Property Investment in Derby

Known as the most central and one of the smallest cities in the United Kingdom, Derby may not have been a location you thought of investing in before. But, it is also one of the cheapest cities for buy-to-let properties and has a thriving economy and a manufacturing reputation. Derby has a population of about 247,000, which is predicted to increase to 312,000 by 2037. Meaning that property investment in Derby is a great option to consider.

Why invest in Property?

Investors should be drawn to Derby since it is one of the leading manufacturing cities in the UK. This means that a lot of people work here and there are top employers in the area.

Property Investment in Derby | Local employers 

This includes Rolls Royce, Bombardier Transportation, and Toyota Motor Manufacturing UK. In addition, there is the University Hospitals of Derby, Derby City Council, and Burton NHS Foundation Trust. Another big employer for the city is the University of Derby. 

Property Investment in Derby | Transport

Indeed, those that come to work in Derby need somewhere to live. But, there are also workers that choose to live in Derby and commute. This is due to having good transport links. In addition, it is close to the M1, as well as the A50 and A38. Let’s not forget that the future is looking bright with the East Midlands HS2 Hub, which is going to make it easy to travel between Nottingham and Derby.

Property Investment in Derby | Facilities

There are a lot of attractions, facilities, and amenities that draw people to Derby. This includes there being over 200 stores at Intu Derby, as well as modern eateries. Those looking to enjoy a social life can also enjoy Friar Gate. There is everything from bars to art in the Cathedral Quarter. Other interesting attractions in the city include Pickford’s House Museum, Derby Cathedral, Royal Crown Derby Museum, and Derby Museum and Art Gallery. The City Centre Masterplan 2030 proposed by Derby City Council means everything from new jobs to homes. There is also the Becketwell scheme, which is going to be appealing to investors. Many students come to Derby to study with the university attracting around 11,300 people. The campus is situated in Allestree, as well as there being one at Buxton. But, you will find students live in a variety of places that suit their budget. This can include being in the city centre, Uttoxeter New Road, and Ashbourne Road.

What are the Property Values?

You can expect lower property prices in Derby when compared to the national average. This follows a similar trend throughout the East Midlands. In particular, you will notice lower prices in Derby compared to Derbyshire. The HM Land Registry finds that the average house price is £247,000 when you look at England. But, the average price is lower in Derby at£159,403. Of course, it is possible to find very cheap property in Derby. For example, there are properties that can start at £46,000. Statistics also show that house prices in Derby are rising. Namely, this is around 200 percent in the last 20 years.

Is There Rental Demand?

The answer to this question is yes. In particular, renting is necessary for students that are attending the University of Derby. There is also a demand from local residents, as well as those that are coming to the city to work. You can expect the average rent in Derby to be around £696 per month. For instance, if you become a landlord of a one-bed property in the city, this can bring in around £493 PCM. Alternatively, if you have a larger property with three bedrooms, this can offer about £773 PCM. Of course, properties even bigger than this are going to bring in more money for landlords each month. You can also look forward to strong yields on buy-to-let properties in this city. For example, some areas are going to boast about a 4.8 per cent annual yield.

What are the Hotspots for Investment?

Are you interested in investing in Derby? Let’s take a closer look at some of the hotspots around the city.

Derby City Centre

The population in the city centre of Derby is around 21,200. But, this is likely to increase in the future since Derby City Council is proposing to build 2,200 new homes. This development is estimated to arrive by 2028. Currently, the average house price in this area is around £130,000 to £170,000. Moving out of the city centre, you are going to find traditional terraces, as well as some properties that have been made into apartments. You can expect good yields of 4.2 per cent in the DE1 postcode.

North Derby Suburbs

The average house price in North Derby suburbs is going to be higher especially compared to areas such as the city centre. The average price you can expect is between £250,000 and £350,000. It is also not uncommon for some properties to be priced above this estimation. The population sits at around 56,000 in the North Derby suburbs. This is a desirable place to live since it has good access for commuting. Those that like the countryside can easily access the Derbyshire Dales too. This includes Oakwood, Derwent, Allestree and Little Chester. There are villages such as Little Eaton and Duffield just to the north. These are popular villages and you will find some expensive property here. As a result, the yield is around 2.8 per cent.

East Derby Suburbs

When we talk about the East Derby Suburbs, this is referring to areas such as Wilmorton, Alvaston, Pride Park, Chaddesden and Spondon. There is a population in the East Derby Suburbs of around 75,000. These areas can be attractive to live since it is easy to get into Derby and Nottingham, as well as access the M1. The average house price to expect in the East Derby suburbs can vary from £130,000 to £250,000. For example, Chaddesden is home to housing estates, as well as Spondon being attractive for having a railway station. In addition, there is redevelopment planned for the British Celanese industrial site. Yields can be enticing in East Derby Suburbs since they can vary from 4.5 to 4.8 per cent. This includes in DE21, DE24 and DE72.

South Derby Suburbs

With Rolls Royce and Bombardier being located in the south of Derby, this means that workers are looking for places to live nearby. The suburbs include Rose Hill, Alleton, Normanton, Sinfin and Stenson Fields. The population is around 62,300. If you are looking for more affordable property for buy-to-let, you are going to find them in the inner-city areas. The price will rise in places like Chellaston. The average house price for South Derby suburbs can be around £120,000 to £190,000. When it comes to yields in the south of Derby, it can vary from 3.7 per cent to 4.8. per cent. This is in postcodes such as DE23, DE24 and DE65.

West Derby Suburbs

The population in West Derby Suburbs is around 32,400. This includes areas like New Zealand, Mickleover and California. You can expect the average house price to be around £240,000 to £280,000. But, yields can be good and in DE3, DE22 and DE23, it is around 4.7 per cent. Areas to note include Littleover and Mickleover. They have expanded over the years and are now popular places for families to live. In addition, there is access to the A38 for commuting.