Birmingham property market update – what do you need to know?

As a property seller, it pays to have a good understanding of the local market you are selling in. Knowledge of average house prices in the area, how long homes are typically on the market for and what property types sell the best, for example, can help you to get your home sold more efficiently and for the best possible price.

With this in mind, we narrow in on Birmingham and its thriving property market, as well as the numerous investment opportunities the area has to offer.

The lowdown on Birmingham

Known as England’s second city that won’t stand still, Birmingham has seen significant investment in recent years which has allowed it to blossom into a major business and tourist location.

The city is enriched in history and culture, boasting five universities, the redeveloped Bullring shopping centre and the iconic Jewellery Quarter. It is also home to a large network of canals, a host of museums and industrial revolution landmarks and the award-winning Water’s Edge development at Brindleyplace.

Birmingham is also a haven for foodies, featuring a restaurant scene that embraces all types of cuisine and several Michelin-starred kitchens. Meanwhile, the Jewellery Quarter, which showcases local artwork, musicians and local craft beer, is a popular hangout for the trendy crowd.

The city’s transport links are fantastic, too, with services into London Euston (85 minutes), Manchester Piccadilly (90 minutes) and Liverpool Lime Street (90 minutes), as well as routes to Edinburgh, Leeds and Bristol. Meanwhile, Birmingham’s Midland Metro service runs between New Street and Wolverhampton.

Set to be the testbed for the 5G mobile network rollout and home to the 2022 Commonwealth games, Birmingham continues to thrive as a modern and dynamic city centre that gives London a run for its money.

Property prices are on the up

Birmingham embraces both modern and cosmopolitan living, with a number of city centre developments along the canals and in the traditional Jewellery Quarter. Despite being a city on the up, potential buyers looking to buy here will find that prices are still relatively competitive compared to other major UK cities.

In fact, average prices for property in the city currently stand at just over £200,000 – a rise of 1.48% over the last year, while overall sold prices in are 4% up on the previous year and 17% up on the 2016 level of around £175,000, according to Zoopla estimates.

These increases could be due to the luxury residential developments that have recently sprung up in New Street and Hill Street. Meanwhile, the Rotunda building, next to the Bullring, is also being redeveloped as upmarket living accommodation.

In terms of property types, terraced properties made up the majority of sales in Birmingham during the last year, selling for an average price of £170,000, according to Rightmove. Semi-detached properties, meanwhile, sold for an average of around £200,000, possibly due to the rise in family buyers looking for the perfect mix of a calming ambience with hustle and bustle.

Flats in Birmingham fetched an average of £150,000 – suitable for first-time buyers and young professionals who are being priced out of more expensive areas across the country.

Why invest in Birmingham’s property market?

For those looking to invest in Birmingham, there are numerous investments currently underway, with two standing out as being the main drivers of growth. The first is the Big City Plan, a 20-year masterplan covering every aspect of the city’s built environment which is transforming the city centre. The plan aims to create thousands of new homes, 65,000 square metres of public space, 28 kilometres of enhanced walking and cycling routes and 1.5 million square metres of new floorspace.

The plan is estimated to generate 50,000 new jobs and £2.1 billion for the economy annually. The second major change set in motion is the upcoming HS2 high-speed railway, which will connect the city with London, Manchester, Sheffield and Leeds at reduced journey times and provide a significant economic boost.

The two new stations will see more than £1 billion spent in Birmingham in the coming decades, while making the city even more attractive to businesses and young professionals. A study from Knight Frank also revealed that the city’s economy will grow by more than a quarter in the next decade.

This could lead to rapid population growth, which means Birmingham will be home to 100,000 more households within two decades – equivalent to more than 3,500 new homes a year. In the short term, though, Knight Frank anticipates that house prices will rise by 12.5% by 2022, on top of previous growth of 45% since 2009.

Now is the perfect time to sell in Birmingham

Activity in the market traditionally ramps up in the autumn as children return to school and summer comes to a close. This often leads to a surge in eager buyers pursuing properties as they seek to make their move before Christmas.

As a result, it could be worth listing your home now to ensure you are ahead of your competition and generating plenty of interest ahead of any boost in activity, especially as we are in the midst of Brexit uncertainty.

Of course, an experienced local estate agent who understands the local market will help you to get the best possible asking price for your home and sell quickly in a bustling city like Birmingham. Here at Centrick, we have the experience and expertise to guide you through your selling or letting journey in Birmingham. To find out more about our services, or for any advice on the Midlands property market, get in touch with us today. You can also request a free, instant online valuation to see how much your property could be worth on the current market.