Birmingham projected to see highest property price growth between 2021-2025
Prices in Birmingham are forecast to grow 19.5% between 2021 and 2025, Manchester an 18.5% rise is predicted while Prime Central London will see an 18% growth. These key locations are predicted to outperform the UK national growth average of 14.5%.
Prime Central London
The acute housing undersupply issue in Greater London will be exacerbated by COVID-19 with new housing starts falling to an average of 12,500 pa over the next 5 years, compared with a housing need for 52,000 homes pa. This will underpin price and rental growth in the UK Capital.
Having already fallen in Prime Central London in 2020, prices and rents will begin to grow again in 2021. As the downturn begins to abate wealthy global investors will turn their attention to Prime Central London, one of the world’s most exclusive housing markets, as they did after the Global Financial Crisis.
House price change (%pa)
| 2021 | 2022 | 2023 | 2024 | 2025 |
| 1.0% | 5.0% | 4.5% | 4.0% | 3.5% |
Rental value forecasts (%pa)
| 2021 | 2022 | 2023 | 2024 | 2025 |
| 0.5% | 3.0% | 3.0% | 3.0% | 2.5% |
Source: JLL
Birmingham
Of all the housing markets that JLL monitors, Birmingham is forecast to see the strongest house price and rental value growth over the next 5 years.
HS2 and the 2022 Commonwealth Games are Important catalysts for growth in Birmingham. The city is also seeing a growing housing shortfall. However, Birmingham City Council is seeking to accelerate the regeneration of council owned assets to deliver new mixed tenure housing solutions including private sale, build to rent, student accommodation and later living solutions
House price change (%pa)
| 2021 | 2022 | 2023 | 2024 | 2025 |
| 0.0% | 4.0% | 5.5% | 5.0% | 5.0% |
Rental value forecasts (%pa)
| 2021 | 2022 | 2023 | 2024 | 2025 |
| 0.0% | 3.5% | 3.0% | 3.0% | 2.5% |
Source: JLL
Manchester
Some areas of Manchester will see price falls and some areas which will see price rises as demand for living in big cities recalibrates post-COVID.
This will result in house prices being flat in 2021 before growing strongly from 2022 onwards.
There is a limited availability of new homes to purchase in Manchester underpinning values.
House price change (%pa)
| 2021 | 2022 | 2023 | 2024 | 2025 |
| 0.0% | 3.5% | 5.0% | 5.0% | 5.0% |
Rental value forecasts (%pa)
| 2021 | 2022 | 2023 | 2024 | 2025 |
| 0.0% | 3.5% | 3.0% | 3.0% | 3.0% |
Source: JLL
