The latest funding announcement for the Midlands city’s transport system is another spur for the Birmingham property market as investors crowd in.
With the upcoming arrival of HS2 already sparking a surge in investor interest in Birmingham property as buyers look to get ahead of the anticipated acceleration in house prices, the latest transport announcement offers yet another factor putting the city on the map for investment.
This week, Chancellor Rachel Reeves announced a huge £15bn of investment in transport across the Midlands, the North and the West Country, to be spent on trams, trains and buses in the selected mayoral authorities.
The West Midlands is set to receive £2.4bn of this funding, with plans already underway for a major Metro tram system extension that will connect Birmingham more efficiently and create new links for Digbeth, the new HS2 station at Curzon Street, and the newly created Sports Quarter.
Birmingham property in these locations is already becoming some of the most sought-after in the city area, with Digbeth quickly rising through the ranks in recent years as one of the city’s trendiest hotspots, while Curzon Street is surging in popularity ahead of the new HS2 station opening up there.
More on the cash boost
The £2.4bn is expected to be spent on the city’s ambitions to deliver mass transit from East Birmingham to North Solihull, transforming how people travel across the city and opening up more opportunities for residents and businesses alike.
It is also set to unlock £3bn of private investment over the next five years, with a significant amount of funding going towards Birmingham’s new Sports Quarter, where Birmingham City’s new stadium will be situated.
In conjunction with the government’s cash pot, the football club’s chairman Tom Wagner has committed £3bn towards the project. He says the upgrade will create up to 8,000 jobs, providing a huge boost for the city’s economy.
Better transport, more business interest and enhanced job prospects are all factors that are highlighting the appeal of Birmingham property to forward-looking investors seeking opportunities in areas penned for major regeneration.
Investing in property along good quality transport lines ensures strong tenant demand along with future saleability, and the new infrastructure investment will open up more prospective investment locations across the city.
According to Andrew Carter, chief executive of Centre for Cities, the latest funding announcement from the government represents a “welcome shift” towards a city region-led approach.
He said: “Investment in the transport networks of our city regions is a critical step toward boosting local economies, by helping people access jobs and education opportunities more easily.”
Birmingham property: from strength to strength
Birmingham property investors often target the city centre in order to capitalise on both house price growth and the strong tenant demand from professional renters.
There continues to be a shortage of rental supply in the city, which has supported rent rises in recent years, but this also extends beyond the centre to places that are becoming more sought after, including the Digbeth area and further out in places like Solihull.
Birmingham property investment prospects rank highly across a number of measures; the city recently came out as the highest-scoring English city after London in the latest list from Resonance which ranked 100 European destinations as places to live, work and invest in 2025.
The city is already a hub for global businesses thanks to its ‘second city’ status and relative proximity to London, but the upcoming high-speed rail connection from the capital, along with the latest major transport boost announcement, will further enhance its appeal to businesses and workers internationally.
This provides further impetus for Birmingham property investors to get involved in opportunities in the city now, with transport investment historically creating a major uplift in property prices both during the construction phase and once it is up and running.
Levelling the playing field
Commenting on the £2.4bn funding announcement, Transport Secretary Heidi Alexander, said: “Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change.
“For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of Government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off.”
If you’re looking for a Birmingham property investment opportunity to capitalise on the city’s transport uplift, get in touch with BuyAssociation today to find out about our current opportunities and get ahead of the market.
