Property Market Intel

The Best Buy-to-Let Areas in Birmingham in 2023


Written by Lewis Ridley

Updated over a week ago

If you’re looking to invest in a buy-to-let in Birmingham but don’t know the area, it can be quite daunting trying to find a good area.

To help you out, these are the best buy-to-let areas in Birmingham based on 2023 data:

1. B9 – Bordesley Green
2. B8 – Ward End, Washwood Heath, Alum Rock
3. B5 – Digbeth
4. B1 – City Centre
5. B16 – Ladywood and Edgbaston Reservoir
6. B12 – South Digbeth
7. B2 – City Centre, Birmingham New Street
8. B3 – Jewellery Quarter
9. B24 - Erdington
10. B25 – Yardley

The following sections will dive into these areas in more detail.

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B9 – Bordesley and Bordesley Green

Bordesley and Bordesley Green sits east of Birmingham’s centre and is one of the best places for investors to look if they’re interested in buy-to-lets.

Despite being fairly close to the centre, the house prices here are currently hovering around £182,000, which is significantly lower than the average of £293,000.

This reasonably priced location therefore has very good rental yields. Something many landlords look for when investing in a new area. Currently, yields are sitting at 7% in B9 – much higher than the UK average.

Additionally, growth has been good in this area with prices increasing by 24.7% over the past 3 years.

B8 – Ward End, Washwood Heath, Alum Rock

North-east of Birmingham centre you B8, including areas like Ward End, Washwood Heath, and Alum Rock. This is a good area if you’re looking for buy-to-lets with good profits.

The house prices here are slightly higher than B9 but are still below the average, sitting around the £219,000 mark. This makes rental yields attract as well. Yields in this area are currently 6%, which is great for steady monthly cashflow.

Just be aware the areas around these parts of Birmingham are a little rough. They’re not the nicest of places but they offer good profits for landlords who are willing to invest.

B5 – Digbeth

Digbeth is a trendy location that has been quoted as one of the coolest places to live. The location is also a great place for buy-to-let investors as the yields are particularly high.

House prices are little more expensive here, sitting around the £245,000 mark. However, the rental yields are still 6% in some areas, providing steady monthly cashflow.

The main problem with Digbeth is the yearly growth. Despite being a trendy place, prices have decreased by -19% over the last 3 years.

So, if you’re looking for capital appreciation, it might be better to look elsewhere.

B1 – The City Centre

If you want to look for a good buy-to-let location in Birmingham, you don’t have to look much further than the city centre. With good yields and access to plenty of shops and transport links, this is a great postcode area to be investigating.

The city centre has prices that are more towards the average. Average house prices in B1 are around £275,000, but the yields are still good due to the higher room rental price.

Yields in B1 are currently 6.78%. Some property types will even yield you 7%, such as studios.

Just be wary of growth. It has been pretty flat over the past 3 years, actually decreasing by -0.8%.

B16 – Ladywood and Edgbaston Reservoir

B16 marks as another location in Birmingham good for buy-to-lets. B16 includes Ladywood and is just West of the city centre. Average asking prices are fairly high here, but rental yields still warrant a mention on this list.

The average high price in B16 is around £248,000. However, with an average asking rent price of £1,523, yields are still in the 6% for many property types.

Growth has been slow but steady in this area as well. Over the last 3 years, B16 has increased by 2.8%. Not bad but also not the best.

B12 – South Digbeth

B12 also includes Digbeth – a Birmingham area already mentioned on this list. B12 is just south and boarders a few other Birmingham areas as well. Due to its lower prices, good yields, and location, it makes for a decent place for buy-to-lets.

B12’s average house price is around £194,000. However, asking prices are pushing towards £248,000. Yields are still holding strong around the 6% mark, however.

Do bear in mind though, some areas within this postcode are getting yields in the 4% range. So, pick carefully if you’re looking for monthly cashflow.

B2 – City Centre and Birmingham New Street

B2 is location very similar to B1 in that it’s close to the city centre, if not in it. B2 includes the centre and Birmingham New Street Station. So, for landlords looking for buy-to-let properties with solid transport links, this is the postcode for you.

B2 has asking prices and sold prices over £200,000. Currently, the average price is around £215,000. Despite the higher Birmingham prices, yields are very strong here sitting at 7% for some property types.

With the great transport links and higher yields, this is a dream location for many buy-to-let investors.

B3 – Jewellery Quarter

B3 includes the Jewellery Quarter, and it sits just northeast edge of Birmingham’s ring road. of the city centre. This location is popular with young professionals and has undergone a lot of works over the last few years. Thus, making it a good place for BTL investors.

Average prices here slightly higher due to the premium properties. Currently, you can expect to pay in the region of £274,000 for a property in this postcode.

Because of the young professional population, however, yields are still great. You can achieve upwards of 5-6%. Growth is also on the rise, increasing by 3.3% over the last 3 years.

B24 – Erdington

Second to last, we have B24 which includes Erdington. This is one of the more rapidly growing locations in the city and has access to plenty of amenities and services. Making it perfect for tenants and landlords after a good buy-to-let location.

Prices here are affordable, with average prices sitting around the £213,000 at the time of writing this. Yields remain great around 6.15%. You can even achieve 7% for one-bed properties if that’s your investment preference.

Growth has been fantastic is this area as you can probably presume from its popularity. Over the last 3 years, the area’s prices have increased by over 14%. So, this could be a viable option for investors after capital appreciation.

B25 – Yardley

B25 includes locations like Yardley. Prices here are very affordable and growth paths seem to be on the up. The area isn’t the worst in Birmingham, but it also isn’t the best when compared against other locations, such as the Jewellery Quarter.

It’s also a little far away from the centre, so not ideal for young professionals.

Still, average house prices here are around £217,000. Yields are still holding strong around 5-6%. However, it does vary greatly on property type here. 2-bed properties achieve significantly more yield.

The area has experienced about a 10% increase in prices, however. So, growth is looking positive.

Summing it up

Birmingham has been a property hotspot for years due to great growth, cheap house prices, and high yields. Growth does appear to be slowing, but it still poses as a great location for buy-to-let investors.

The above list should help you decide where to look if you’re after a new buy-to-let venture. If you need any further advice about buy-to-let locations, see our knowledge centre for more.

Related Reading

Best areas for buy-to-let in the UK Best areas for buy-to-let in London Best areas for buy-to-let in London

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