Off-plan Property in Central Birmingham is a Top Choice for High Net Worths
By Donna Smith, Sales Director, Wavensmere Homes
The appetite for investors to buy property in Birmingham is more resilient than ever. With the abolishment of mandatory housing targets, there is a scarcity of new homes coming onto the market and the opportunities to invest in an energy efficient apartment or house are limited. Meanwhile, the rocketing demand for city living has seen rental values rise to unprecedented levels.
Apartments that are on the market at Belgrave Village in central Birmingham for £210,000 have a projected rental income of up to £1,100pcm, representing a yield of 6.3%. This is on a par with stock market returns and yet the risk profile could not be more different. As Birmingham is the second city within the sixth-largest national economy of the world, the lucrative returns – and financial security of investing in bricks and mortar – are attracting high net worth individuals from as far a field as Shanghai.
Birmingham is so much bigger than any one company, industry, sector, landmark, event, or headline. The city has a population of 1.15m and a thriving youthful workforce. Birmingham has never shone brighter than it did during the 2022 Commonwealth Games, but that spotlight hasn’t dimmed. The career opportunities, connectivity, and lifestyle benefits, continue to attract people to relocate here from across the UK and overseas.
Following the demise of Help to Buy, would be first time buyers are renting for longer. The rental market across the city is strong, but as the cost of leasing an apartment in Birmingham is a fraction of the comparable cost in London and the South East, there is a distinct flight to quality. Premium schemes with a strong eco and community focus that have been constructed to post-Grenfell Tower Building Regulations are attracting the savviest tenants.
With close to 1,000 properties currently under construction, Wavensmere Homes has fine-tuned what occupiers want. This ensures our buy to let purchasers secure residents who want to make a medium to long-term commitment to live in a high-quality place they can call home. Belgrave Village features 438 houses and apartments. All residents will have access to a gym, co-working space, screening room, concierge service, and swathes of landscaped public open space. As this highly appealing development is privately owned – and free of investment management overheads – it offers value for money for purchasers and tenants alike.
The £103m landmark scheme was launched in mid-2022 and 115 homes were reserved on the first day – all to individual buyers. These sales have legally exchanged, and the first tranche of houses and apartments will be ready to move into later this year. Air source heat pumps, natural ventilation, low energy appliances, and EV car charging points, will enable residents to lower their carbon footprint and household bills.
While the rents at Belgrave Village are on a par with the Jewellery Quarter and other parts of central Birmingham, being positioned outside the Low Emissions zone affords the luxury of 12 acres of linear parks, open spaces, and a good allocation of parking. All 174 two-, three- and four-bedroom houses at the scheme are sold with a parking space, while there is also the opportunity to purchase parking with the 238 one- and two-bedroom apartments.
For local journeys into the city’s business, shopping, and cultural quarters, cycling and E-scooters that are readily available for hire are the preferred methods of transport for most residents, although bus stops are positioned close to the new development. The design of Belgrave Village and mix of apartment and house types will enable occupiers to care for a small pet, which we know is such a major draw for so many people.
The Bank of England’s recent Interest Rate rises have taken a degree of urgency out of the buying process, but this is not having an impact on enquiries from those keen to buy off-plan at Belgrave Village. Mortgage lenders are already coming forward with more favourable rates and a greater choice of products than were available in late 2022.
Attracting investors from outside this region and overseas will never be bad for our business, or indeed for Birmingham – quite the opposite. However, I would urge people from the West Midlands not to rest on their laurels and risk missing out. A buy to let purchase is an incredible investment to supplement your income and generate long-term financial security.