1. First stop on HS2

Birmingham will be the first stop on the much anticipated Hi-Speed Rail network. This 132 mile journey will be slashed to around 40 minutes. For the first time ever, making it possible to commute from Birmingham to London or vice versa. Connecting the 2 largest cities in the UK.

In addition to this connection to London, it will also connect Birmingham to Manchester, Glasgow, Preston and many other northern locations.

2. Additional economic effects of HS2

Birmingham is arguably the centre of the HS2 project, meaning it could benefit the most. Ultimately it will connect population centre’s totaling 30 million people. Creating 500,000 extra jobs and 90,000 homes around HS2 stations.

It is forecasted to serve 300,000 passengers a day, which other than creating huge business for the network itself, will open tourists and day visitors from all areas of mainland UK.

The original railways built in the UK by the Victorians put the British empire as the most powerful nation on earth, whilst this won’t be to that extent, it does show the historic effect a rail network can have on an economy.

3. Regeneration

Many Cities outside of London are undergoing regeneration and Birmingham is no exception. The reason for this is largely political with London for decades seeing the majority of Business for the UK and other cities suffering for decades.

The city centre is undergoing a 20-year master-plan which is to see £8, billion in initial investments and will continue to be regenerated over the next 20 years. 

In addition to the city centre masterplan Birmingham is seeing other developments such as Goldman Sachs new headquarters, The Snow Hill Masterplan (£50 million to overhaul Snow Hill station and immediate area) and The Birmingham Airport expansion to increase by 6 million + customers a year to 18 million.

4. Rental inflation on the up

We could just state that Birmingham continues to see demand for property, which is true but more specifically it is seeing large increases in rental demand leading to increase in rental value.

Reportedly up 16% up since 2014. More recently it jumped from 1.2% in 2020 to 7.5% in 2021. This is increasing the yields that Landlords are achieving. With the HS2 arriving soon we will expect to see this continue to rise as Birmingham becomes a major location for young professionals.

5. Student population

Birmingham has the 2^nd largest student population in the UK. Though it is the 2^nd largest city so this would be expected. Overall, it is home to around 80,000 students. This obviously makes PBSA investments a consideration.

However, Birmingham University has published several studies the effect its university alone has had on the local economy. With 12,000 jobs created in the last 10 years, UK’s number one region for manufacturing technology jobs, accounting for 60% of the country’s exports, £3.5 Billion to UKs overall economy from Birmingham University and 1 in 50 jobs are reliant on this one University alone.

6. 24% growth Projected

Savills report from 2021-2025 a 24% growth in property, one of the highest in the country.

JLL in Birmingham, said: "Birmingham is on track for a huge house price boom over the next five years, thanks in no small part to the Commonwealth Games which will result in the construction of 5,000 new homes by 2040 and a global spotlight on the city”

In Birmingham, house prices rose by around £17,000 on average in the year leading to April 2022.

7. UKs Second largest city

Birmingham is the UKs 2^nd largest city behind London. With a population of 1.149 million it is a major city. Nothing has ever compared to London in sheer size and economic power; however, Birmingham is the largest of the rest being the only other City with a population over 1 million. This size comes with additional levels of security offered by large diverse populations. In addition, property can be found cheaper and at better yields than London property.

8. Shopping

The retail sector of any location brings a lot of benefits and even tourists to an area, and Birmingham is famous for it. The jewelry quarter as its names suggest is the home of bling. The Bullring offering all the world’s major brands. The Mailbox is a showcase of the world’s most luxurious brands. And finally, its offering of vintage and independent shops is among the best in the UK.

9. Attracting young generation

With its shopping, connection to London and the North, Universities and future regeneration, Birmingham is attracting a new younger generation. Younger populations can help to secure the future growth of a city. With one of the youngest populations, 46% are aged under 30 years old.

10. Geographical location

The location of an area has also been a primary factor in its success. Birmingham is bang in the middle of all the major cities being equal parts from London to the 4 major cities of the north (Manchester, Liverpool, Sheffield, Leeds).

This makes it a real central hub for all areas of the UK, with transport networks (road and rail) all crossing Birmingham.