Looking to invest in Birmingham property and want to know where you can achieve the highest returns? Explore the neighbourhoods in the second city offering the best rental yields below!
With a history of exceptional property market growth and a projected 22.2% increase in rental values by 2028, it’s clear why Birmingham rental yields are some of the most attractive in the UK. In fact, Birmingham as a whole boasts impressive average yields: 7% for studios, 6.2% for one-bedroom properties, and 5.4% for two-bedroom properties. This significantly surpasses the national average, which is estimated to be around 4.75%. However, the real opportunities lie in specific districts within Birmingham that offer even better returns. So, where can you find the best rental yield Birmingham has to offer?
Our team at Centrick Invest has identified seven key districts in Birmingham that present a winning combination for property investors: excellent rental yields in Birmingham, promising regeneration prospects, and competitive property prices. Our data, sourced from PropertyData, is accurate as of August 2024.
Jump To: Jewellery Quarter | Edgbaston | City Centre | Selly Oak | Longbridge | Kings Heath | Digbeth
Investing in Birmingham provides a compelling opportunity for property investors seeking strong returns. The city’s unique blend of factors drives exceptional Birmingham rental yield potential.
As the UK’s second-largest city, home to over a million residents, Birmingham is a thriving urban hub in the West Midlands. Its ongoing regeneration initiatives, substantial inward investment, and vibrant cultural scene make it a highly desirable location for both domestic and international buy-to-let investors looking for attractive rental yields.
Furthermore, with a remarkable 60% property price growth between 2014 and 2024, and forecasted increases of 19.9% in property prices and 22.2% in rental growth from 2024 to 2028 (according to JLL), Birmingham stands out as a leading city for sustained property investment success and high rental yields.
For property investors, rental yield is a crucial metric for assessing a property’s profitability. It’s often the first figure considered when evaluating a potential investment – what level of return can be expected? Generally, higher rental yields are more appealing to investors.
The rental yield can fluctuate based on various factors, including location within a city like Birmingham, property size, and prevailing economic conditions. These elements influence the property’s purchase price, its potential rental income, and associated operational expenses. Additionally, the type of property (residential, commercial, or industrial) also affects the rental yield. In this guide, we’ll focus specifically on residential property rental yields in Birmingham, concentrating on properties designed for tenants to live in.
Ultimately, a strong rental yield isn’t just about achieving high returns—it’s also about attracting reliable tenants. Inconsistent tenancies can hurt your overall rental yield by increasing the risk of void periods, where no rent is coming in because the property is unoccupied.
Additionally, choosing a rental property that isn’t overly expensive to maintain is crucial. High maintenance and repair costs can significantly affect your yield. That’s why the team at Centrick Invest is so dedicated to high-quality new build homes and off-plan properties in sought-after locations. These properties are ready for rental upon completion and typically require less frequent maintenance, helping to protect your rental yield.
Looking to invest in UK property with exceptional rental yields? Explore our range of developments across the UK.
The Jewellery Quarter is a prime location for property investors aiming for strong rental yields in Birmingham, set within an area steeped in history and charm. With an average overall rental yield of 6.4%, the Jewellery Quarter offers an attractive investment opportunity, particularly for studio and one-bedroom properties, both boasting a 6.4% yield. With an average property value of £221,000, the area combines affordability with high returns.
The district’s blend of heritage buildings, upscale amenities, and proximity to the city centre makes it a magnet for young professionals, contributing to its strong rental yield. What’s more, the district’s unique character is enhanced by a local train station, tram stop, Michelin-starred restaurant, and vibrant cafes, making it a desirable location for tenants and a smart choice for investors seeking excellent Birmingham rental yields.
Average Overall Yield
Average Property Value
Average Studio Yield
Average One-Bed Yield
Average Two-Bed Yield
New build 1 and 2 bedroom apartments, situated in Birmingham's iconic Jewellery Quarter. Prices from £225,000.
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48 unique homes in the heart of Birmingham’s prestigious Jewellery Quarter.
A unique development of 71 units, designed to preserve the heritage of Birmingham's JQ. Prices from £245,000.
A unique development of just 14 bespoke apartments in one of the UK’s fastest-growing cities. Prices from £295,995.
Edgbaston, an affluent area just west of Birmingham city centre, presents a compelling opportunity for property investors seeking strong rental yields and capital growth potential. With an average rental yield of 6.4%, Edgbaston stands out, especially for one-bedroom properties, which offer an impressive yield of 6.8%. Its mix of flats, apartments, and larger homes makes Edgbaston an ideal investment spot for those looking to tap into a thriving rental market driven by a diverse tenant base.
This leafy suburb, known for its prestigious golf club and renowned cricket stadium, is not only a desirable location for professionals and families but also a prime choice for students at the University of Birmingham, ensuring consistent demand and contributing to its strong rental yields. The proximity to the university, combined with an average property value of £240,000 and excellent transport links, including the upgraded West Midlands Metro tram network, ensures a steady demand for rental properties and attractive rental yields in Birmingham.
Average Rental Yield
Average 1-bed Yield
Average 2-bed Yield
Average 3-bed Yield
Birmingham City Centre, with its modern apartments and vibrant atmosphere, is a top choice for investors looking to capitalize on a thriving urban environment and achieve high rental yields. With an average rental yield of 5.7%, and even higher returns for studio (7.9%) and 1-bedroom (6.4%) apartments, the area offers exceptional value for money with an average property value of £218,000. The city centre’s unparalleled connectivity, with three major train stations and a growing tram network, ensures easy access, attracting a wide range of tenants and supporting strong rental yields in Birmingham.
Moreover, the city centre is home to major corporations, making it a magnet for young professionals and couples, ensuring steady rental demand and contributing to attractive rental yields. Birmingham’s appeal is further enhanced by its bustling entertainment and shopping hubs, alongside vibrant nightlife and diverse cultural quarters, making the city core a popular location for tenants and investors alike.
Discover what makes Birmingham property investment such a fantastic voice for buy-to-let landlords.
Selly Oak stands out as a prime location for property investors seeking impressive rental yields in Birmingham, driven by consistent demand for student housing. With an average rental yield of 6.2%, Selly Oak provides a lucrative opportunity, particularly given the area’s focus on houses and HMOs catering to the substantial student population from Birmingham City University and the University of Birmingham. The area’s average property value of £357,000 may be higher than some other regions, but Selly Oak still offers solid returns, with yields ranging from 5.1% for two-bedroom homes to 5.3% for three-bedroom properties.
Beyond its appeal to students, Selly Oak attracts families seeking local greenery, well-connected transport links, and proximity to the city centre, making it a desirable commuter haven and contributing to its attractive rental yield. The area’s vibrant local culture, with shops, pubs, cafés, and bars, adds to its appeal, ensuring steady demand and offering landlords a reliable and profitable investment opportunity.
Average 4-bed Yield
Longbridge presents a golden opportunity for property investors seeking strong rental yields and future capital appreciation. This charming commuter haven, nestled near the Lickey Hills, offers tenants a village-like atmosphere while being just a 20-minute train ride from Birmingham’s city core, with frequent direct train services. With average rental yields of 4.8%, and even higher returns for 2-bed (5.3%) and 3-bed (5.2%) properties, Longbridge stands out as a lucrative investment option with promising rental yields in Birmingham. The area has attracted significant public and private investment in recent years, fueling its transformation and creating numerous new jobs. As Longbridge continues to develop and gain recognition, property investors can anticipate substantial capital appreciation, making it a hidden gem in the Birmingham region.
A striking collection of modern apartments located in Longbridge, Birmingham. Prices from £187,500.
Kings Heath, located just five miles south of Birmingham’s city centre, presents a lucrative opportunity for property investors, offering an average rental yield of 4.9%. This vibrant suburb is highly sought after by families and young professionals, drawn by its eclectic high street, renowned independent eateries, and proximity to the city. Notably, Kings Heath offers strong rental yields across different property types, with 1-bedroom properties achieving an impressive 7.3% yield, 2-bedrooms at 5.6%, and 3-bedrooms at 5%. The area’s appeal is further enhanced by its excellent schools, including the prestigious King Edward VI Camp Hill Schools, and its beautiful green spaces like Kings Heath Park and Highbury Park, making it a perfect blend of urban convenience and suburban tranquility. For investors seeking a reliable return on investment, Kings Heath’s growing popularity and robust rental market make it an ideal choice.
A stylish trio of townhouses located in the heart of the vibrant suburb of Kings Heath. Prices from £435,000.
Digbeth is rapidly becoming one of Birmingham’s most exciting investment hotspots, offering compelling rental yields and significant growth potential. With an average rental yield of 6.2% and property values around £221,000, Digbeth presents an attractive proposition for property investors seeking strong returns and reasonable property prices. The area’s rejuvenation, driven by substantial investment and the ongoing Smithfield Masterplan, has transformed this former industrial neighborhood into Birmingham’s vibrant creative quarter. Digbeth’s appeal is further enhanced by its proximity to the city centre and the upcoming HS2 station at Curzon Street, which is set to boost the local economy and increase demand for rental properties. As 8,000 jobs and 3,000 new homes are created, Digbeth is poised for impressive capital growth, making it an ideal location for investors looking to capitalise on Birmingham’s dynamic property market.
Birmingham stands out as an excellent choice for your next investment property, offering strong rental yields and ongoing developments that are likely to boost demand and enhance capital appreciation. Whether you’re an experienced investor looking to expand your portfolio or new to property investment, Birmingham presents promising opportunities for rental property investment.
Contact Centrick Invest today to explore the best rental yields Birmingham has to offer and take the first step towards a profitable investment.
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Looking for your next property investment with exceptional yields? Explore our range of high-yield developments across Birmingham's best neighbourhoods...
Here at Centrick Invest, we are passionate about sourcing exceptional properties across cities and suburbs across the UK to present to our investors. Our team are proud to sell units at a range of developments across England - from swanky studio apartments in the Jewellery Quarter, to luxury apartments in the heart of Manchester, to glorious new-build family homes nestled in suburbia.
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