Looking to invest in Birmingham but don't know where to start? Explore the neighbourhoods in the second city with the best rental yields below!
With exceptional historic growth across the property market and a projected 22.2% boost to rental values by 2028, it is no wonder that Birmingham rental yields are among the best in the country. In fact, Birmingham as a region commands average yields of 7% for studios, 6.2% for one-bed properties, and 5.4% for two-bed properties, which is far more than the national average yield which is believed to sit at around 4.75%. However, specific regions of Birmingham have even better yields than the city average – so, what are the best Birmingham rental yields?
We’ve pinpointed seven districts of Birmingham that offer a fantastic combination of excellent yields, promising regeneration and competitive property prices that are sure to win over new and existing Birmingham property investors. All of our data is pulled from PropertyData and is accurate as of August 2024.
Jump To: Jewellery Quarter | Edgbaston | City Centre | Selly Oak | Longbridge | Kings Heath | Digbeth
Investing in Birmingham offers a compelling opportunity for property investors, as the city combines key factors that drive strong returns. As the UK’s second-largest city with over a million residents, Birmingham is a thriving urban centre in the West Midlands, offering exceptional rental yields, robust capital growth, and promising future projections. The city’s ongoing redevelopment, significant inward investment, and vibrant cultural scene make it an attractive destination for both domestic and international buy-to-let investors. What’s more, with 60% property price growth from 2014 to 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 prime location for sustained property investment success.
Rental yield is key for investors assessing a property’s profitability. It’s often one of the first metrics considered when evaluating an investment property—how much ‘profit’ or yield can be expected from it? Generally, higher yields are more appealing to investors.
Yield can vary depending on factors such as location, city, property size, and economic conditions. These variables affect the cost of the property, its rental income potential, and operational expenses. Additionally, the type of property—whether residential, commercial, or industrial—also influences yield. In this article, we’ll focus specifically on residential property yields, concentrating on properties where tenants can live.
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 seeking strong rental yields in an area rich with history and charm. Offering an average overall yield of 6.4%, the Jewellery Quarter presents an attractive investment opportunity, particularly for studio and one-bedroom properties, both of which also boast 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, upmarket amenities, and proximity to the city centre make it a magnet for young professionals. Its unique character is complemented by a local train station, tram stop, Michelin-starred restaurant, and artsy cafes, making it a vibrant and desirable location for tenants and a smart choice for investors.
Average Overall Yield
Average Property Value
Average Studio Yield
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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 upscale area just west of Birmingham city centre, offers a compelling opportunity for property investors with its strong rental yields and capital growth potential. With an average rental yield of 6.4%, Edgbaston stands out, particularly for one-bedroom properties, which offer an impressive yield of 6.8%. With its mix of flats, apartments, and large-scale homes, Edgbaston is an ideal investment spot for those looking to tap into the thriving rental market fueled by a diverse tenant base. This leafy suburb, known for its prestigious golf club and famous cricket stadium, is not only a desirable location for professionals and families but also a prime choice for students studying at the University of Birmingham. The proximity to the university, combined with an average property value of £240,000 and excellent transport links—including the recently upgraded West Midlands Metro tram network—ensures a steady demand for rental properties.
Average Rental Yield
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Average 3-bed Yield
With its modern apartments and dynamic atmosphere, Birmingham City Centre is a top choice for investors looking to capitalise on a thriving urban environment. 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—New Street, Moor Street, and Snow Hill—and a growing tram network, ensures easy access to the rest of the UK. What’s more, the city centre is home to major corporations like the BBC, PwC, and Deutsche Bank, making the area a magnet for young professionals and couples, ensuring steady rental demand. Birmingham’s appeal is further enhanced by its bustling entertainment and shopping hubs like The Mailbox, Grand Central, and the Bullring, alongside vibrant nightlife and diverse cultural quarters from the Gay Village to Chinatown, making the city core a popular location for searching tenants.
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, offering impressive rental yields and a consistent demand for student housing. With an average rental yield of 6.2%, Selly Oak provides a lucrative opportunity for investors, especially given the area’s focus on houses and HMOs catering to the sizable student population from Birmingham City University and the University of Birmingham. The area’s average property value of £357,000 may be higher than the other regions in this list, but Selly Oak stil 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 who are searching for local greenery, well-connected transport links, and the district’s brief distance from the city centre, making it a desirable commuter haven. 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 direct trains running four times an hour. 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. The area has attracted over £700 million in public and private investment in recent years, fueling its transformation and creating 10,000 new jobs. As Longbridge gains more attention and development, property investors can expect 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.
A stunning development of 194 apartments at the heart of Birmingham's creative quarter. Prices from £160,000.
For property investment, targeting areas with high rental yields is key to achieving the outstanding returns you’re aiming for. Birmingham is 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 seeking to expand your portfolio or a newcomer to property investment, Birmingham presents promising opportunities for rental property investment.
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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