An article by The Times looked at a study by estate agency Hamptons International, which revealed the West Midlands’ economic and employment boom has positively impacted the region’s property market.
According to the Office for National Statistics employment figures between 2015 and 2018 and property sales figures from estate agency group Countrywide showed 16 of the top 25 local authorities that had a rise in employment rates also saw higher than average house price increases.
The West Midlands boasted a 6% increase in employment levels from 2015 to 2018, while the national average during that same time period was 3.5%. Savills predicts the West Midlands to see a 14.8% growth in second-hand property prices across the next five years, suggesting the future looks bright.
Birmingham is the main engine behind the growth in the West Midlands. Over the past three years, this regional city has boasted a 12% rise in employment levels and a 23% increase in house prices. The upcoming HS2 line is further driving house prices up as demand for city centre homes continues to grow.
Deloitte’s Regional Crane Survey even revealed residential development in Birmingham is at record levels. In the past year, 16 new-build developments have been completed and another 20 schemes are under construction. These projects include apartments, offices, and hotels and are bringing further investment to the thriving city.
The growing young population in the West Midlands has been cited as a strong indicator for a bright future ahead. PropCast, a website measuring demand for property in specific postcodes, revealed demand has increased by 5% in the region across the past three years and that most buyers have been millennials.
As Birmingham is considered one of the youngest cities in Europe, residents under the age of 25 make up 40% of the population. With five universities located in Birmingham and a high retention rate of graduates, the growing young population is expected to further increase demand in the city’s property market.