The latest report from JLL has revealed that the upcoming HS2 line has driven demand city centre homes. With Birmingham city centre house prices seeing substantial growth.
The research revealed the growth is by driven by under-35s. Young professionals relocating from london and overseas students. Alongside the continued population growth in the region.
“We knew demand for city centre living here was far outpacing supply, but when you look behind the numbers, it is intriguing to see that the trend is clearly being driven by HS2.
“When you consider that the first bullet train isn’t due to be in service between London and Birmingham until 2026, it underlines just how savvy young professionals are, and how highly they rate efficient and high-speed transport links.
“Roughly three-quarters of city centre residents in Birmingham are 35 or under, and because supply is lagging, the typical monthly rent for a prime one-bedroom flat is now just over £1,000 a month, and £1,600 for a two-bedroom property.” Simon Horan, JLL
The report also revealed that the West Midlands saw a 5.3% increase in the year to Q3 2018 driven by a local housing shortage. With 15.9% increase in house prices and a 16.5% increase in rental income expected for 2023
With population growth expected to remain strong in Birmingham with an extra 50,000 people forecast to be living in the city by 2023, equivalent to a population growth rate of 0.9% pa over the five year period. One factor driving the population growth is the availability of jobs. The job growth story is expected to continue over the next five years with employment growth averaging 1.1% pa in Birmingham, well above the national average of 0.5% pa.
The JLL 2019 projections