Investing in Buy-to-Let Properties in Solihull

In the West Midlands, Solihull is often referred to as a ‘town in the country’ and is often described as offering both a city and a country lifestyle. Does that mean Solihull is also an ideal location for property investors?

What are the benefits of investing in Solihull?

Solihull is both a borough and a town. From Birmingham suburbs, the borough stretches into rural Warwickshire. The borough also includes Castle Bromwich, Dorridge, Hampton in Arden, Hockley Heath, Knowle, Marston Green, and Shirley as well as Solihull itself.

A small market town, Solihull has grown into a large metropolitan borough with a population of around 225,000. The West Midlands region includes Solihull as one of its boroughs.

Because Solihull is close to Birmingham, it is ideal for people who need convenient access to Birmingham for work or business. Birmingham city center is around 7 miles from Solihull town center. In normal traffic, the train or road journey to Birmingham takes around 20 minutes.

Solihull is well connected to the Midlands and the rest of the country. There are direct connections to the M6, M5, M40, and A45 via the M42 motorway. There are several stations around the borough that offer direct trains into Birmingham city center and into London Marylebone or Euston in around 1 hour 50 minutes.

Also within Solihull is Birmingham Airport. There is also Birmingham International Railway Station and the National Exhibition Centre, or NEC. During a normal year, the NEC hosts about 500 events and attracts around 2.3 million visitors.

As a result of its high added value employment, Solihull’s economy is strong. Due to its well-paying jobs, the area has a buoyant property market. Businesses in Solihull include automotive, advanced manufacturing, scientific and technical, transport and logistics, financial services, and business and professional services.

Blythe Valley Park, Fore Business Park, Solihull Business Park, The Green Business Park, Cranmore Industrial Estate, and Monkspath Business Park are among the modern business parks in the area.

Land Rover cars were born in Solihull, the birthplace of the motor industry. There are many jobs in Solihull thanks to Jaguar Land Rover’s manufacturing plant. Located here is Norton Motorcycles’ new global headquarters.

The convenient location of Solihull between city and country, strong employment opportunities, and high quality local schools contribute to its high rankings in ‘best places to live’ surveys. Solihull residents are quick to point out that Solihull isn’t technically part of Birmingham and consider it to be more posh. As a result, the property market in the area is supported and property is in high demand.

Solihull is undergoing a number of developments that could boost the economy and the property market. Solihull’s UK Central Solihull programme aims to attract increased investment and business.

In the future, Solihull’s transport connections will be even better. The HS2 high-speed rail line will have a new interchange station. Upon completion, Solihull will be just 45 minutes from London by 2033. West Midlands Metro is planning to build a tram line to connect Birmingham city center with Solihull, the airport, and the NEC within the next few years. This will make Solihull an even more attractive commuter destination.

5,000 homes, a primary school, a new hotel, cafes, restaurants, and offices are planned for the National Exhibition Centre.

The Arden Cross project aims to develop a leading global destination for innovation, business, commerce, learning, and living on a 140-hectare site. Up to 27,000 new jobs could be created, and 6 million square feet of office space could be provided.

Property values in Solihull

Overall, Solihull is a higher-priced property location. Solihull’s property market is more expensive than that of much of the West Midlands. The average house price in Solihull is around 10% higher than the national average.

Solihull’s average house price is currently around £313,400, according to HM Land Registry data.

Solihull has some very expensive streets, with homes worth more than £1 million in some areas. Solihull, however, offers more affordable investment properties. Solihull investment properties start at around £80,000 according to Zoopla listings.

The past five years have seen just over 39% growth in property values in Solihull according to research from PropertyXYZ.

Rental demand in Solihull

Solihull’s property market offers opportunities to rent to locals and workers. Solihull is also a popular place to live for commuters to Birmingham, Coventry, and other parts of the West Midlands. For those who cannot afford to buy a home, Solihull lacks good value rental accommodation, as do many other high-priced areas.

According to Home.co.uk’s Solihull Market Rent Summary, landlords here can earn an average rent of £1,460 per month. A one-bed Solihull rental property rents for £850 per month, a two-bed Solihull rental property rents for £875 per month, a three-bed Solihull rental property rents for £1,225, a four-bed Solihull rental property rents for £1,650, and a five-bed Solihull rental property rents for £2,250.

Solihull buy-to-let yields may be of interest to investors. Birmingham’s B36, B37, B40, B90, B91, B92, B93 and B94 postcode areas cover Solihull and the surrounding area. According to property xyz, investors can find an average long-let gross yield of 4.6% in B36, 3.9% in B90, 3.4% in B91, 4% in B92, and 2.2% in B93.

Solihull Metropolitan Borough Council provides local services in the Solihull area. HMO buyers and tenants in Solihull can find out about the licenses that are needed from Solihull Metropolitan Borough Council.

Investing in Solihull

Population: 225,000 approximately
Average house price: £313,400

The property market in Solihull provides many different opportunities for investors. Generally, the west side of the borough near Birmingham is more densely populated and suburban. There are better transport links, more local amenities, and more large workplaces nearby, all of which are likely to be of interest to tenants. It is more rural and semi-rural on the east side of the borough. It consists of several small towns and villages and has a lot of green space, but amenities and access aren’t great.

Solihull properties include flats and apartments, detached and semi-detached houses, and bungalows. There are a lot of family-sized properties with gardens in Solihull.

Solihull town centre is located on the western side of the borough. Elmdon Heath, Blossomfield, Sharmans Cross and Shirley are among its suburbs. For those who work in Birmingham city center, these areas also benefit from a wide range of amenities in Solihull town center. Property prices in these areas tend to be mid-range.

The districts of North Solihull include Bickenhill, Castle Bromwich, Elmdon, Fordbridge, Marston Green, and Sheldon. Travelers and commuters can also easily access Birmingham city center and the motorway network from these areas. Birmingham International Station, Birmingham Airport, and the National Exhibition Centre are also nearby. As part of the UK Central programme, regeneration is taking place in areas such as Chelmsley Wood and Kingshurst. Solihull has some good value property areas in these areas.

Balsall Common, Bentley Heath, Dorridge, Hampton in Arden, Hockley Heath, and Knowle are all located east of Solihull, across the M42 motorway. Local amenities are available in these semi-rural or rural areas. The Midlands are popular places to live for those who travel and work there. In Dorridge and Hampton in Arden, commuters have their own railway stations. Property prices in these areas are generally higher.

Some areas to the east of Solihull will be affected by the construction of the HS2 high-speed railway line, so property investors should keep this in mind.