Small Heath Delivers Birmingham's Highest Rental Yields for Property Investors

Small Heath posted the highest rental yield of any Birmingham suburb at 8.3 per cent in the first half of 2026.

The result stands out because mortgage rates have stayed above 4 per cent and many buyers remain priced out of central postcodes. Landlords who bought two years ago now cover their costs faster than owners in Edgbaston or Harborne, where yields sit closer to 5 per cent. Local agents report steady demand from shift workers at the nearby Birmingham Wheels Park and from families moving along the Coventry Road corridor.

Streets drawing the cash

Properties on Herbert Road and nearby Jenkins Street have changed hands quickest. Both roads sit within walking distance of Small Heath Park and the weekly market on Coventry Road. Investors cite quick re-letting times and lower purchase prices compared with terraces closer to the city centre. Birmingham City Council’s Empty Homes programme has also brought several long-vacant houses in the area back into use, adding supply without flooding the rental pool.

July 2026 data compiled by the Birmingham Rental Index shows average sale prices in Small Heath at £172,000 for two-bedroom terraces. The same properties let for £1,195 per month, producing the 8.3 per cent gross yield. City-wide the average yield stood at 5.4 per cent on the same date. Only Bordesley Green came close, at 7.1 per cent.

What investors should check next

Buyers eyeing the area should verify current council tax bands and recent void periods on any street they shortlist. Speaking to two or three local letting agents on Coventry Road gives the clearest picture of achievable rents before offers are made. Those who move quickly can still secure stock before the autumn letting season begins.