How has urban change created opportunities in Birmingham?

Economic Growth in Birmingham

Birmingham’s economy has grown a lot in recent years because of several important reasons:

• Big companies (called Transnational Corporations or TNCs) like Ford and BMW have been attracted to Birmingham because of its strong background in metal manufacturing.
• Food companies like Kraft have also invested in the city.
• Birmingham is well known for producing high-quality, small-scale goods, such as jewellery.
• There are now better rail links to London and the South East.
• Birmingham International Airport has grown and now has flights to Asia and the Middle East.
• The finance and business services sector is experiencing rapid growth.
• Birmingham has many skilled workers, which attracts companies.

Why Transnational Corporations (TNCs) Invest in Birmingham

TNCs are attracted to Birmingham because:

• There is a skilled workforce that doesn’t cost as much as in other cities.
• There is space for new developments, especially on brownfield sites (land that used to have factories or houses, now cleared and ready to build on).
• The government has established enterprise zones and offers incentives or rewards for businesses to attract investment.

Gentrification in Birmingham

Gentrification occurs when a previously poor or run-down area is improved and becomes more attractive to wealthier individuals.

An example is Moseley, a suburb built in the 1800s for wealthy business owners. After World War II, the large houses were divided into smaller flats, and the area began to decline. However, since the 1980s, people have started moving back in, renovating the old Victorian houses, and making the area popular again.

Moseley is now attractive because it is:

• Only 3 miles from Birmingham city centre
• Close to the University of Birmingham and Queen Elizabeth Hospital
• Full of large homes and tree-lined streets
• Popular with people from different socio-economic backgrounds

Studentification in Birmingham

Studentification happens when a large number of students move into a neighbourhood. This often changes the area’s character, primarily when big old houses are split into flats for student living.

Birmingham has three universities:

• University of Birmingham (Edgbaston)
• Aston University (Aston)
• Birmingham City University (Perry Barr)

Since 2000, these universities have expanded, resulting in increased demand for student housing, particularly in areas such as Selly Oak.

Impacts of Studentification:

• Older residents may move out and be replaced by younger, mostly single students.
• Shops and services change to match student lifestyles and spending habits.
• Some properties are well-maintained, but others become poorly maintained, depending on the landlord.
• House prices go up, and many homes are turned into shared student houses.
• There can be more noise, litter, and anti-social behaviour, and fewer owner-occupiers living in the area.

Gentrification vs Studentification