Derby Buy-to-Let Guide

According to the Zoopla House Price Index, Derby has an average property price of £230,606. The national average is £261,500. Zoopla observed both figures over the same period of time, making Derby 12% cheaper than the average UK property.

Let’s look at those Derby property prices in greater detail.

Firstly, detached houses are the most expensive property on average, costing £355,733.

Next up, semi-detached homes cost £211,892 on average.

Terraced houses cost around £161,119 on average. Finally, flats cost £123,471.

However, the Land Registry puts UK house prices at £287,546. Meanwhile, the same index puts Derby prices at £199,448 on average. These figures suggest Derby may be considerably cheaper than the national average.

UK house prices have risen 1.2% in the last year. However, Derby property prices have only risen by 0.2%. The East Midlands region has experienced 1.6% property growth. By those figures, the Derby housing market is underperforming. Learn more about how to make money from property with our free guide.

Derby prices are cheaper, but capital appreciation is much slower.

Still interested in a Derby property investment? Be sure to research different areas. This gives you the best chance of a healthy rental yield and capital growth.

Derby City Centre

The Derby city centre property market is less lucrative than other major cities. Investors can add new-build units and apartment conversions to their property portfolio. Terraced and traditional houses are available on the edges of the postcode. Some of these are now HMOs and blocks of flats.

The council plans to improve city living investment prospects with 2,200 new homes built by 2028.

Average Property Prices in Derby City Centre

The average property price in DE1 is £181,657.

Flats cost £139,540. Terraced houses cost £187,967. Semi and detached properties cost £226,278 and £280,000 respectively.

These statistics are accurate as per the Zoopla House Price Index.

Average Rental Yields in Derby City Centre

The average rental price in Derby city centre is £895.87 pcm (according to Houses for Sale to Rent).

The average rental yield in DE1 is 5.9%.

Derby’s eastern suburbs include the following areas:

• Pride Park
• Chaddesden
• Wimorton
• Spondon
• Borrowash
• Alvaston
• Alvaston Village
• Alvaston Moor

These areas allow easy access to the city centre and M1. They also connect to other cities like Nottingham and Loughborough in central England.

Chaddesden is Derby’s largest suburb. The area features several housing estates. Spondon is set for redevelopment due to the British Celanese industrial site. It also has a railway station that connects to Derby, Nottingham and the rest of the country. Borrowash is actually part of the Erewash area. But, it is still popular with those commuting to Derby.

Average Property Prices in East Suburbs

Eastern suburbs include the postcodes DE21, DE24 and DE72.

Average property prices in these areas are as follows:

• DE21: £234,924
• DE24: £184,824
• DE72: £333,225

All figures found on Zoopla.

Average Rental Yields in East Suburbs

DE21 has an average rental price of £1,126 pcm. This results in a yield of 5.8%.

DE24 rental prices are £741 pcm on average. Rental yields are 4.8%.

DE72 has average rental prices of £879 pcm. Rental yields are lower than in other parts of East Derby. They stand at 3.2%.

Derby’s southern suburbs include:

• Rose Hill
• New Normanton
• Normanton
• Pear Tree
• Sinfin
• Sinfin North
• Stenson Fields
• Osmaston
• Allenton
• Chellaston

The Rolls Royce and Bombardier industrial sites are in this area.

South Derby’s inner-city areas attract buy-to-let investors due to low property prices. As you approach Chellaston, prices get more expensive.

Average Property Prices in South Suburbs

Average property prices in this area are as follows:

• DE24: £184,824
• DE65: £281,454
• DE73: £285,081

All figures courtesy of Zoopla.

Average Rental Yields in South Suburbs

DE24 has an average rental cost of £741 pcm. This puts the yield at 4.8%.

DE65 commands an average rent of £829 pcm, putting the yield at 3.5%.

DE73 has an average rent of £1,047 pcm. The yield stands at 4.4%.

In recent years, newly built developments have risen in popularity within the rental market. With certain advantages over older residential properties, this investment type has garnered significant interest from investors and tenants alike.

These brand-new developments require almost no maintenance, leading to a faster turnaround for new tenants to move in and for investors to start seeing returns.

In Derby, there are plans to boost new housing developments within the region. In 2024, Derby City Council outlined plans to transform a former school playing field into accessible and affordable housing. Once approved and completed, this could further boost the local infrastructure and rental market in the long term.

Considering recent rental market trends, investing in newly constructed such as these could lead to substantial capital appreciation and robust rental returns.

Read More: Discover more about this investment trend with our recent buy-to-let guides, covering everything from new-builds in Crosby to the latest UK hotspots!

As we mentioned earlier, Derby property prices are 12% cheaper than the national average. However, rental yields are only 4.6%, which is almost 0.6% less than the national average.

But investors are more likely to choose major cities for an investment, meaning many in the area will opt to buy property in Birmingham instead.

London is a popular choice but the extravagant price of buy-to-let property for sale in London can be off-putting.

If property investors are considering city investment, they may want to turn their attention to the North West instead. Liverpool is a more attractive prospect to many people. This is thanks to top-quality universities and better job prospects.

In addition, property in Liverpool for sale averages at about £156,300 (according to Zoopla). As such, Derby property prices are 33% more expensive than their North West counterpart. Liverpool also offers better rental yields at 7.77%.