Birmingham BTR boom as investment soars 40% to £553m
2022-06-08
By Rhodri MorganWed 1 June 2022 Property Week
Gerald Eve partner Bobby Barnett tells Property Week that the city’s BTR appeal comes from a strong multi-university presence, with around 90,000 students, 46% of which last year said they intended to stay on after graduation.
“The investment appeal for Birmingham BTR is clear: a very strong potential resident pool, vibrant economy and good graduate retention from the universities across the city make BTR schemes an excellent option for young professionals,” he says.
Barnett adds that projects like HS2 also offer opportunities to those looking to work in London without the constraints of the higher price of accommodation and living cost there.
But a yearly target of 2,550 homes, adopted by Birmingham City Council in 2017 through to 2031, has not been met to date, resulting in a deficit of 14,230 homes. Based on data from the ONS, 8,420 dwellings were completed in Birmingham between 2011 and 2021, leaving 42,730 to be completed before 2031, or 4,273 annually over 10 years, if the target is to be met.
With annual average completions in the city over the past decade totalling just 842,
completions would need to increase more than threefold to reach the target by 2031.
Currently, 4,390 BTR homes are under construction in Birmingham, with only two schemes set to be completed this year.
“Demand is unlikely to meet supply any time soon,” Barnett adds. “But supply of BTR units will lead to secure rental streams, while providing the city with much-needed housing.”
Birmingham ranks as the second most attractive UK build-to-rent (BTR) market, behind central London, due to an acute undersupply of housing, according to research released this month by Gerald Eve.
Gerald Eve partner Bobby Barnett tells Property Week that the city’s BTR appeal comes from a strong multi-university presence, with around 90,000 students, 46% of which last year said they intended to stay on after graduation.
“The investment appeal for Birmingham BTR is clear: a very strong potential resident pool, vibrant economy and good graduate retention from the universities across the city make BTR schemes an excellent option for young professionals,” he says.
Barnett adds that projects like HS2 also offer opportunities to those looking to work in London without the constraints of the higher price of accommodation and living cost there.
But a yearly target of 2,550 homes, adopted by Birmingham City Council in 2017 through to 2031, has not been met to date, resulting in a deficit of 14,230 homes. Based on data from the ONS, 8,420 dwellings were completed in Birmingham between 2011 and 2021, leaving 42,730 to be completed before 2031, or 4,273 annually over 10 years, if the target is to be met.
With annual average completions in the city over the past decade totalling just 842,
completions would need to increase more than threefold to reach the target by 2031.
Currently, 4,390 BTR homes are under construction in Birmingham, with only two schemes set to be completed this year.
“Demand is unlikely to meet supply any time soon,” Barnett adds. “But supply of BTR units will lead to secure rental streams, while providing the city with much-needed housing.”
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