Birmingham has one of the UK’s largest economies, a fast-growing population and a strong pipeline of new development. Bars and restaurants are popping up, while recent regeneration is underpinning a bright outlook for the one of the UK’s powerhouse cities.
Large-scale regeneration and development has contributed to outperformance in the city’s property market, with the annual growth rate for residential values averaging between 5% and 10% since mid-2015, according to data from the ONS.
The strong growth rate in prices seen in the past few years has contributed to a 45% rise in average residential property values since the post-crisis trough in 2009.
Even with this level of growth, the average price in Birmingham is around £178,000, notably lower than the UK average.
This price differential underlines just one of the key drivers of the Birmingham market – its relative affordability compared to other areas of the UK, especially those in the south of England. As the UK’s second-biggest business hub, Birmingham draws comparison with London, the financial centre of Europe.
However, when looking at residential property prices, the difference is striking, with new build development prices in some central zones of the capital ranging from £1,000 to £2,000+ per sq ft, compared to around £300 to £450 per sq ft in central Birmingham.