Shared houses, licensed from three tenants
Every HMO in Birmingham with three or more tenants from two households needs a licence, and a new one needs planning permission, so we source licensed houses with a lawful history.
HMO investment → Birmingham property investment
Property Investment in Birmingham
Buy-to-let and HMO property sourced across Birmingham, from Selly Oak and Harborne to Erdington and the Jewellery Quarter, with the city's licensing and Article 4 rules checked before you buy.
Birmingham is the largest city we cover, with more than 1.1 million residents, five universities and major employers in the centre. Every shared house with three or more tenants from two or more households needs a licence, and rented homes in 25 wards need one too.
- Licensing checked by ward
- Article 4 rules checked
- Fee payable on completion only
- Budgets from £20,000
Birmingham's property market in numbers
Official averages for the city council area.
| Measure | Birmingham average |
|---|---|
| All property types | £234,000 |
| Terraced house | £222,000 |
| Semi-detached house | £275,000 |
| Flat or maisonette | £145,000 |
| Monthly private rent | £1,099 |
Source: Office for National Statistics house price and private rent figures for the Birmingham City Council area, which includes Sutton Coldfield but not Solihull, Smethwick or West Bromwich.
What drives rental demand
The University of Birmingham's Edgbaston campus is the city's biggest student draw. Aston University and Birmingham City University's Eastside campus are in the city centre, University College Birmingham is beside the Jewellery Quarter, and Birmingham Newman University is at Bartley Green.
The Queen Elizabeth Hospital Birmingham sits next to the university in Edgbaston, close to Harborne and Selly Oak. HSBC UK has had its head office at Centenary Square since 2018, among a cluster of professional firms in the centre.
The West Midlands Metro runs from Wolverhampton through the city centre to Edgbaston, and its Eastside extension reached Millennium Point in April 2026. HS2's first services, between Old Oak Common and Birmingham Curzon Street, are now expected between 2036 and 2039, so we price deals on today's rents rather than future rail.
Which council? It changes the rules
A B postcode does not always mean Birmingham City Council.
| Area | Council | What that means |
|---|---|---|
| Selly Oak, Edgbaston, Harborne, Erdington, Kings Heath, Jewellery Quarter, Sutton Coldfield | Birmingham City Council | Article 4 and additional HMO licensing citywide; selective licensing in 25 wards |
| Solihull, Shirley, Chelmsley Wood, Castle Bromwich village | Solihull Council | Its own rules, separate from the city's |
| Smethwick, West Bromwich, Oldbury | Sandwell Council | Its own rules, separate from the city's |
| Halesowen | Dudley Council | Its own rules, separate from the city's |
Sutton Coldfield is part of Birmingham, while Solihull is not, and HS2's Interchange station near the NEC is in Solihull. We confirm the council for every address, because Birmingham's licensing schemes stop at the boundary.
Areas we source in Birmingham
Six parts of the city, each with a different tenant and a different set of checks.
Selly Oak and Bournbrook
Victorian and Edwardian terraces next to the University of Birmingham, mainly let to students. Bournbrook and Selly Park ward is in the selective licensing area.
Edgbaston
Victorian villas, conversions and purpose-built flats near the university and the QE hospital. Postgraduates, medical staff and professionals; both Edgbaston wards are in the selective scheme.
Harborne
Victorian and Edwardian terraces and inter-war semis around the high street. Young professionals and medical staff, outside the selective licensing wards.
Erdington
Terraces and inter-war semis in the north of the city, mostly family lets. Erdington ward is outside the selective scheme; neighbouring Stockland Green and Gravelly Hill are inside it.
Kings Heath
Edwardian terraces around a busy high street in the south of the city, popular with young professionals and couples. Outside the selective scheme.
Jewellery Quarter and city centre
Converted industrial buildings and new apartment blocks, let to young professionals and some students. Both wards are in the selective scheme, and leasehold terms need close checks.
Two common Birmingham property types
Whole-house lets to professionals
Harborne, Kings Heath and Erdington suit couples and young families renting a whole house, and all three sit outside the selective licensing wards.
Buy-to-let investment advice →What a Birmingham purchase costs
Based on the city's average prices.
| Example | 25% deposit | Stamp duty |
|---|---|---|
| Average flat, £145,000 | £36,250 | £7,650 |
| Average terrace, £222,000 | £55,500 | £13,040 |
| Average semi, £275,000 | £68,750 | £17,500 |
These include stamp duty at the additional-property rates. In the 25 selective licensing wards every rented home needs a licence, and HMOs need one anywhere in the city, so we add licensing to the figures for each deal alongside legal, survey and lender fees.
Birmingham's rules on rented homes
Three layers apply. Since 8 June 2020 an Article 4 direction across the whole city has required planning permission to turn a family house into a small HMO. The council's policy then refuses new HMOs where they would make up more than 10% of homes within 100 metres, would leave a family house sandwiched between two HMOs, or would create a run of three or more in a row.
Since 5 June 2023 additional licensing has covered every HMO in the city with three or more people from two or more households, on top of mandatory licensing for larger houses. Selective licensing in 25 of the city's 69 wards, including Edgbaston, Bournbrook and Selly Park, Ladywood, and Soho and Jewellery Quarter, requires a licence for other privately rented homes. Both schemes run to 4 June 2028.
In practice most investors buy an HMO that is already licensed and has a lawful planning position, rather than converting one.
A general summary, not legal advice. Check the council's ward list and planning records for a specific address.
Nearby and related
Start a Birmingham brief
Tell us your budget, the part of Birmingham you have in mind and the kind of let you have in mind. We will tell you honestly what is realistic once licensing is counted.
Birmingham property investment questions
Is Birmingham a good place to invest in property?
For the right property, yes. It is the largest city we cover, with five universities, a major teaching hospital and a growing professional workforce in the centre. Licensing applies to every shared house and to rented homes in 25 wards, so we build those costs into the figures before recommending a deal.
Do I need a licence to rent out a house in Birmingham?
It depends on the property and the ward. Any HMO with three or more people from two or more households needs a licence anywhere in the city. Other rented homes need a selective licence if they are in one of the 25 designated wards. Both schemes run to 4 June 2028.
Can I convert a house into an HMO in Birmingham?
Only with planning permission, which has been needed across the whole city since 8 June 2020. The council refuses new HMOs that would push the share of HMOs above 10% within 100 metres, sandwich a family house, or create a run of three in a row.
Is Solihull part of Birmingham?
No. Solihull, Shirley and Chelmsley Wood are in Solihull Council, and Smethwick and West Bromwich are in Sandwell. Sutton Coldfield, on the other hand, is part of Birmingham City Council, so Birmingham's licensing rules apply there.
Will HS2 change the Birmingham property market?
Not soon. The first HS2 services, between Old Oak Common and Birmingham Curzon Street, are expected between May 2036 and October 2039, with trains reaching Euston later. That is too far away to rely on, so we judge deals on today's rents and prices.
Which parts of Birmingham suit student lets?
Selly Oak and Bournbrook, next to the University of Birmingham, are the established student areas, with postgraduates and medical students also renting in Edgbaston. The city-centre universities draw students to flats around Eastside and the Jewellery Quarter.