Why Invest In The West Midlands?

The West Midlands is fast evolving as one of the UK’s premier property investment destinations. With a combination of strong property price growth, excellent connectivity, high demand for rental properties, and diverse opportunities for investors, this vibrant region offers a host of compelling reasons to make it a focal point of your portfolio. Whether you’re just starting out on your property journey or adding to your empire, here’s the data behind why investors are choosing the West Midlands today.

Property Price Growth

When it comes to property price growth, the West Midlands leads the pack. According to Savills, property prices in the region are projected to grow by 23.4% between 2024 and 2028, outstripping the UK’s average growth rate of 21.6%. Despite this, the average property in the West Midlands is valued at £242,000 according to the House Price Index, which is remarkably cheaper than the average property in England which sits at a value of £306,000 as of November 2024. 

Rental growth is equally impressive. Zoopla reports a 5.5% annual rental price growth as of October 2024, significantly 25% higher than the UK average of 3.9%. Despite this, rental values remain reasonable, with average rents at £946 per calendar month—a stark contrast to London’s nearly £2,200pcm.

This blend of rapid growth and affordability makes the West Midlands an appealing option for both renters and investors. Renters benefit from more reasonable living costs, while investors can capitalise on increasing yields.

HS2 and Transformative Infrastructure

One of the West Midlands’ biggest draws is its strategic location at the heart of the UK. Within a four-hour drive of 90% of the UK population, its accessibility is unrivalled—and it’s only getting better as the HS2 project nears completion.

Once complete, HS2 will link Birmingham to London in less than 50 minutes, making the region even more appealing to commuters and businesses. What’s more, as HS2 expands beyond its first phase, more regions of the UK will be in touching distance of the West Midlands, making the region more appealing for commuters in different cities searching for a less expensive place to call home. With plans to link cities such as Crewe, Manchester and Leeds to the initial London-Birmingham line, the future certainly looks bright for the West Midlands.

The ripple effect of HS2 extends beyond transportation. Contracts worth £816 million were awarded to local businesses in 2022, and Birmingham City Council has pledged £724 million through the Curzon Investment Plan. This ambitious regeneration scheme will create new neighbourhoods, 4,000 homes, and 36,000 jobs over three decades, further solidifying Birmingham’s status as a powerhouse in the UK property market. Not only will this boost demand for West Midlands property, but rental values will likely see a boost due to the amount of competition in the market.

Unmet Demand

The West Midlands presents a robust rental market driven by high demand and a limited supply of new homes. Since 2021, the region has permitted fewer than 20,000 new homes annually, which is at least 18,000 units below the estimated yearly need. This supply-demand imbalance ensures that rental properties are highly sought after, with most snapped up quickly, driving rent growth and minimising void periods for property investors.

What’s more, the region’s demographic profile is ideal for property investors. 32.3% of residents are under 25, compared to the UK average of 29.8%. This age group typically rents rather than buys, creating a steady and growing pool of potential tenants. This is boosted by the West Midlands’ broad range of educational institutions which attract young talent – and potential renters – from far and wide. In fact, approximately 183,000 students were enrolled in West Midlands universities over the 2022 to 2023 academic year, making student property investment a strong option for investors.

A Region of Diverse Opportunities

The West Midlands isn’t just one market—it’s a collection of diverse opportunities catering to a range of investment strategies.

• Birmingham: The UK’s second city is a hub of culture, commerce, and connectivity. It’s perfect for investors seeking high-demand properties with strong rental yields.
  • City Centre properties generate yields of 5.7% and with an average property value of £218,000, make fantastic first-time investments.
  • Digbeth, Birmingham’s newly revived creative quarter, produces yields of 6.2% and with the pending completion of HS2 on the horizon we anticipate capital appreciation here will be particularly impressive.
  • Jewellery Quarter properties have an average rental yield of 6.4% and cater well to working professionals and couples looking for high-end, characterful flats and apartments in Birmingham’s historic quarter.
  • Edgbaston’s rural appeal means that properties in this green haven generate yields of 6.4% and appeal best to families.
  • Selly Oak remains an exciting hub for students, producing average yields of 6.2% thanks to consistent high demand.
• Rural Investments: The West Midlands also boasts vast green spaces, providing opportunities to invest in land or countryside properties that appeal to retirees or those seeking a quieter lifestyle.

Whatever your investment goals, the West Midlands has a property type and location to match.

Should I Invest in the West Midlands?

The West Midlands is one of the best UK property investment locations for experienced and budding investors alike, and offers a rare combination of affordability, growth, and opportunity. With above-average property price and rental growth, transformative infrastructure projects like HS2, and a competitive yet underserved rental market, it’s a region with immense potential.

Centrick Invest is here to help you capitalise on these opportunities. Our expert team specialises in sourcing high-performing properties across the West Midlands and beyond, ensuring you can make confident, informed investment decisions.

Start your journey to property investment success today. Contact Centrick Invest using the form below and discover how you can make the most of the thriving West Midlands property market.