Saturday, August 13, 2022

Birmingham leads the way in BTR investment nationally


JLL’s research into regional BTR growth also follows its assessment that, based on current market performance, rental values in Birmingham look set to rise by 2.8% p.a. over the next five years

Investment in Birmingham’s build-to-rent (BTR) market is leading the way nationally as development in the UK’s regions looks set to eclipse that of London, according to new research from JLL.

A pipeline of almost 50,000 homes outside of the capital will see global investors propel the government’s Levelling Up agenda this year. A total of 11,300 of these homes will be located in Birmingham, with 1,900 already completed and a further 9,400 under construction.

This early-stage development has attracted significant capital commitments, and a transaction total of £670m ($793.03m) made Birmingham the most popular city outside the capital for investment in 2021, driven by key deals including Heimstaden Bostad’s £160m ($189.38m) acquisition of Galliard and Apsley Capital’s Soho Wharf.

JLL’s research into regional BTR growth also follows its assessment that, based on current market performance, rental values in Birmingham look set to rise by 2.8% p.a. over the next five years.

The homes in delivery will go some way to establishing the city alongside Manchester as the largest regional BTR market in the UK.

Developers seeking value in the UK’s regional markets have 20,000 BTR homes under construction and a further 30,000 with planning consent – eclipsing London’s 30,000-strong pipeline of homes.

Investment in the UK’s regional real estate reached a record £33.2bn ($39.30bn) in 2021, including an unprecedented £3.1bn ($3.67bn) invested in BTR as regional investment also exceeded London for the first time – 69% up on the capital.

William Cox, director of residential at JLL in the Midlands, said: As the world’s focus shifts to Birmingham during the Commonwealth Games, it’s fantastic to be able to showcase a city in growth. Employment prospects are steadily improving, the city centre is expanding and more graduates than ever are deciding to call Birmingham home.

Louise Emmott, head of regional residential agency and development at JLL, said: The ten largest regional cities are home to a combined population of 15.6m compared with London’s 9m. With the Levelling Up agenda promising further devolution and radical policy to shift government resources to the regions, BTR will be intrinsically linked to successful regeneration focused on sustainable community investment.

Emmott said: As investors turn their attention to ‘safer’ sectors in the wake of the turbulence created by the pandemic, appetite for living assets is soaring and the regions offer opportunities for scale. It’s with this in mind that regional investment has hit its highest levels since 2014 and why we anticipate 2022 being another record year as local authorities seek to improve their housing provision through brownfield-first strategies that support city centre BTR development.


The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply