingham, please get in touch with Robert Oulsnam and Company. We’re an award-winning Estate Agent having won a total of 16 awards in 2017 and can help you to sell or rent your existing properties with ease.