16th September 2016
In my experience there are three main areas in Birmingham which are particularly popular with HMO investors.
The first one is right next to our office in the Edgbaston area. The reason this is such a popular area for HMO is probably down to a couple of things: the first one being the style of properties. these are predominantly Victorian with least two reception rooms and a usable attic.
The Edgbaston area lends itself nicely to HMO is because of its proximity to Birmingham City Centre. Edgbaston spans a wide area but on its edges backs onto the Hagley Road on one side and the Bristol Road on the other; both of which are main arterial roads into Birmingham City Centre.
Another area which is very popular for HMOs in Birmingham is to be found just north of Birmingham city centre. Leave Birmingham heading North and the next main area you find just past Spaghetti Junction in Erdington. In terms of property styles, Erdington is very similar area to Edgbaston. Large Victorian houses, mostly with accommodation across three levels lends itself very easily to converting to HMOs with five or more bedrooms.
Location wise Erdington is also very conveniently situated for Birmingham City Centre. Historically north Birmingham has always been slightly less expensive and South Birmingham and indeed in terms of rents and prices for rooms this is definitely the case. however in terms of property values I would say the prices are continuing to rise and on a par with Edgbaston. what this means if you are thinking of buying an HMO in Erdington is you need to carefully researched the ceiling price for room rates and make sure that you're not trying to exceed this ceiling price.
In case you are thinking of investing in property to be turned into an HMO in Bournville, which is the last of the three popular areas I mentioned favoured by investors purchasing properties to be converted into HMOs in Birmingham you need to be aware of just one thing. Bournville and Selly Oak are affected by something called Article 4. If you're not sure what this is I suggest you Google it but in a nutshell it is an additional planning control which restricts existing properties being converted into HMOs.
So whilst Bournville is a great area in terms of attracting professional sharers and is well situated with good rail links into the centre of Birmingham, you need to bear Article 4 in mind.