Birmingham’s global profile is growing exponentially; it’s no wonder when you look at the city’s exceptional connectivity, its booming youthful job market, rich cultural heritage, and cheaper cost of living compared to London.

It is therefore no surprise that the UK’s second city is projected to receive the highest rental growth rate of any UK city over the next five years – particularly when looking at the rapid population growth and stark supply-demand imbalance in the rental market.

Birmingham offers investors and developers a lucrative market for Build to Rent (BTR) schemes. Moda Living, Select Property Group and SevenCapital are just some of the early developers who have begun to reap the rewards of BTR developments in Birmingham.

Why is Birmingham the place to be?

Birmingham was a more popular choice for people moving out of London over the likes of Manchester, Bristol, and Leeds during the last two years. So, why is that?

With a graduate retention rate of 41% from its five universities, the city has great job prospects. The Colmore Business District is home to several investment banking giants. Goldman Sachs plans to move 800 staff to its new customised office space next year. Their initiative to pipeline young and diverse talent outside of London is sure to boost Birmingham’s job market.

As Birmingham rises to second in the UK’s top tech cities, this will have a sizeable positive impact on city’s large Gen Z and millennial population who make up a large share of the population.

HS2 is forecasted to bring an immense 50,000 additional jobs to the West Midlands. Birmingham will be 52 minutes from London: a convenient commutable distance. Birmingham Airport plans to invest £500m to improve and expand the airport will heighten the city’s interconnectedness and is forecasted to contribute £0.6 billion a year to the local economy.

Historically renowned for its innovation and entrepreneurship, the city’s reputation has not faded. Birmingham is home to six Michelin-star restaurants outside of London (more than any English city outside of London), the UK’s busiest theatre, more Canals than Venice, and more green spaces than any other UK city. Not to mention, the BBC is also relocating to Digbeth’s up and coming creative quarter.

Birmingham is undoubtedly an immensely attractive place to work, play and live. So, is it any surprise that rental demand is soaring?

Why opt for Build to Rent?

If BTR investors and developers understand how to strike a balance between capital expenditure and operational costs, to get an accurate picture of each scheme, they have the opportunity to make substantial long-term gains.

Investors should offer various rental property sizes and ensure good accessibility to transport nodes and a growing population with sufficient disposable income. Further to this, sustainability and ease of maintenance should be integral to the design and construction of each scheme.

Birmingham provides the perfect tenant landscape for prospective investors, with 75% of Birmingham city centre inhabitants aged under 35, and in the UK 46% of 25-34 years olds currently rent – up from 27% a decade ago.

This increase in rental demand can be attributed to the increased flexibility that rental properties provide for young mobile professionals. Widescale increases in mortgage costs, also makes rental properties a more cost-accessible alternatives for not just younger working professionals, but families, older working individuals and retired baby boomers.

The city has a dreadful housing deficit of 14,000 homes and a population growth rate three times greater than the rate at which properties are being built, according to AECOM infrastructure consulting firm. So, Birmingham seems a fitting place for investors and developers to look towards.

What does Birmingham have to offer?

Now we understand the benefits of BTR, what is currently on offer for those seeking out a BTR scheme for their next home? Here’s a few examples…

The Mercian, by Moda Living

Birmingham’s tallest residential tower, Moda, includes 481 intergenerational Build to Rent homes. The Chicago-style building includes a mixed commercial, retail and leisure space. The Mercian boasts a 200m podium open-air running track on the roof.

Neighbourhood, by Henry Boot Developments (HBD) and CBRE

Expected to be completed in Q3 2026, Neighbourhood is a £140m 414-unit BTR development located in the Jewellery Quarter area of Birmingham. The scheme consists of one-, two- and three-bedroom apartments, with a winter garden, urban green space, and high-class amenities.

Affinity Living Lancaster Wharf, by Select Property Group

In the words of Select Property Group, their Lancaster Wharf development will consist of: “modern design, spacious apartments and regular events hosted in a beautiful inspirational space. This will create a thriving resident community and a lifestyle of luxury”.

What does the future look like?

Birmingham had the second highest BTR investment volume across UK cities in 2021 and this is only set to increase, with 4,390 BTR units currently under construction and a further 9,981 units which have received planning permission in Birmingham.

At Liquid, we recognise that the West Midlands property landscape is fast moving. We work with a host of clients in the sector to support their needs against this backdrop.

Our dedicated property team is here to support you, whether that be helping to project your scheme to a larger audience or supporting you with stakeholder engagement. We can enhance your position in the market.

If you would like more information or would like our support, please get in touch with our property team at propertyinfra@weareliquid.com.