Birmingham's major supply and demand imbalance

Over 100,000 new homes

A research study by consultancy Marrons has reported that top city for UK property investment, Birmingham, is in need of 127,000 new homes in less than two decades. With the second highest population in the UK, Birmingham’s demand for housing is constantly increasing. 

Demand outweighing supply 

The demand for housing in Birmingham has consistently outweighed the supply leading to a ‘housing crisis’ as current accommodation cannot meet the needs of the city’s population. 

Birmingham’s population is forecast to grow further, with the population predicted to increase by 7.8% by 2038. The lack of accommodation in the city is therefore also set to increase, driving property values in Birmingham higher alongside increasing rental demand, making this an excellent choice for UK property investment. JLL have predicted a rental growth of 22.2% over the next five years, higher than any other UK city, largely driven by the consistently rising population. 

Historically Birmingham has experienced an undersupply of rental property, particularly in the city centre. According to Marrons, Birmingham is required to build more homes than any other UK city by 2040. The imbalance between housing demand and supply is an unique opportunity for UK property investors, with lucrative returns predicted.