Buy-to-Let Mortgages in Birmingham

With a population of over 11 million, a thriving student community and a rich industrial heritage, Birmingham is popular among property investors, but is it the right city for your buy-to-let mortgage? Here you will find the information you need to answer this question, including rental yields, house prices and more.

Is Birmingham a good place to get a buy-to-let mortgage?

The main metric you should consider when mulling this over is the rental yields on offer in Birmingham. At the time of writing (June 2024), the average rental yield in the city is 4.8%, according to research from TrackCapital. This is below the national average but it’s important to note that some areas of the city have rental yields of up to 9%.

It may also be possible to land a bargain in Birmingham as average house prices there stand at £228,000, based on recent Office for National Statistics data, below the national average.

Here are some of the other reasons to choose Birmingham for your buy-to-let mortgage:

• It has five universities and a student population of over 80,000
• The city is a tourist hotspot as the fourth most visited city in the UK
• Property and rental prices are forecast to rise there
• It continues to benefit from ongoing regeneration with the Big City Plan

Average mortgage sizes in Birmingham

The amount you would need to borrow to get a buy-to-let mortgage in Birmingham will obviously vary based on the range of factors that will influence the purchase price. However, to use average figures, Birmingham’s average property purchase price of £228,000 means that a typical buy-to-let mortgage amount in the city would be £171,000.

To get a buy-to-let mortgage of this size, you would typically need at least 25% of the property’s value to put down as a deposit, which in this case would be £57,000.

Best areas for a buy-to-let mortgage

The best rental yields for buy-to-let mortgage holders in Birmingham can be found in the B29 postcode (Selly Oak & Bournbrook area) which is popular among students and young professionals. Here, gross rental yields are way above the citywide average, reaching 9.7%.

 Other potentially lucrative postcodes for landlords include B5, B9 and B18.

The table below shows some of the best locations based on rental yield:

Source: PropertyData

Compare buy-to-let mortgage deals for free

Now that you have done some research into the Birmingham market, you can compare buy-to-let mortgage rates for free and choose the deal you want in real time on Teito.

As part of our service, we will offer a free, no-obligation chat with a broker who specialises in the Birmingham buy-to-let market - choose your preferred option below to get started:

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Is Birmingham a good location for portfolio landlords?

It has always been a popular location for landlords who want to build a buy-to-let portfolio (four or more properties) as the UK’s largest cities are the hotspots for this demographic. According to data released by Simply Business, Birmingham is the third most popular place in the country to set up a property portfolio, behind only London and Manchester.

What are the most popular property types to invest in?

Some of the most popular property types to get a buy-to-let mortgage on in Birmingham include houses and maisonettes, with the Midlands city being named as one of the UK’s top three hotspots for these in a market survey carried out by Simply Business.

Moreover, houses of multiple occupation (HMOs) are also in demand among Birmingham landlords, with the city being named as the second most popular location for this property type, ahead of Bristol, Manchester and Cardiff, and behind only London.

Why choose Teito for your buy-to-let mortgage needs?

Now that you have researched the Birmingham property market, your next step should be to compare buy-to-let mortgage rates and deals, and you can do this for free on Teito.

When you source a mortgage with us, we will give you the option of speaking to a broker who specialises in the Birmingham buy-to-let market. Below you will find just some of the reasons why landlords choose our service for their mortgage needs:

• You can access the latest buy-to-let deals in seconds
• Face-to-face broker appointments are available in Birmingham
• We are 5 star-rated on leading review websites
• You can secure an agreement in principle in minutes

Ready to compare rates and deals and take advantage of a free, no-obligation chat with a buy-to-let mortgage expert in Birmingham? Get started here.