Is Birmingham the buy-to-let hotspot of 2020?

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Is Birmingham the buy-to-let hotspot of 2020?

If you are looking for an area to purchase a buy-to-let property outside of London, then Birmingham could be an ideal location. The cloud of Brexit has cast uncertainty over the London property market since the 2016 referendum. This has seen businesses and professionals moving out of the capital to seek move effective locations. One of these locations is Birmingham.

The reinvention of Birmingham

The Second City has seen vast redevelopment and infrastructure added in recent years. Huge areas of the city have been vastly improved and new connections including a tram service added. As well as these new modes of transport is the upcoming HS2 link to London. HS2 has been hit by delays but once completed, it will open the city to a new group of residents. A 45-minute commute would allow London based workers to live in Birmingham and benefit from the lower house prices.

But it’s not just workers that are taking advantage of Birmingham and all it has to offer. Large London based businesses are opening to the idea of relocating all or part of their office into the Midlands. Many financial institutions making the move include the likes of the Bank of England.

There is also a vast student population in Birmingham with a large foreign student base. Birmingham University is the fourth largest university in the United Kingdom with nearly 35,000 students. There are also neighbouring institutions making Birmingham an ideal area for an HMO on a buy-to-let basis.

Reasons to buy-to-let in Birmingham
  • Huge university population with many foreign students
  • Large companies moving offices to Birmingham
  • Growing number of affluent young professionals
  • HS2 link will allow super quick access to London
House prices: Birmingham vs London

According to a recent Rightmove index, the average house price in the West Midlands stood at £229,998 in October 2019, a figure up 1.1% for the year. In comparison, average Greater London prices came in at £618,432 with an annual decline of 1.1%. While this indicates that prices are getting cheaper in London, you could also argue that Birmingham offers greater potential for high return on investment.

Bearing in mind the above benefits of property purchase in Birmingham, one way that investors can get into the market is with a bridging loan. Obtaining a bridging loan for BTL purposes can be one of the most speedily and efficient ways of securing funding, even for auction finance. Terms for a bridging loan can be agreed within hours of an enquiry and funds in place to complete the purchase with the 28-day auction deadline.

To get more details on bridging loans and their benefits, call MT Finance on 0203 051 2331 or fill in our contact form and a member of our team will contact you shortly.

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