Build-to-rent thriving in Birmingham as investors turn backs on London
Birmingham is one of the top destinations in the country for people leaving London, and more investors are now looking to the city for the next build-to-rent opportunities.
More people than ever are migrating out of the capital according to statistics, with high house prices and renting costs being blamed for much of the exodus, as well as the vastly improving job markets and opportunities in other cities – and it seems that Birmingham is a new magnet for ex-Londoners.
According to the Resolution Foundation, net outward migration from the capital reached 106,608 in the year to June 2017, with 229,405 people moving into London compared to 336,013 who left – an increase of 14% on the previous year’s figures.
People in their early 30s are the most likely to leave the city, meaning thousands of young professionals are now looking for new homes elsewhere in the country. With fewer of the age group now owning homes, the rental market in Birmingham has seen increased demand, particularly in the build-to-rent sector.
Young professionals used to city living are being drawn to build-to-rent by the long-term, flexible tenancies often available in these developments, as well as the added amenities and the higher quality, centrally located living standards that tend to come hand-in-hand with the sector.
Why Birmingham attracts young professionals and investors
According to Johnny Caddick, managing director at Moda which is creating rental apartments in Birmingham, the city’s economy is set to grow as it continues to attract and retain talent from elsewhere in the country – providing a further impetus for investors looking for an up-and-coming area in which to invest.
“It’s not surprising that record numbers of people are moving to Birmingham,” said Caddick. “It’s now a global city with the amenities and international connections consumers and businesses demand. Investment around HS2 and the commitment from firms like HSBC has underscored investor confidence in Birmingham and this is why investors are piling in.”
“Build-to-rent is well suited to the city as it supports high density development and recognises that many workers value the time saving and hassle-free way of life companies like Moda plan to offer.”
Build-to-rent can be a great investment choice for hands-off landlords as all units are specifically designed with tenants in mind, with all the property management taken care of. To find out more about some of BuyAssociation’s investment opportunities in Birmingham, see our investments page.
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