Birminghams April Lettings Market Update

Birmingham Property Market Update

In April’s market overview, we compare rental prices & void periods from Goodlord & Homelet data comparing Birmingham City Centre with the West Midlands and the national average along with a snapshot of the mortgage world.

Rental Prices vs Void Periods

• Rental Prices: Birmingham’s average rental price of £1,050 per month outpaces the West Midlands average, which sits around £800 to £900 per month. However, it remains competitive compared to the UK national average of approximately £1,200 per month, positioning Birmingham as an attractive option for both investors and renters seeking value for money.
• Void Periods: Birmingham’s relatively low void periods of 18 days reflect a healthy rental market, outperforming both the West Midlands and UK national averages. The West Midlands average void period is 21 days, while the UK
   

Comparing both figures, we’ve noticed a consistent trend, further corroborating the stability of Birmingham’s rental market. While specific figures may vary slightly between providers, the figures show a strong property market within the City Centre.

Headline Mortgage Rates for Buy-to-Let & Limited Company Mortgages

For Landlords considering investing into Birmingham’s property market, it’s essential to stay informed about the prevailing mortgage rates. Currently, buy-to-let mortgage rates stand at around 3.5% to 4% offered by major lenders such as Barclays, NatWest, and Santander, offering competitive financing options for those looking to invest.

Limited company mortgages, increasingly popular among investors seeking tax efficiency and asset protection, are also available at attractive rates, typically ranging from 3.2% to 3.8% provided by specialist lenders like Paragon Bank and Aldermore. These rates may fluctuate slightly based on individual circumstances and lender criteria.

Average House Prices & Yields

The average house price in Birmingham stands at approximately £220,000, offering affordability and value for money compared to the wider West Midlands region, where prices average around £200,000. When compared to the UK national average house price of approximately £250,000, Birmingham presents an attractive option for homebuyers and investors alike.

For buy-to-let investors, Birmingham offers competitive yields, with average returns ranging from around 5% to 7% depending on the property type, location, and rental demand. With rental demand expected to remain strong in the coming years, Birmingham’s buy-to-let market presents a compelling opportunity for investors showing stable returns and long-term growth potential.

More Information

If you have any questions regarding this update or would like more information, then please reach out on 0121 296 2600.

Disclaimer:
All data and statistics provided are based on the latest available information online and may be subject to change. Individual circumstances and market conditions may vary, and professional advice is recommended before making any investment decisions.