Is city living in Birmingham sustainable?
Posted by tomfromthepost on March 19, 2008
All of this should be prefaced with a disclaimer that I know next to nothing about this topic. But that’s never stoped me offering my opinion before, so here we go…
The other day I wrote a story about city living estate agents Stirling Ackroyd closing their Birmingham office, saying there wasn’t enough going on in the market to make it worth it.
As a city centre dweller and nominal business journalist this made me prick my ears up - especially with everything that’s been said about the credit crunch and the effects on the property market.
And frankly I’ve always wondered why we’re seeing more and more blocks of apartments being thrown up in Birmingham - the Orion building developments and the ones in Digbeth for a start - when things are supposed to be getting so tight. Any explanations?
Unsurprisingly, other estate agents I spoke to said there was nothing to worry about with the market in Birmingham. In fact they said there were still huge opportunities in the buy-to-let sector - good news for them at least I suppose if there’s plenty still going on.
They claimed this was down to the increased number of relatively wealthy people who would normally buy but were now leery of getting into it, and deciding to rent instead. But I can’t say I was completely convinced.
I mean I think it says something about the state of the housing market that a hack like myself, not exactly penniless, but hardly raking it in, can afford to live in the same apartment block as the Regional Managing Director of the company I work for (see here if I haven’t bored you with this anecdote before).
And our own landlord said he was thinking of selling because he wasn’t making enough from the flat on rent. If there are so many wealthy people looking to rent, why are the prices so low?
Is the pace of growth of city living sustainable, as the estate agents say? I suppose we’ll find out in the next year or so…
PS hat-tip to Praguetory for the tip-off for this story. Credity where it’s due.
March 19, 2008 at 10:02 pm
I always thought they were over-selling the ciy living idea. When I was buying a flat a number of people advised me to steer clear of the city centre as predictions were that prices would plummet faster there than in the suburbs.
Perhaps one of the big problems is that a lot of flats have been built in areas with the community infrastructure to support them (doctors, dentists, food stores, etc).
March 19, 2008 at 10:42 pm
I agree that I don’t think it would have been a good investment. But in terms of infrastructure, I’ve got a corner Tesco within five minutes’ walk, a Tesco superstore within 15 minutes’ walk, rail station, buses, shops and bars all easy walking distance… Very green if nothing else!
March 20, 2008 at 12:17 am
I have to admit when all this building started I thought it’ll be great when they over-stretch themselves, the market gluts, prices plummet and I can get a great flat in the city centre for less rent that Kings Heath. Nice to see you’re already living that dream.
March 20, 2008 at 7:40 am
I’m not going to comment on the sustainability of city development because I’ve no knowledge whatsoever on that. But I do find it galling that the council seems to want to have it both ways when it comes to giving permission for residential development and selling Birmingham as a city filled with entertainment and night life.
I know of two cases where permission was given for apartments to be built next to pubs (pubs that specialise in live music) and then the council gave in to complaints from residents with regards to noise.
The Fiddle & Bone is now closed and The Spotted Dog in Digbeth has had to curtail it’s live music. I know that you’re a pub fan and I hope that these two incidents are just oversight.
With regards to cost, I know the people who were the first to buy the canalside apartments have lost a lot of money. Whether this gives an indication on sustainability. I don’t know.