The Birmingham property market has gone from strength to strength in recent years, and buyers are more willing than ever to pay the full asking price.
A Birmingham postcode has been listed as the top area with smallest house price drops between October 2020 and October 2021. The B37 area saw an average shortfall between asking price and selling price of just -1.07%. The average home was listed for £190,709 over the period, and sellers received on average £188,679.
In a report published by property buying and selling specialist Property Solvers, asking price versus sales price data was analysed across the whole of England. It shows that the biggest drops, where sellers were forced to accept a lower offer, were found in London.
The area with the largest price falls was in the SW3 postcode in south-west London. Here, homes were put on the market for an average £2,720,769 – one of the highest priced areas in the country. However, the average sold price came in at £2,575,289, a fall of -5.49%.
Buyers grabbing a bargain
Other London postcodes where buyers are getting the best deals include W8, SW13, NW7 and NW3. Here, the difference between asking price and sold price was, respectively, -4.31%, -6.10%, -7.58% and -4.22%.
Ruban Selvanayagam, author of the report, says of the London findings: “Despite what has been a very active market, homebuyers are still, by and large, able to negotiate down on prices. There is also wider evidence of surveyors down valuing properties that are misaligned with the realities. This means that properties end up selling for lower than the original estate agent price estimation.”
He adds: “It’s relative of course, a more expensive property is likely to see a wider price difference. Nonetheless, when buying, it’s worth checking how much prices are being reduced in your area using our tool.”
Some other areas of Birmingham also held their own when it comes to asking prices. Notably, B7 (-0.97%), B42 (-1.35%), B15 (-1.47%) and B44 (-1.54%) all saw buyers paying on or close to the advertised value.
Birmingham property market boom
The city of Birmingham and the surrounding area has seen its property market and demand levels boom in recent years. What’s more, it is a honeypot for young professionals in particular due to its rapidly expanding jobs market.
One big factor behind the huge growth and investment in the city is the so-called “London exodus”. More and more businesses are either relocating or opening new offices in the Midlands city. The likes of BT, HSBC, KPMG, Barclays, PwC UK and Goldman Sachs all have, or are soon to open, premises there. This is opening up hundreds of new jobs, which is boosting the city as well as the commuter belt around it.
Birmingham has also just experienced its strongest office take-up performance since the first quarter of 2020. The results, published by Birmingham Office Market Forum, demonstrate two consecutive quarters of growth, which is a huge boost for the area. As employment opportunities open up in the city, alongside investment in housing and infrastructure, Birmingham offers a well-connected alternative to London living.
A place to invest
Birmingham property investment is a popular option for both UK-based and international investors. With the city’s population growing by around 10,000 people per year, there is a relatively low supply of purpose-built residential homes within the centre. A huge number of incomers are under 35 years old, according to one JLL report, meaning the demand for rental homes is particularly high.
Earlier this year, data from The Rental Market Demand Review by estate and lettings agent Barrows and Forrester showed that Birmingham had seen the largest increase in rental demand in the country. It is also a key build-to-rent location, with numerous new developments taking shape there to plug the supply gap.
As the Midlands city continues to improve its position as a top global city, more businesses and people are being drawn to the area. This will provide a further boost for the Birmingham property market in the years to come.
