Birmingham auction is the ideal opportunity to invest in the UK’s buy-to-let hotspot

After Birmingham was named the top spot for buy-to-let investment in 2020, the experts at SDL Auctions Bigwood say there has never been a better time to invest in the city.

Property development and investment company SevenCapital analysed Zoopla and Land Registry data, demographic information about the locations and agents’ predictions to compile a league table of UK cities it expects to perform well for landlords – and Birmingham topped the list.

Vejay Pal, head of auctions West Midlands at SDL Auctions Bigwood, said: “If you were wondering whether to invest in property – and where – then I think this research answers your question.

“The future is bright for Birmingham; we always knew it was a great city to invest in property but to learn that it’s been named the best in the UK is fantastic. It’s a buzzing, vibrant city which is just brimming with opportunities, with plenty of fantastic properties just waiting to be snapped up at auction.”

The fact that Birmingham offers great investment opportunities is no secret, as was illustrated by the packed auction room for SDL Auctions Bigwood’s sixth auction of the year at Villa Park.

Some of the homes sold at the auction included 58 Whitehall Road, Handsworth, a semi-detached house converted to three self-contained apartments, which sold for £256,000 from a *guide price of £160,000+, and 48 Barrows Lane, Yardley, a three bedroomed detached house close to amenities which sold for £185,000 from a guide price of £170,000+.

Vejay said: “There is a constant demand for properties in Birmingham and the surrounding areas, as landlords seek homes to add to their rental portfolios. And demand from tenants for homes to rent shows no signs of letting up, either. This creates the ideal climate for investors, with demand pushing up prices, giving them both capital growth and the confidence to know they will have no problems letting their properties to provide an income.”

Reporting on SevenCapital’s league table, Propertyreporter.co.uk cited Birmingham’s property price growth of 19.3% since 2014 and says Knight Frank is predicting growth of a further 12.5% by 2022. PropertyData says investors can expect rental yields of between 4.4% and 5.3%.

Other areas in the UK which performed well in SevenCapital’s league table were Manchester in second place, followed by Liverpool, Sheffield and Leeds in third, fourth and fifth respectively. The East Midlands performed well, too, with Leicester and Nottingham both taking a spot in the top 10.

Back in Birmingham, the team at SDL Auctions Bigwood are currently seeking properties to sell in the final auction of the year, to be held at Villa Park on Wednesday 18 December.

Vejay added: “We’re looking forward to another busy auction, with buyers from around the country ready to invest their money in Birmingham, so it will be a great opportunity to sell your property and enjoy a fast and hassle-free transaction, with contracts exchanged at the fall of the hammer.”

To find out more about selling at auction, or to request a free auction appraisal, please click here or call the team on 0121 233 5046.