Cheaper Rent in a Worse Area or Pay More for a Better Location?
As a tenant, one of the biggest questions you’ll face is whether to save money by choosing a cheaper property in a less desirable area or stretch your budget for a better location.
It’s not a simple decision. Your choice can affect not only your monthly finances but also your quality of life, career opportunities, and even long-term wellbeing.
1. Financial Considerations
Cheaper Rent in Less Popular Areas
Opting for a property in neighbourhoods like Handsworth, Erdington, or Northfield often means lower monthly rent. A two-bedroom flat in these areas can be hundreds of pounds cheaper compared to a similar property in the city centre. That money could be redirected towards savings, debt repayment, or lifestyle choices such as travel or leisure.
However, it’s worth factoring in the hidden costs. Properties in these areas may be older, with higher heating bills due to poor insulation. You may also spend more on petrol, public transport, or even car insurance, since some outer-city postcodes carry higher premiums.
Higher Rent in Prime Locations
Living in the Jewellery Quarter, Harborne, or Edgbaston comes at a premium, but you may actually save money in other ways. Proximity to work can cut commuting costs, while modern apartments often include gyms, concierge services, and efficient heating systems. You also gain intangible value in convenience — less travel, more time for hobbies, and reduced stress.
Tip: When comparing rents, create a full monthly budget that includes utilities, commuting, and lifestyle costs. Sometimes a £200 rent increase is offset by £150 saved elsewhere.
2. Quality of Life
Cheaper Areas: Compromises and Trade-offs
Neighbourhoods with lower rent can sometimes mean fewer amenities. You may have limited access to parks, restaurants, or entertainment options. Safety is also a consideration — certain areas of Birmingham report higher crime rates, which can affect peace of mind.
That said, many cheaper areas also offer tight-knit communities and great value for money if you’re willing to compromise on location. For example, Northfield offers good access to countryside and local shops, making it appealing to some families despite being further from the city centre.
Better Areas: Convenience and Comfort
Paying more for rent often means living in a neighbourhood with more to offer. The Jewellery Quarter is packed with independent cafes, bars, and cultural venues. Harborne is prized for its “village feel,” green spaces, and family-friendly schools. Edgbaston combines leafy residential streets with proximity to the city centre.
These areas tend to feel safer, have stronger infrastructure, and offer a richer day-to-day experience. For many renters, this improved quality of life more than justifies the higher cost.
3. Commuting and Transport Links
Longer Commutes with Cheaper Rent
If you live further out — say in Kings Norton, Sutton Coldfield, or Perry Barr — you’re likely to face longer commutes. While Birmingham has good train and bus connections, travel times can easily add 30–45 minutes each way. Over the course of a year, this can translate into days spent commuting.
Travel costs also add up quickly. A monthly train pass from Sutton Coldfield to Birmingham New Street is an extra expense that could rival the savings you make on rent.
Central Living with Higher Rent
Renting in central Birmingham, Digbeth, or nearby districts can eliminate the need for long commutes. Many young professionals in the city centre walk or cycle to work, cutting transport costs and saving precious time. With the city’s ongoing investment in trams and cycle routes, central living is becoming even more convenient.
4. Future Prospects and Stability
Cheaper Rent for Short-Term Savings
If you’re renting while saving for a house deposit, cheaper rent in areas like Erdington or Great Barr could help you build your savings faster. These areas are less expensive but still offer good links to the city.
The downside is that these neighbourhoods may not see as much regeneration or long-term growth, so your lifestyle may not improve significantly while you’re there.
Paying More for Long-Term Value
Better neighbourhoods often attract ongoing investment. Digbeth is being transformed into a cultural and creative hub, while Edgbaston continues to benefit from developments around the cricket ground and university. Renting in such areas can provide greater stability and a more enjoyable environment over the long term.
5. Lifestyle Factors and Personal Circumstances
Young Professionals: Proximity to nightlife, offices, and gyms often makes higher-rent areas like the Jewellery Quarter or Digbeth worth it.
Families: Safety, good schools, and green spaces are top priorities. Areas like Harborne and Sutton Coldfield are popular, even at a premium.
Students: Cheaper rents in Selly Oak or Perry Barr are attractive, especially with student housing options nearby.
Remote Workers: With less need to commute, outer-city areas with cheaper rent can make sense, provided internet speeds and home space are suitable.
6. Case Study Scenarios
Scenario 1: A young professional working in Colmore Row. Living in the Jewellery Quarter at £1,200/month means walking to work, saving £150/month on transport, and enjoying a buzzing lifestyle.
Scenario 2: A couple saving for a deposit. They choose a two-bed in Erdington for £750/month instead of £1,100 in Harborne. Over two years, they save nearly £8,400 towards their deposit — but they sacrifice on nearby restaurants and quality schools.
Scenario 3: A family with children. They pay more to live in Harborne, attracted by excellent schools, parks, and community feel. The higher rent is justified by their long-term stability.
Final Thoughts
For renters in Birmingham, the decision between cheaper rent in a worse area or higher rent in a better location comes down to priorities. If you’re focused on savings and short-term financial goals, opting for a more affordable area can make sense. But if lifestyle, convenience, and long-term wellbeing matter more, paying extra for a desirable neighbourhood could be a smart investment in your quality of life.
When weighing your options, look beyond just rent. Consider transport, safety, amenities, and future prospects. Sometimes, what looks expensive on paper can be cost-effective in reality when all factors are taken into account.
Birmingham offers a diverse range of neighbourhoods, each with its own strengths. The key is finding the balance that works for your personal circumstances and long-term goals.