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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?

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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.

In general, what do houses for sale sell for in Birmingham?

For the city of Birmingham, the average price a house sells for is £204,531. This value usually depends on the exact location of the house within Birmingham as well as other factors like the population growth which is 8% over a ten-year period.

Sale price per square foot
£2,226
£2,147
£2,229

Generalising the bottom table, the average value per square foot of a house for sale is £2,247. This value averages all of the types of houses for sale in Birmingham. So, if you’re not sure what type of house you want specifically, you can still get an idea of the real estate market of Birmingham.
Bear in mind that if you are a landlord looking to buy a property to rent, you will also run into other expenses like letting agent fees and the cost of listing your property for sale on Rightmove in your city.

What’s the rental yield in general for the city of Birmingham?

The figure of rental yield is commonly looked at by investors who wish to increase their income by investing in areas where rental yields of the houses for sale are higher. Usually, the higher the rental yield, the more attractive a house for sale is for an investor. This is why it is common for landlords to increase rent using section 13, to maximise this yield, as it is so important.

Nonetheless, there are also instances where an investor will go with a house with lower yields in order to benefit from the appreciation of a house too which is why it’s vital to look into all the details of Birmingham.

The data below shows the rental yield, rent turnover and the percentage of the money made on the sale of a house. The data is broken down into the county city is in (West Midlands) as well as the broader region; West Midlands.

Average Yield Average Asking rent Turnover (rental) Turnover (sale)
Birmingham £0 £1,001 £1 £0
West Midlands 4.34% £918.64 123.12% 22.46%
West Midlands 0.04 876.64 £1 20.00%

Also, you can compare other data to the table above such as the number of houses sold per month in Birmingham which is 7 and get a better understanding of the housing market.

This is great if you want to gauge if investors are actively looking for houses for sale in the area over other areas in the UK which may be an induction of how profitable Birmingham is to invest in. Both in terms of rental yield and capital appreciation.

Are there new houses being built in Birmingham to make it grow?

Before making an investment and move forward with buying a house for sale, another important set of data an investor should analyse is the growth trends of the area in question.

Below are the forecasted growth rates for the city of Birmingham at 1 year, 3 year and 5 year intervals:

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

Examine this figure carefully as the addition of a lot of new houses to meet demand could mean that house price of the houses for sale in Birmingham gradually reduces with an increase in the housing supply. This could be a good indicator to understand if your house will appreciate or not. Too many houses and too much supply could drive down the prices of homes or stagnate them. So be sure to check out what is exactly happening in Birmingham.

Other cities in different locations you can consider to buy property

You can consult our list below that goes over a list of cities not necessarily in West Midlands, allowing you to find similar places to Birmingham:

You may also refer to our webpage specific to UK houses for sale to get an overview of the large number of cities in the area, houses for sale in the UK

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

Table showing the 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

Based on this table, hopefully, you will be able to tell what type of house for sale is the most suitable for your budget. You can also consider the average asking price per square foot (£440) for houses for sale with this table to get a good idea as to whether Birmingham is the right area to buy a house in for you.

When investors make offers for houses for sale in Birmingham, the average price asked by the homeowners works out to be £257,887.

In the table below, for all the different sizes of houses in the area, the average asking prices have been displayed. This tells you what kind of house is more or less expensive and sought after despite houses with fewer bedrooms being overall less expensive anyway.

Any house that looks like it is overpriced for the number of bedrooms it has in Birmingham is typically not overpriced. It is just the case that that type of housing has a higher demand, therefore, people are willing to pay more.

What kind of demographics does the city of Birmingham have?

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

In Birmingham, for every 1000 people, there is currently a crime rate of 28037%. This can be compared to the national average of 79.52 for every 1000 people.

Low crime rates are desirable for your safety as a homeowner. Even if you don’t tend to leave the house too often and tend to not mind living in a slightly more dangerous area. Things like burglaries are always a possibility which could harm your ability to pay for home insurance and also may force you to install additional security in your home that can cost you further.

Having said this, you can look at the crime rate on a deeper level to find out what the threats are exactly. It could be the case that a proportion of these crimes (28037% for every 1000 people) come from things like anti-social behaviour rather than more serious crimes like violence and sexual offences.

If this is the case you may be more willing to look over a high crime rate within the areas you’re looking to buy a home.

What is the city of Birmingham’s social grade score?

The social grade score is a good indicator of what type of jobs people generally work in the area. Whether that be working in the primary sector, secondary sector, tertiary sector or maybe the quaternary sector of jobs.

The scale is slightly different to this though on a scale of A to E. A refers to people who are in the most skilled, managerial roles whereas E include people such as casual workers.

In Birmingham, the percentage of people in the two highest categories, A and B is 20%. This figure includes people who are therefore most likely to be more skilled and have higher paid jobs.

When contrasting these figures, the average household income for the area is £38,090.24. This income will generally get bigger as the percentage of people in the A and B categories go up too (20%).

How educated are the people in Birmingham?

In Birmingham, the proportion of people who have a degree is 25%. Generally speaking, as the number of people with degrees increases, the more people are able to afford houses to buy as a degree is a good indicator of a higher income. To put this into perspective, the average income of Birmingham is £38,090.24.

This figure for average household income usually goes up alongside the percentage of people who have degrees.

However, this is not a hard and fast rule, there are many factors influencing the buying power of a population and hence the appreciation of housing and the number of houses for sale in the area. This can include the rental yields of the area and other demographic statistics like crime rate.

Nonetheless, it cannot be argued that those with degrees tend to live in more affluent areas as 82% of people who achieve a first in degree level education are owners of the place they live.

What is the population of Birmingham?

In total, the number of people in Birmingham is 1027285. This figure can be used to estimate the appreciation of the houses but it is also important you look at the population growth figure in order to make this more accurate.

Whether a large population benefits you as a landlord is dependent on what you want from a home. A large population is great if you have children who prefer the bustle of crowds in cities but there are also those who purposely want to buy somewhere rural.

You may also be able to find a balance of both where there are shops, restaurants and entertainment and also rural areas all within a short distance which may be the case ni Birmingham, depending on where exactly you are.

How has Birmingham changed in the past five years?

Five years provides enough time for a city to grow dramatically. It may be the case that the population grows or shrinks but the city of Birmingham has changed by 3%. Read more here

It is also helpful to compare this data to a longer time period like 10 years like in the below subheading. If the population trend of growth or decline has been there for a longer period of time you’ll be able to tell if 3% is a recent change or not.
Click here to know more on the UK population trends.

In the last decade, what is the difference in population in Birmingham?

8% has been the population growth change in the past 10 years.

Usually, this is more of a conservative figure compared to the five year change of a city.

Industrial changes can also be the reason for this shift but it could also be due to immigration or emigration. Bringing people in or out of the area.

The recent global pandemic has also shifted the number of people living in cities as people realise they can now work remotely. It may be that the people of a Birmingham have seen a more desirable way of working, moving to make themselves more comfortable in their careers.

For example, the population of the South west of England has seen a massive increase in population because workers want to move there to benefit from the slightly better weather, lower house prices and also the rural area. Nonetheless, they can also benefit from travelling to the capital city of the UK, London.

In Birmingham, what are the deprivation levels like?

Most of the time, high deprivation levels signal that people cannot afford to sustain their living expenses. In Birmingham, currently, £0 people fall into this category.

Measuring this statistic against the nationwide average of 33% should give you a pretty good idea of where the city lies in the scale of poverty in the area.

How much are those living in Birmingham earning?

By and large, a higher household income in a population can have positive effects on the crime rate and the quality of space. This is due to the fact that higher earners tend to buy houses where there are better schools and more desirable amenities that impact the quality of life someone has.

In Birmingham, the average income is £38,090.24. Measuring this figure against the average household income for the UK of price34,000 should tell you if the city is higher or lower earning.

When buying a house, use this statistic with other factors when making a decision too like the crime rate or the social grade score of 20% to decide on what the demographics are like in the area.

How much green space is available to residents of Birmingham?

Whether you view green space in Birmingham as important to you as a homeowner is up to your personal preferences. Having said this, there is a clear benefit on the overall health of people who live near green space as the government has stated keeping green space in proximity to people is one of the biggest factors for combating obesity.

In Birmingham, the number of acres of green space for every 1000 people currently is 13 which can be measured against the UK average of 1.7.

The city of Birmingham, situated in West Midlands, is a particularly impressive part of the UK because of the specific demographics of the location.

In the below headings, the city of Birmingham and its demographics will be compared to its wider location (West Midlands). This includes population size, growth and population education now and into the future.

These statistics are heavily influenced by socio-economic factors and as a result this also shapes the projected house price of the houses for sale in Birmingham. So, taking a good look at the data is essential to understand the area you are considering to buy in.

Advice from experts on properties for sale in Birmingham

Considering all the above data and information provided, you may want know who can help you buy a house for sale.
Lots of professionals offer property investors and first-time buyers advice and assistance in dealing with the process of acquiring a house for sale.

Below, you can find a list of professionals that come in handy when looking for houses for sale:

  • Lender – Is someone capable of lending you the money you need to complete the purchase of the house for sale
  • Insurer – Insurance companies provide building insurances and other financial products you need to protect your real estate assets
  • Conveyancer – This professional will take care of the legal work needed when looking for a house for sale
  • Surveyor – Use this professional to assess the condition of the house for sale you are willing to buy, get an independent valuation and feel more comfortable when negotiating the final price
  • Mortgage broker or adviser – Different buyers can access different mortgages to buy a house for sale. Let the mortgage broker suggest to you which one is the best given your financial situation
  • Energy professional – Nowadays is more important than ever, to get professional advice on the Energy Performance Certificate (EPC) of the house for sale you are considering as your next investment

Finding the ideal house for sale 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.

Frequently Asked Questions (FAQ)

Do properties in Birmingham have the potential for renovation?

Every single month in Birmingham, there are 3 planning applications, of which nan result in a success. Look at this in terms of the population size of 1027285 to work out if you think you’d have good planning success if you were to renovate.

How many property sales occur per month in Birmingham?

7 property transactions are reported in Birmingham each month, alongside a broader picture of approximately 1.1 million property sales across the UK.

What is the population change each year in a city like Birmingham?

When evaluating the population trajectory of Birmingham, explore the decade-spanning population shift of 8% and the five-year modification of population of 3%. By drawing comparisons, see if demographic changes in your chosen area is

What is the asking price for houses for sale in the wider region of Birmingham?

Currently, the mean asking price of a house in Birmingham is £440, calculated using the average value per square foot

Is a house for sale in Birmingham an expensive choice?

Ascertain the costliness of a property by examining a listed house for sale in relation to the prevailing average selling prices. In Birmingham, this stands at £204,531, whereas the UK’s mean is £286,500.

Buying a home in Birmingham? Find trusted estate agents below

Purchasing property in Birmingham can be a complex process. Having the right real estate agent to guide you makes all the difference. We understand how stressful and time-consuming finding an agent can be so we have provided all of the most relevent agents and their contact details below in our convenient table.

Estate agent Email Contact number Address of agent
Claremont Property Group Jade Brown (jade@claremontpropertygroup.co.uk);Manjit Deol (manjit@claremontpropertygroup.co.uk);Perm Saini (perm@claremontpropertygroup.co.uk) 1212363310 55 Holloway Head
White Rose Chartered Surveyors Chris White (chrisw@whiteroseproperty.co.uk) 441216334433 GEORGE NOTT HOUSE
Centrickproperty nan 441213476116 16 COMMERCIAL ST
Leary & Co. Ltd Ben Leary (ben.leary@leary-co.com) nan 3 Brindley Place
Click Lettings Lianne Hughes (lianne@clicklettingsandsales.co.uk);Antony Lune (tony@clicklettingsandsales.co.uk) 441212274860 123 Hagley Road

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donnell-bailey

Donnell Bailey

Property expert

Donnell is a property expert focusing on the property market, he looks at a combination of legislation, information from property managers, letting agents and market trends to produce information to help landlords.

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