The Birmingham Property Market

. by James Laurence Estate Agents

Reading time: 3 Minutes

Birmingham and the surrounding area has been a popular target for investors for some time, and we’re excited to be part of such a buoyant market. Our excellent transport links, diverse, vibrant community, and burgeoning economy are just some of the reasons Birmingham is such an attractive place to invest. It’s also home to the largest private rental sector in the country outside London and, according to recent property reports, prices rose faster in Birmingham over the past year than anywhere else across the UK.

 

While prices have flattened briefly in 2021, it looks as though that upward trend is set to continue, with research indicating that Birmingham will continue to be at the forefront of property price and rental growth over the next few years. However, even though property prices have increased by just over 13% over the past twelve months, Birmingham still remains an affordable place to buy, with the average price for a home, £265K, still lower than the average property price across England and Wales of £339K. The upcoming Commonwealth Games has also boosted the market, with the proposed re-generation of the northwest of the city set to deliver 5,000 new homes over the next few years, including the athletes village. Infrastructure in the area will also be improved, making it a good prospect when it comes to investment. 

 

The rental market is on the rise, too. Birmingham, as the country’s second-largest business hub, attracts graduates and young professionals from across the country, many of whom are yet to get on the property ladder. Combine that with the fact that 60% of the population are under 35, and you have a burgeoning rental market. Rentals rose by 3% in the last year alone, and that’s a trend that’s set to continue as demand outstrips supply, making Birmingham an excellent prospect for investors.

 

However, despite the higher than average price rise across Birmingham overall, it is definitely a bit of a postcode lottery, with some areas seeing growth while others have fallen back. For example, properties in the Brown’s Green, Handsworth Wood, and Birchfield areas have seen an astonishing 35% price rise over the last year or so while, at the other end of the spectrum, Marston Green, Kingshurst, Bacon’s End, Fordbridge, Chelmsley Wood and Solihull have all seen prices drop, on average, by 10%.

 

There are other factors at play as well, of course. The pandemic has had an effect on the economy worldwide, yet the UK housing market has been surprisingly resilient. The stamp duty holiday helped many buyers get into their first properties, as have low interest rates. And, with so many of us stuck at home, it’s given us the chance to consider what it is we really want when it comes to living accommodation, leading to the so-called ‘Covid bounce’. All this adds up to a property market that continues to rise across the UK, and Birmingham is at the forefront.

 

So, what does that mean for you as a buyer? Even though Birmingham City Council is working to address the current shortage of housing stock through construction, redevelopment and private sale opportunities, more people want to buy homes than are currently available, driving prices higher and meaning that it really is a seller’s market. That’s great news if you already own a home and are looking to move on (although remember, you will be buying back into the same market, so any gains made will more than likely be used when purchasing your next property). But if you’re still looking to get your foot on the housing ladder, it definitely makes it more difficult to do so, as price surges outpace savings. However, first time buyers can have an advantage in a fast-moving market, especially if they have their financing in place, as they have no chain.

 

Overall, we think that Birmingham is a fantastic place to buy a property, whether to live in or as an investment. Despite the growth of the past five years, it’s still one of the more affordable markets in the UK. However, forecasts indicate that prices will continue to rise so, if you are looking to invest, the time really is now. Remember, the real estate market is like the ocean, always changing. The trick is to know how to ride the waves. So do your research, get your finances in order, and speak to your agent about the best areas in which to buy. With our local knowledge, we’re well placed to help you make a wise decision when it comes to making one of the biggest investments of your life.

 

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  • 5 star review  We recently switched from another letting agency to James Laurence, as we found their team so warm and friendly and loved the local aspect of the agency. The team have absolutely exceeded our expectations, making the changeover feel so seamless and finding new tenants for our apartment at really short notice. Lotti could not have been more wonderful to work with, going completely above and beyond to ensure our tenants could move in just before Christmas. We felt an immediate affinity with her and have so appreciated her attention to detail, quick thinking and creativity. She has made us feel so at ease, supported and like our property is in the safest of hands. Charlotte and Melissa have also been so helpful and lovely to deal with during the process. Having worked with several other agencies in Birmingham, I cannot recommend James Laurence highly enough. Look no further, they are the best!

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  • 5 star review  The team at James Laurence was very helpful when I tried to find an apartment in Birmingham. I was in contact with a different letting agency but things fell through and they couldn't help me. A colleague of mine recommended James Laurence Lettings so I emailed them immediately since I was was moving from Sweden and the move would take place in less than a week. The team at James Laurence responded within 5 minutes and managed to offer me a few different apartment-options. Things proceeded quickly and smoothly and just a few days later I had they keys to the apartment. James Laurence helped me every step of the way and went above and beyond to accommodate my requests. The only minor negative thing I can say is that the interntal communication could be improved a tiny bit. I received slightly different information depending on who I was speaking with at the time. When I said I received different information earlier the person I spoke to said she would talk to her colleagues and then get in contact with me later with the "correct" information which she did and the issue got solved very quick.

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  • 5 star review  Our experience with James Laurence Estate Agents was absolutely fantastic! Melissa Wilson made the application and referencing process smooth and easy with excellent communication. Everyone we spoke with from the office was kind, helpful, and welcoming. To top it all off, the loft we moved into was even better than the pictures! We are thrilled with our new home and we would absolutely recommend James Laurence to anyone looking for a place to live!

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  • 5 star review  I have been very impressed with James Laurence, who have recently sold my property. Having previously had a poor experience with Purple Bricks, I instructed James Laurence to help sell my property. I have worked with Henry throughout the whole process and have found him to be very professional and knowledgeable as well as being efficient. It can't be stressed enough how important this is to have an estate agent that responds quickly, negotiates well and truly understands the market (especially during uncertain times like recently with the cover pandemic). I have briefly worked with Caroline and some of the other team members who also seem to be very efficient and friendly. Thanks again to James Laurence who I would fully recommend to anyone looking to Buy/Sell in Birmingham.

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  • 5 star review  I recently sold my property with James Laurence, and the overall experience was great. They demonstrated a good knowledge of the Birmingham property market when discussing sales strategy, marketing and pricing (more than I was expecting) towards the beginning of my experience with them. This showed when we achieved 2 asking price offers within the first couple days of showings. Once an offer was accepted, their support did not stop there, Caroline (Sales Progression) did a fantastic job at liaising between myself and the buyers side, helping to progress items and remove any potential blockers. I would fully recommend James Laurence to anyone looking to Buy/Sell in Birmingham.

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