Birmingham has one of the UK’s largest economies, as well as a fast-growing population and a strong pipeline of new development.
With recent regeneration schemes seeing new bars and restaurants popping up, and housing developments contributing to a boost in the city’s property market, the annual growth rate for residential values is between 5% to 10% since mid 2015, according to the Office for National Statistics.
The strong growth in prices seen over the past few years has contributed to a 45% rise in average residential property values since the post-crisis trough in mid 2009.
However, the average house price is still well below the UK average, with the median Birmingham property currently worth £178,000.
This means that one of the key drivers of the success of the Birmingham property market is that it’s relatively affordable in comparison to other areas of the UK, especially regions further South, including Greater London.
In comparison to London, Birmingham is the UK’s second biggest business hub, meaning it’s a sought-after location for working professionals and families.
What does it look like for the future of Birmingham?
Birmingham’s economic expansion looks set to continue, and looks to outperform the wider West Midlands during the next decade. Birmingham’s gross value added (GVA), a measure of the value of goods and services produced in an area, is set to climb 25.5% by 2028, faster than all other local authorities in the region.
The number of people living in Birmingham will rise by 171,000 to 1.3 million by 2039, according to the latest official population projections. This translates into nearly 100,000 additional households being created over the next two decades or so.
Developments in the pipeline
Housing delivery data suggests that there is an imbalance between the supply of new homes, and the demand for additional housing. Some 1,751 net additional dwellings were delivered in 2016-2017, down from 2,839 the previous year.
Birmingham needs an additional 3,577 additional dwellings every year until 2026 in order to meet demand and clear the backlog, according to official estimates.
In terms of housing that’s already planned, it looks like around 9,700 private residential units are in the development pipeline – either under construction or with planning granted, according to data from construction intelligence provider Glenigan.