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Birmingham – What to look for in houses for sale?

by | Nov 15, 2022

Home $ House for sale in the UK $ Birmingham – What to look for in houses for sale?

Whenever looking for a house for sale in the UK or in Birmingham, it is vital you look at the market trends and house price fluctuations in the wider area of West Midlands too. House prices of houses for sale can change even among different streets very close to each other so, as a landlord, it would be a good idea to be familiar with the area of Birmingham.

In this article, we will be looking at the city of Birmingham in detail so you know how to navigate the area and have a better understanding on where to invest.

Always consider average rental yield when searching for houses for sale in Birmingham

In Birmingham, how has the number of houses changed?

Growth in the area can be a good signal of a booming house market. However, too much growth could also have negative consequences on the capital appreciation of a house as time goes on.

Take a look at the table below for Birmingham that shows the growth in recent years.

1 year 3 years 5 years
Birmingham growth rate 3% 17% 28%

High growth rates can signal an appreciating housing market, nonetheless, if there are too many houses being built, this could reduce demand for housing as the supply of houses for sale starts to catch up with the demand. Leading to stagnation or a decline in house pricing so understanding the growth in Birmingham is important.

If you’re buying a house for investment rather than for the reason to live in the house over time and use the house as a place to stay in the long term, there is a need to look at the rental yield figure to see if the house for sale you are considering to buy is a good investment or not.

This figure is usually looked at by investors as well as the rental income of the area, the sale turnover and the rent turnover.

The table below represents this data and compares Birmingham to West Midlands and the broader suburb of the UK; West Midlands.

Average Yield Average Asking rent Turnover (rental) Turnover (sale)
Birmingham 4.6% £1,001 125% 21.4%
West Midlands 4.34% £919 123.12% 22.46%
West Midlands 3.89% £877 119.29% 20.00%

Let’s assume you want to sell the house you’re looking to buy in Birmingham for profit in the future, in this case, looking at the data for the number of houses sold per month in Birmingham would give you an idea of whether the area is actively getting new investors. This figure is 574.

It is vital you be careful with this figure however as the data can suggest something that isn’t true in Birmingham. To give an example, a lot of people buying new houses could also indicate there are a lot of new first time buyers in the area which would in fact drive down the rental yield.

The more people there are interested in renting, rather than buying, the more likely that area of the UK has high rental yields and hence investors like these areas to invest in to create a large amount of cash flow.

On average, what is the figure for the asking price of a house for sale in Birmingham?

Average asking prices for houses for sale in Birmingham

Average asking price (1 bed) £179,273
Average asking price (2 bed) £216,637
Average asking price (3 bed) £279,960
Average asking price (4 bed) £463,171
Average asking price (5 bed) £877,337

The above table is perfect for understanding the distribution of properties in the area as well as looking at this data alongside the average asking price per square foot of £440. Telling you what type of house is most in demand relative to the price of the area.

This could be due to more people looking at particular types of houses for sale over others or even due to the fact that Birmingham has a lack of supply of housing in certain categories.

On average, in Birmingham, the asking price for a house for sale in the area is £257,887.

The below table puts this figure into perspective as you can see the various average sale prices of the different type of houses for sale in Birmingham. From a 1 bedroom house up to a 5 bedroom house.

As you can imagine, as the price goes up, the size of a room also goes up and in general, the larger a house is, the more you can expect the sale price to be as well.

What is the final sale price of a house in Birmingham?

There are a lot of factors that impact the final sale price a house for sale sells for in the UK and in Birmingham. In Birmingham, this sale price works out to be £204,531. As an example, a factor like population growth over the last 10 years which works out to be 8% in Birmingham and impacts house prices of the houses for sale.

Housing category Total final sale price
Average sold price (detached) £357,971
Average sold price (semi-detached) £220,721
Average sold price (terraced) £181,920
Average sold price (flat) £128,934

Above, the exact type of house is also shown to vary in price in a table in Birmingham. You may think that the bigger the house is the more expensive, but actually, this table is more based on the demand for the properties in each category.

Housing category Sale price per square foot
Average sold price/sqft £2,226
Average sold price/sqft (new build) £2,147
Average sold price/sqft (old stock) £2,229

In addition, here is the price per square foot. By taking this data and doing an average, it is also possible to work out the average square foot of houses in Birmingham which is £2,247. From here you can get a sense of the price of the overall housing market and therefore, also find out the prices of the houses for sale.

In Birmingham, what are the demographics like?

Is the education level of Birmingham important when buying a house?

In the city of Birmingham, 25% people have a degree from a university. The higher this proportion is, in general, the more likely it is that the population is able to buy a house.

Interestingly, as people who have degrees go up, the average income of the area goes up too. You can see if there is a correlation, the average household income in the UK is price34,000 and the average income in Birmingham is £38,090.

This should correspond with the average percentage of people in the UK who have degrees at 22.6%.

What does the population of Birmingham look like?

Population growth in Birmingham is important to know if there is housing demand and the total population may also be looked at as large populations commonly have a lot of buyer demand.

In Birmingham, 1,027,285 people live in the city as their main place of residence.

It is important to note that it is not the case that everyone likes a large population to live in. People who tend to prefer a more relaxed life are more likely to buy or rent somewhere to live that has a small population and perhaps also wouldn’t mind if the population isn’t growing.

Other people also like to have a mix of both. Where they can visit rural areas and also benefit from the amenities of a busy city.

In Birmingham in the previous five years, have population numbers transformed?

Five years may seem like a long time but it is rare for a city to grow that much unless there is dramatic population growth. In Birmingham, this change has been 3%. Read more here

Someone who wishes to find out how this change has occurred over a longer period of time may also wish to read the headings below and see if the change has continued throughout the past decade too. Or if the change is only true for the more recent figure for five years of 3%. Click here to know more on the UK population trends.

Over the last decade, how has the population differed in Birmingham?

Populations change all the time but if there is a clear change in population in the last ten years this is even more reliable data about the population of the area as opposed to five. This adjustment in population works out to be 8% in Birmingham.

What this statistic is like in comparison to the population change in five years should provide you with a comprehensive understanding of what direction the population is heading in.

In recent years because of the pandemic, it is common to see dramatic differences in the population change in the last five years when comparing it to ten as people realise they can work from home but still keep the current jobs they have.

This means they can move to cities they wouldn’t have considered otherwise and be location-independent of their source of income. Perhaps making a longer commute into the office every week for example.

How much do people in Birmingham earn?

You may be wondering what the amount people earn has to do with house price. Well, house prices generally go up as people earn more not just because they can afford more valuable properties but also because good areas generally attract more desirable infrastructure. For reference, the average household income is £38,090.

This may be better schools, doctors and areas with lower crime rates. This results in a snowball effect which polarises different areas further, increasing the demand for housing in richer areas by a greater amount. And increasing the proportion of people with high social grade scores. For Birmingham this figure is 20%.

In general, do people commit a lot of crime in Birmingham?

For the city of Birmingham, crime rate is at 280. So for every 1000 people in the area, 280 commit a crime which is prosecuted. Paying close attention to this figure of crime rate is not only important for the value of a house but also to calculate the maintenance cost of owning a house and how attractive an area can be for future buyers.

So, compare it to the nationwide average of 79.52 per 1000 people and consider if you are happy with this figure based on the price you’re paying for a house you’re interested in.

On top of this, houses that are in areas where there is a high crime rate tend to have to pay higher insurance rates, costing a homeowner in the long term.

Additionally, paying for further security on a house such as CCTV or potentially gates and fences that deter thieves may be necessary for an area with a high crime rate.

Is there sufficient green space in Birmingham?

In the UK, there are a range of cities which have a lot of green space. In some cases, green space can get as high as 49% of outdoor land like in the city of Edinburgh. When specifically talking about Birmingham, the city has 13.3 per 1000 residents.

This can be compared to an average of 1.7 acres of green space per 1000 residents which is the UK’s national average. It is up to you to decide how much you’ll let the amount of green space impact your buying decision in Birmingham.

What is the social grade score of Birmingham?

The social grade of a city is useful when searching for a house for sale because it tells you what kind of jobs people have in the area. For example, there could be a lot of skilled manual workers or there could be a lot of pensioners and people on benefits.

The scale goes from a social grade of an A who are high managerial, administrative or professional workers to an E where people in this category are on state pensions, casual workers or unemployed on state benefits.

The number of people in Birmingham in grades A or B which are the highest skilled roles in the country is 20%. Realistically, you can expect workers in this category to earn a higher salary too.

For comparison, £38,090 is the average household income of the area. You can see how this figure is congruent with the number of people in the top two categories of the social grade at 20%.

Are the people of Birmingham deprived?

The deprivation levels of the UK can vary quite a bit. High deprivation levels signal a particular area has people who are struggling to make ends meet and pay for basic living expenses. For Birmingham, in particular, the deprivation levels are 33%.

This figure can be contrasted with the deprivation levels of the UK of 33% to see if the levels are below or above average.

Birmingham within West Midlands is notable for the type of people that live there. The statistics below show how this is the case.

As you read on, Birmingham will be looked at by comparing it to the local region, as well as comparing it to the wider region too (West Midlands). From what the population of the city is to how it’s growing as well as factors like the overall crime rate.

This data is impacted by the history of the area and what kind of industry there is around. All of which also impact house prices which is crucial for you to understand as you look at houses for sale in Birmingham.

Who can help you buy a house for sale in Birmingham?

A house for sale that is right for you

Find here below a list of criteria that we suggest you consider before looking for houses for sale in Birmingham

  • affordability – the UK gov website comes in helpful when you want to understand (see what house for sale you can afford)
  • Geographic Location – the county and region across the UK you are considering to invest in are crucial factors to consider when browsing houses for sale.
  • Transport network of the house for sale – Hopefully, the pandemic stays in the past. Therefore, working from home may become less predominant than a couple of years ago. Check the commuting time of the house for sale you are considering buying.
  • Bedrooms in the house for sale – are you looking for houses for sale for yourself, for a couple or for the whole family? This condition will narrow down the number of houses for sale relevant to buy.
  • EPC of the house for sale – today more than ever, the energy performance of the properties for sale on the market should be one of the first things you check.
  • Broadband speed – having a good internet connection is crucial nowadays. Always check the available subscriptions available for the areas of the house for sale you want to purchase
  • Are you a car owner? – if yes, you will have to check for parking availability of the house for sale. Does it come with a garage included in the price?
  • Conservation areas – when browsing for houses for sale, we suggest you take a look at the National Heritage list. When a house for sale is included it means that it is not possible for the future homeowner to make changes to the property, both inside and outside.
  • Houses for sale Conditions – some properties, like new builds, need no repairs or works; other houses listed for sale may need some investment to restore them and some others may need a complete renovation. Someone looking for houses for sale should always think about how much time and money they are willing to invest to complete the needed repairs.

House for sale in the same UK region

Below are a list of towns with a similar location to Birmingham.
Reading these analysis will help you evaluate the different houses for sale currently listed in West Midlands:

If you are interested in some other city or even region of the UK, please visit the following page houses for sale in the UK it contains all the data related to the houses for sale.

Nowadays, there are so many properties on the real estate market that it can be difficult to decide which one is the best house for sale for you.
So, who can help you navigate the process of choosing a house for sale?
The number of professionals that offer real estate investors advice and assistance is broad and when it comes to dealing with houses for sale, the process can be complex.

Find here a list of those that can help when buying a house for sale:

  • Moneylender – lends you the sum of money you need to buy the house for sale you are looking for
  • Insurance agent – A firm that provides several insurances and protections for the house for sale that might become your future house
  • Solicitor – A person or company that will sort out the legal work needed before buying a house for sale
  • Civil engineer – Also called surveyor, he or she will provide you with an independent valuation of the house for sale you are willing to buy
  • Mortgage advisor – Realistically, you will need a mortgage in order to afford to buy a house for sale. Mortgage advisors will guide you and propose the best mortgage deals based on your financial records
  • EPC specialist – Especially nowadays, getting professional advice on the Energy Performance Certificate (EPC) of the house for sale you are considering buying is crucial

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