Nottingham Property Investments

“Fun, Funky, and Affordable”

Nottingham Property Investment

Located in the East Midlands, Nottingham may not be the first city that jumps to mind when considering property investment. 

With the likes of Liverpool, Manchester, Birmingham, and London dominating investors’ minds, many people don’t realise the potential offered by Nottingham. 

Property in Nottingham has actually seen some of the most significant growth in prices over the last five years and now sits on top of many growth charts. 

If you want to learn more about Nottingham property investment and see if the city is your ideal investment destination, then this guide is for you. 

Here we will explore the latest property market data to explain why you should consider Nottingham property investment in the future. 

We will also take a deep dive into the best Nottingham buy to let areas so you can make the best investment possible. 

Keep reading to learn more. 

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Why Invest in Nottingham?  Why Invest in Nottingham? 

Why Invest in Nottingham? 

The bustling small city of Nottingham has had quite an astounding growth in recent years. 

Voted in the top 10 best places to live by the Sunday Times in 2020 and featuring a thriving leisure and business scene, there’s a lot to love about this East Midlands city. 

The city has been described as “fun, funky, and affordable” by the Sunday Times, with a charm to rival Manchester’s Northern Quarter. 

This is a far cry from a city that was built on a rigid industrial backbone. 

Previously, the East Midlands city was regarded across the world as a pioneer in the lace-making, bicycle building, and drugs industries. 

Now, though, Nottingham has burst into the modern era, with its major industries now including a bustling business and financial sector, clean technology, digital and life sciences, and more. 

Nottingham Town Hall Nottingham Town Hall

Nottingham is a central cog in the UK logistics network, thanks to its ideal location. It has nearby access to the M1 and A1, placing around 77% of the UK’s population within an hour’s drive. 

If that wasn’t enough, the city also has the reputation of a UNESCO City of Literature. In addition, it is steeped in history thanks to the stunning Nottingham Castle and the legend of Robin Hood to explore. 

Not only does the city boast a thriving shopping hub, stunning art scene, and one of the best public transport networks in the UK, but Nottingham’s buy to let market is quickly becoming one of the best around. 

With incredibly affordable prices, impressive rental yields, and a strong demand from young tenants, Nottingham property investment needs to be at the forefront of investors’ minds in 2021. 

While we will discuss what it’s like living in the city later in this guide, the next few sections will focus specifically on the impressive rise of the Nottingham buy to let market.  

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Nottingham Property Investment: Property Prices in 2021 

When it comes to affordability, there are few cities that come close to Nottingham. 

According to official Land Registry data, the average Nottingham property costs £172,540 as of April 2021. 

To put that into context, that is cheaper than the likes of Newcastle, Sheffield, Birmingham, Bristol, Leeds, and more. 

It’s also around £80,000 cheaper than the UK average, making it more affordable than locations nationwide. 

In fact, the only major UK city with more affordable property prices is Liverpool, which boasts average prices of just £159,660. 

Average Property Price and Yield in Major UK Cities Average Property Price and Yield in Major UK Cities

Due to these astounding property prices, and sizeable rent figures of £855 PCM, according to Zoopla, the average rental yield in the city is 5.95%. 

For those not familiar with rental yield, it is the return on investment you earn through rent on a property and is calculated by dividing the yearly rental income by the purchase price of a property and multiplying by 100 for a percentage. 

Generally, anything between 5 and 6% is considered a good rental yield, which Nottingham investment property boasting returns at the higher end of this threshold. 

This is an incredibly high rental yield average, and is higher than most major UK cities, as seen in Table 1. 

While these property prices are incredibly appealing for prospective Nottingham buy to let investors, what makes the city truly exciting is the level of capital growth seen throughout the last few years. 

Nottingham Property Investment: Huge Capital Growth

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Why Are Nottingham Prices Rising?

So, why has Nottingham investment property continued to rise in price? 

Well, a huge contributor to the cost of a property is the demand in an area. 

Without demand, property would see minimal growth in both rent and property prices, making it a poor destination for investment. 

Likewise, with little demand, landlords could face a lot of void periods, which means their homes could remain vacant for a length of time without generating income. 

However, in Nottingham, there has been huge demand in the city, despite a fairly small population.  

According to the latest population figures from 2019, the total population of Nottingham is 332,900. 

Of this population, almost 30% are aged 18 to 29, while 70% of the population are of working age, which is far above the UK average. 

Moreover, there are an estimated 43,300 university students in the city, which means 13% of the city population are students. 

This is fantastic for investors, as young people are often the lifeblood of a rental market as they are more likely to rent. 

The younger population also makes student property investment in Nottingham an excellent choice, which traditionally is more affordable and generates higher rental yields than traditional residential property.  

These students are attracted to two world-class universities in the University of Nottingham and Nottingham Trent University. The former is in the top 110 universities in the world and was named Sports University of the Year in 2021, according to The Times.  

There is also the Queen’s Medical Centre to consider, an institution known as the largest teaching hospital in the UK, which helps employ over 6,000 people. 

Traditionally, the future potential of a city is what attracts many residents. 

Not only does the city need to boast plenty of quality employment options, but the overall quality of life in the city needs to be high. 

While we will talk about what it is like to live in Nottingham in a later section, this section will cover employment in the city. 

Thankfully for any prospective Nottingham residents and investors, the city boasts one of the most exciting business scenes in Europe. 

Nottingham has multiple Enterprise Zones throughout the city, which are designated areas in England that provide tax breaks for businesses. 

Due to this, the city is now home to over 50 headquarters of some of the biggest names in Business such as Boots, E.ON and Capital One. 

Nottingham also features several thriving and varied sectors. Its financial and business sector, for instance, employs around 126,000 people.  

On the other hand, its life sciences sector employs a further 91,000. Its science sectors are some of the best in the UK, with the city renowned for expertise in biotechnology and healthcare, along with cancer research and neuroscience. 

And if that wasn’t enough, the city also boasts an electronics and logistics sector, which features businesses like Rolls Royce, Midlands Aerospace, Romax Technology, and employs over 114,000 people. 

The future prospects of the city also look incredibly bright. 

Nottingham was the top performer in the East Midlands for job creation in early 2020, and the economy is set to rise even higher, with a predicted 14.8% increase by 2027.  

For context, that is higher than the likes of Leicester, which is nationally known for its expansive economy. 

Another contributor to the rise in Nottingham property investment has been the regeneration efforts on offer in the city. 

The three noteworthy projects in recent years have been the Gateway Development, HS2, and the Island Quarter. 

Set to transform the Broadmarsh area of Nottingham, the Gateway Development is set to introduce a new £58 million City Hub campus for Nottingham College. 

This will include a 200-seat theatre, a gourmet training restaurant, and more social spaces and classrooms for students. 

The £650 million Island Quarter is also set to take the city by storm. 

Described as a whole new community for Nottingham, the project is set to revolutionise a mixed-use regeneration space that lies just 500 metres away from Nottingham Train Station. 

The project will include new living spaces, food and drink, and business opportunities to propel Nottingham even further. 

Finally, one of the most important upcoming regeneration efforts is the introduction of an HS2 station. 

Near Nottingham and based in the village of Toton, a new high-speed train service station is set to be introduced for the East Midlands. 

Over 14 high-speed trains will leave the station every house and will connect Nottingham to locations across the East Midlands, and will make travelling across the UK even faster. 

This new East Midlands Hub will allow travel to Birmingham in just 20 minutes, while London will be less than an hour away. 

The benefits don’t just stop at allowing faster train journeys, but will also help reduce overcrowding and carbon emissions for the local area. 

It’s estimated that HS2 will free up enough space to improve the rail service in 73 stations across the UK. 

A Young Population

According to the latest population figures from 2019, the total population of Nottingham is 332,900. 

Of this population, almost 30% are aged 18 to 29, while 70% of the population are of working age, which is far above the UK average. 

Moreover, there are an estimated 43,300 university students in the city, which means 13% of the city population are students. 

This is fantastic for investors, as young people are often the lifeblood of a rental market as they are more likely to rent. 

The younger population also makes student property investment in Nottingham an excellent choice, which traditionally is more affordable and generates higher rental yields than traditional residential property.  

These students are attracted to two world-class universities in the University of Nottingham and Nottingham Trent University. The former is in the top 110 universities in the world and was named Sports University of the Year in 2021, according to The Times.  

There is also the Queen’s Medical Centre to consider, an institution known as the largest teaching hospital in the UK, which helps employ over 6,000 people. 

A Thriving Business Scene With a Bright Future

Traditionally, the future potential of a city is what attracts many residents. 

Not only does the city need to boast plenty of quality employment options, but the overall quality of life in the city needs to be high. 

While we will talk about what it is like to live in Nottingham in a later section, this section will cover employment in the city. 

Thankfully for any prospective Nottingham residents and investors, the city boasts one of the most exciting business scenes in Europe. 

Nottingham has multiple Enterprise Zones throughout the city, which are designated areas in England that provide tax breaks for businesses. 

Due to this, the city is now home to over 50 headquarters of some of the biggest names in Business such as Boots, E.ON and Capital One. 

Nottingham also features several thriving and varied sectors. Its financial and business sector, for instance, employs around 126,000 people.  

On the other hand, its life sciences sector employs a further 91,000. Its science sectors are some of the best in the UK, with the city renowned for expertise in biotechnology and healthcare, along with cancer research and neuroscience. 

And if that wasn’t enough, the city also boasts an electronics and logistics sector, which features businesses like Rolls Royce, Midlands Aerospace, Romax Technology, and employs over 114,000 people. 

The future prospects of the city also look incredibly bright. 

Nottingham was the top performer in the East Midlands for job creation in early 2020, and the economy is set to rise even higher, with a predicted 14.8% increase by 2027.  

For context, that is higher than the likes of Leicester, which is nationally known for its expansive economy. 

Nottingham Regeneration

Another contributor to the rise in Nottingham property investment has been the regeneration efforts on offer in the city. 

The three noteworthy projects in recent years have been the Gateway Development, HS2, and the Island Quarter. 

Set to transform the Broadmarsh area of Nottingham, the Gateway Development is set to introduce a new £58 million City Hub campus for Nottingham College. 

This will include a 200-seat theatre, a gourmet training restaurant, and more social spaces and classrooms for students. 

The £650 million Island Quarter is also set to take the city by storm. 

Described as a whole new community for Nottingham, the project is set to revolutionise a mixed-use regeneration space that lies just 500 metres away from Nottingham Train Station. 

The project will include new living spaces, food and drink, and business opportunities to propel Nottingham even further. 

Finally, one of the most important upcoming regeneration efforts is the introduction of an HS2 station. 

Near Nottingham and based in the village of Toton, a new high-speed train service station is set to be introduced for the East Midlands. 

Over 14 high-speed trains will leave the station every house and will connect Nottingham to locations across the East Midlands, and will make travelling across the UK even faster. 

This new East Midlands Hub will allow travel to Birmingham in just 20 minutes, while London will be less than an hour away. 

The benefits don’t just stop at allowing faster train journeys, but will also help reduce overcrowding and carbon emissions for the local area. 

It’s estimated that HS2 will free up enough space to improve the rail service in 73 stations across the UK. 

Robin Hood Statue in Nottingham Robin Hood Statue in Nottingham

Amenities and Transport 

So, what is it like living in Nottingham? 

As already mentioned, Nottingham was named in the top 10 best places to live in the UK according to the Sunday Times, and for good reason. 

The city is overflowing with culture and history. 

Aside from Robin Hood, Nottingham features a thriving shopping hub with an excellent art scene. 

The East Midlands city features plenty of galleries to choose from, that are led by Nottingham Contemporary, as well as two arthouse cinemas, and various theatres and venues designed for comedy and music shows. 

For foodies, Nottingham also boasts two Michelin-starred restaurants, Restaurant Sat Bains and Alchemilla. 

Through regeneration, multiple areas of the city have been transformed to become thriving cultural hotspots. 

One such area is the famed Hockley. Previously a hotspot for old lace mills, the area has been transformed and now features bars, restaurants, design studios, offices, and more, to rival the likes of Manchester’s Northern Quarter. 

Tram transport in Nottingham Tram transport in Nottingham

And, when it comes to transport, few cities offer the level of convenience as Nottingham. 

Through the Nottingham Express Transit, or more commonly known as the NET tram network, the city features tonnes of transport links spread across the area. 

From Hucknall and Phoenix Park, all the way to Clifton and Toton Lane, it is incredibly easy to travel to and from work in Nottingham. 

Because of these tram links, Nottingham has built a reputation as one of the UK’s most eco-friendly cities. 

The local council has aimed to reach zero emissions by 2028. This is significant as it is 22 years before the government’s nationwide target. 

They also have some of the best kebabs in the UK, so there’s that, too. 

For sports fans, the city features one of the most famous grounds in the cricket world, the Nottinghamshire Country Cricket Club’s Trent Bridge Ground, and there is also the legend of Robinhood and Sherwood Forest to explore. 

All in all, if you’re looking for an ideal lifestyle with plenty of transport links to boost the buy to let market, then Nottingham is a smart choice. 

Nottingham Property Investment: Price Predictions for 2021 and Beyond

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Nottingham Buy to Let: Best Areas to Invest in Nottingham

Figuring out the best places to invest in an area can be a tricky situation. 

Not only do you need to consider average house prices and rental yields, but you also need to factor in property demand and future growth potential. 

Thankfully, we’ve done the hard work so you don’t have to. Take a look at the following list of the best Nottingham buy to let areas so you can find the best place to start your Nottingham property investment journey. 

Nottingham City Centre 

Average House Price: £201,773 

Average Rental Yield: 5.53% 

Unlike other major UK cities, the Nottingham city centre market isn’t quite as bustling as you may expect. 

With students and younger people more likely to live in the city centre, though, this part of Nottingham is slowly on the rise, with more and more new build properties being built in the city. 

There’s plenty of areas to choose from in the city centre according to the likes of the Creative Quarter, Lace Market, and Derby Road to choose from. 

You can expect average property prices of around £201,773 according to Zoopla, with average rent valued at around £930. 

This means the average rental yield in the city centre is a strong 5.53%. 

NG1 Postcode 

Average House Price: £195,957 

Average Rental Yield: 5.77% 

The inner-city postcode of NG1 includes some of the more affordable property prices in the city of Nottingham. 

Alongside the popular areas of Radford and Lenton, located just outside the city centre, there are areas like Sneinton and St. Ann’s to choose from. 

On Zoopla, prices in this region of the city are slightly below those seen in the city centre, with a reported average property price of just £195,957. 

Thanks to strong rental returns of £942, you can expect average rental yields of 5.77%.

Beeston  

Average House Price: £329,046 

Average Rental Yield: 3.07% 

One of the most popular residential regions In Nottingham, Beeston is a hit amongst residents thanks to the number of opportunities on offer nearby. 

Not only is the area close to the M1 and has an excellent supply of tram links and trains, but the likes of Nottingham University and Nottingham Science Park are right on the doorstep. 

However, due to the number of links and business opportunities nearby, house prices can get incredibly pricey here. 

Looking at the latest Zoopla statistics, Beeston has average house prices of almost £330,000, with an average rent of just £843.  

This means rental yields aren’t the best at only 3.07%. 

Arnold, Carlton, Mapperley, and Sherwood 

Average House Price: £192,578 – £333,486  

Average Rental Yield: 2.98% – 5.19% 

All found in North East Nottingham, these family suburbs have become incredibly popular in recent years, and offer property prices ranging from just £192,578 to £333,486. 

Due to these wildly changing property prices, you can expect yields anywhere between 3 and 5%, with Carlton likely the best place to invest for those looking to generate higher returns. 

NG6 and NG8 

Average House Price: £199,183 – £289,784 

Average Rental Yield: 4.03% – 5.64% 

Located in North West Nottingham, and featuring locations like Bulwell and Bilborough, these postcodes are hugely popular amongst residents. 

With a diverse mix of property types, from privately owned properties to social housing, there are plenty of opportunities for a solid buy to let investment. 

The NG8 postcode, for instance, sees how prices of almost £290,000. Despite this, though, rent in the area is huge, with a monthly income of £1,361, resulting in yields of 5.64%. 

On the other hand, NG6 is generally cheaper, with prices closer to £200,000, and returns of 4.03%. 

West Bridgford 

Average House Price: £340,079 

Average Rental Yield: 3.93% 

One of the more affluent areas of Nottingham, West Bridgford is located just across the River Trent and sits near to Nottingham city centre. 

Due to average house prices of £340,079, the area has been referred to as the Chelsea of Nottingham. 

Despite these prices, average yields don’t suffer too badly, with returns of 3.93% thanks to a monthly rent of £1,113. 

Long Eaton 

Average House Price: £229,325 

Average Rental Yield: 3.38% 

Located just outside Nottingham, and classed as Derbyshire, Long Eaton is a top choice with families due to its ideal location to both Derby and Nottingham. 

Not only is the M1 found nearby for workers, but there’s also the East Midlands Airport and multiple logistics parks nearby. 

Property prices are fairly reasonable despite these amenities, with prices at around £229,325. 

However, due to low average rent, yields suffer and generate a percentage of 3.38%. 

Nottingham City Centre 

Nottingham City Centre 

Average House Price: £201,773 

Average Rental Yield: 5.53% 

Unlike other major UK cities, the Nottingham city centre market isn’t quite as bustling as you may expect. 

With students and younger people more likely to live in the city centre, though, this part of Nottingham is slowly on the rise, with more and more new build properties being built in the city. 

There’s plenty of areas to choose from in the city centre according to the likes of the Creative Quarter, Lace Market, and Derby Road to choose from. 

You can expect average property prices of around £201,773 according to Zoopla, with average rent valued at around £930. 

This means the average rental yield in the city centre is a strong 5.53%. 

NG1 Postcode 

NG1 Postcode 

Average House Price: £195,957 

Average Rental Yield: 5.77% 

The inner-city postcode of NG1 includes some of the more affordable property prices in the city of Nottingham. 

Alongside the popular areas of Radford and Lenton, located just outside the city centre, there are areas like Sneinton and St. Ann’s to choose from. 

On Zoopla, prices in this region of the city are slightly below those seen in the city centre, with a reported average property price of just £195,957. 

Thanks to strong rental returns of £942, you can expect average rental yields of 5.77%.

Beeston  

Beeston  

Average House Price: £329,046 

Average Rental Yield: 3.07% 

One of the most popular residential regions In Nottingham, Beeston is a hit amongst residents thanks to the number of opportunities on offer nearby. 

Not only is the area close to the M1 and has an excellent supply of tram links and trains, but the likes of Nottingham University and Nottingham Science Park are right on the doorstep. 

However, due to the number of links and business opportunities nearby, house prices can get incredibly pricey here. 

Looking at the latest Zoopla statistics, Beeston has average house prices of almost £330,000, with an average rent of just £843.  

This means rental yields aren’t the best at only 3.07%. 

Arnold, Carlton, Mapperley, and Sherwood 

Arnold, Carlton, Mapperley, and Sherwood 

Average House Price: £192,578 – £333,486  

Average Rental Yield: 2.98% – 5.19% 

All found in North East Nottingham, these family suburbs have become incredibly popular in recent years, and offer property prices ranging from just £192,578 to £333,486. 

Due to these wildly changing property prices, you can expect yields anywhere between 3 and 5%, with Carlton likely the best place to invest for those looking to generate higher returns. 

NG6 and NG8 

NG6 and NG8 

Average House Price: £199,183 – £289,784 

Average Rental Yield: 4.03% – 5.64% 

Located in North West Nottingham, and featuring locations like Bulwell and Bilborough, these postcodes are hugely popular amongst residents. 

With a diverse mix of property types, from privately owned properties to social housing, there are plenty of opportunities for a solid buy to let investment. 

The NG8 postcode, for instance, sees how prices of almost £290,000. Despite this, though, rent in the area is huge, with a monthly income of £1,361, resulting in yields of 5.64%. 

On the other hand, NG6 is generally cheaper, with prices closer to £200,000, and returns of 4.03%. 

West Bridgford 

West Bridgford 

Average House Price: £340,079 

Average Rental Yield: 3.93% 

One of the more affluent areas of Nottingham, West Bridgford is located just across the River Trent and sits near to Nottingham city centre. 

Due to average house prices of £340,079, the area has been referred to as the Chelsea of Nottingham. 

Despite these prices, average yields don’t suffer too badly, with returns of 3.93% thanks to a monthly rent of £1,113. 

Long Eaton 

Long Eaton 

Average House Price: £229,325 

Average Rental Yield: 3.38% 

Located just outside Nottingham, and classed as Derbyshire, Long Eaton is a top choice with families due to its ideal location to both Derby and Nottingham. 

Not only is the M1 found nearby for workers, but there’s also the East Midlands Airport and multiple logistics parks nearby. 

Property prices are fairly reasonable despite these amenities, with prices at around £229,325. 

However, due to low average rent, yields suffer and generate a percentage of 3.38%. 

Nottingham University Building Nottingham University Building

Nottingham Buy to Let: Best Student Investment Hotspots

Now that we’ve looked at the top residential markets, what about student property in Nottingham? 

Well, if you’re looking for a Nottingham investment property for sale for students, there are a few good areas to consider. 

Lenton and Dunkirk are incredibly popular for University of Nottingham students, and offer prices around the £250,000 mark with returns of around 4%. 

On the other hand, the city centre is an ideal choice for students studying at Nottingham Trent University, with house prices of £201,773, and 5.53% yields. 

Nottingham vs Rest of the UK

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Interested in Nottingham Investment Property for Sale? Consider RWinvest 

We hope you enjoyed our detailed guide to Nottingham property investment. 

If you want to learn more about Nottingham buy to let, or want to find top Nottingham investment property for sale, then why not consider RWinvest? 

With over 17 years of experience in residential and student buy to let, along with being named the North West’s best property business in 2020, RWinvest is one of the most reliable names in the investment world. 

We have helped over 50,000 investors since 2004, and built a reputation as the top investment company in the country. 

If you want to start your investment journey from just £34k, then contact one of our property specialists today. 

Alternatively, if you want to expand your buy to let knowledge before investing, then be sure to check out our huge guide to the latest tips for property investment today. 

Disclaimer: This guide was updated in June 2021. Depending on when you read, statistics and information displayed may no longer be accurate. Always be sure to speak to a financial adviser before investing. 

Invest From £50,000
Luton Prices from £179,950

5% Rental Returns 

75% Sold Out - Units Selling Fast

3 Units Remaining

The Summit

UK Leading Developer

Liverpool Prices from £139,950

Assured 7% NET Rental Yields

15-20% Below Market Value

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital