While national headlines continue to focus on house prices, Birmingham’s rental market is quietly telling a different story – especially in Harborne.
As of January 2026:
- Average Birmingham rents are up by 5.1% year-on-year
- House price growth in the city has plateaued at just 0.7%
That difference – the gap between capital growth and rental returns – presents a rare opportunity for professional landlords looking to expand their portfolio or improve performance.
At Hunters Harborne, we’re helping landlords make smart moves during this strategic window – by sourcing high-demand properties, maximising yields, and ensuring full compliance with 2026’s evolving legislation.
Whether you already let in B17, or are considering a buy-to-let in Birmingham this year, this blog explains how to take advantage of Harborne’s rising rental demand and why now is a smart time to act.
Understanding the 2026 yield gap
The term yield gap refers to the difference between rental returns and house price growth. When rental income rises faster than property values, landlords benefit from:
- Better short-term cash flow
- Lower capital outlay per pound of income
- Greater leverage when using mortgages
- Improved long-term return on investment (ROI)
That’s exactly what we’re seeing in Harborne this winter.
Birmingham rental market January 2026: At a glance
- City-wide rent increase: +5.1% year-on-year
- Harborne rent increase: +6.3% year-on-year
- Average 2-bed flat rent in B17: £1,100/month
- Average 3-bed house rent in B17: £1,495/month
- House price growth (Harborne): +0.6% year-on-year
In short: rents are rising. Prices are flat. That creates yield and opportunity.
Why Harborne?
Located just three miles from Birmingham city centre, Harborne continues to attract a diverse mix of professional tenants, families and postgraduate renters.
Key attractions include:
- QE Hospital and University of Birmingham – large local employment base
- Green space and character housing – popular with relocating professionals
- Excellent schools and catchments – attracting young families
- Independent shops, pubs and restaurants – lifestyle-led renting
- Strong transport links via bus, cycle, and rail (University Station)
This combination of demand and infrastructure makes Harborne a high-yielding, low-void area for landlords targeting longer-term stability.
Professional lets Harborne: Who’s renting in 2026?
At Hunters Harborne, we’re seeing increased demand from:
Medical professionals
Doctors, nurses and researchers working at the QE, with reliable salaries and long-term contracts.
University staff and postgrads
Highly educated, low-risk tenants often seeking 12–24-month leases close to work.
Hybrid city workers
Professionals commuting into Birmingham or working partly from home. They favour modernised homes with home office space, parking, and outdoor areas.
Families relocating from other UK cities
Priced out of London and Manchester, many choose Harborne for its blend of education, green space and city access.
These tenants are often willing to pay a premium for quality, making property presentation and management essential to yield.
What types of properties are performing best?
2-bed and 3-bed houses near Harborne High Street
Typically achieving 5.5%–6.2% gross yield, especially with modern kitchens and low-maintenance gardens.
Purpose-built flats in secure blocks
Attractive to medics and young professionals. Popular roads include Greenfield Road, Clarence Road and St Peter’s Road.
Victorian terraces with character
Increasingly popular with sharers and hybrid renters, especially if upgraded with good EPCs and insulation.
HMOs near the university or hospital
Still delivering strong returns, but must be compliant with 2026 safety and licensing rules.
Landlord compliance Birmingham 2026: What’s new?
Rental yields may be rising, but so are legal expectations.
With the Renters’ Rights Act 2025 now entering its first full year of implementation, all landlords must:
- Switch to periodic tenancies for new lets
- Register properties on the National Property Portal
- Join an approved landlord redress scheme
- Serve only evidence-based possession notices
- Ensure their property meets Fitness for Human Habitation (FFHH) standards
Failing to meet these requirements may result in:
- Fines
- Tenant compensation
- Difficulty regaining possession
- Legal disputes that eat into your yield
Property management B17: What Hunters handles for you
Our Fully Managed service is designed for landlords who want performance without the paperwork.
Here’s how we support compliance and profitability:
Pre-let preparation
- EPC and safety certificate checks
- Advice on upgrade priorities
- Staging for high-rent tenants
Tenant sourcing and vetting
- Full referencing
- Income and right-to-rent checks
- Lease preparation with new legal clauses
Digital compliance
- Portal registration
- Document uploads
- Record-keeping for FFHH and tenancy timelines
Repairs and inspections
- Trusted local contractors
- Regular condition reports
- Proactive maintenance to protect yield
Arrears and possession
- Early rent chasing
- Legally correct Section 8 notices
- Support through dispute or eviction (if required)
What return can Harborne landlords expect in 2026?
Let’s run a basic example:
Purchase: 3-bed semi, modernised, £310,000
Rent: £1,495/month
Gross annual rent: £17,940
Gross yield: 5.8%
If house prices begin climbing again in 2027–2028, capital appreciation stacks on top of this, potentially pushing total ROI over 8–9% annually.
And remember: rental growth is outpacing inflation – providing real income, not just paper gain.
Buy-to-let Birmingham 2026: Is now the right time?
With interest rates stabilising and demand for quality rental homes increasing, many landlords are asking:
Should I expand my portfolio now, or wait for the next price rise?
Our answer: buy in Harborne now – while prices are stable and rents are rising.
This lets you:
- Lock in a high-performing asset
- Avoid bidding wars later in the year
- Take advantage of lower competition
- Position yourself for capital gains when the next growth cycle begins
How to maximise your Harborne rental yield in 2026
Upgrade strategically
Focus on:
- EPC improvements
- Low-maintenance finishes
- Good Wi-Fi, sockets and lighting for WFH tenants
Let to professionals
Longer tenancies, higher rents and fewer issues. Letting to medical and academic professionals raise monthly income by 8–12%.
Stay compliant
Every penalty, delay or dispute eats into your yield. Letting through a regulated agent like Hunters Harborne reduces that risk.
Avoid voids
We aim to re-let within 7–10 days of notice, protecting income and keeping your portfolio stable.
Final thoughts: Harborne’s quiet advantage
When the property market is flat, rents do the talking – and in 2026, Harborne’s message is loud and clear.
- High rental demand
- Limited stock
- Stable prices = better entry points
- Professional tenant base
- Long-term growth fundamentals in place
If you’re a landlord in Birmingham, or looking to invest in a high-yield, low-risk area, now is the moment to explore what B17 can do for your portfolio.
Book your free 2026 rental review with Hunters Harborne
Let’s assess your current property, spot growth opportunities, and show how our Fully Managed service can increase your income and reduce your risk. Contact us
