A city with a rich culture and a lot of historical significance, Nottingham property investment has been gaining more and more attention over the last couple of years. Voted one of the best buy to let hotspots for UK property investment, next to other cities like Liverpool, Manchester, and Leeds, increasing numbers of investors are considering purchasing rental properties in Nottingham. Here, we’ll explore the reasons why the property investment Nottingham offers could be right for you, and the best areas in Nottingham to consider for your buy to let venture.
Why invest in Nottingham property?
Located in the Midlands, Nottingham is the perfect city for both residential and student property investment. Nottingham is home to a population of around 781,151 as of 2019, many of which are young professionals and students. Since so many of this population are seeking property to let in Nottingham, it’s clear that buy to let in this thriving UK city creates a perfect opportunity for lucrative returns.
If you’re contemplating whether or not you should buy Nottingham property, take a look at these reasons why you should consider property investment in Nottingham.
Invest in Nottingham for its famous history
Nottingham has a long and fascinating history. Mentioned in both the Anglo-Saxon Chronicle and the Domesday Book, this English city has been part of the nation’s story for thousands of years. Nottingham’s monumental castle is an ever-present reminder of 1,000 years of history that unfolded in this Midlands city, being founded by William the Conqueror after his victory in the battle of Hastings.
Many literary figures have hailed from this city, including DH Lawrence and Lord Byron. Perhaps most famous of all, Nottingham is home to the folklore legend of Robin Hood and attracts herds of tourists each year to its immersive ‘Robin Hood experience’. If you’re looking to invest in a UK city with a lot of historical significance, then the choice of buy to let Nottingham has to offer could make your ideal investment.
Nottingham property prices are affordable
Affordability is such an important thing to think about when purchasing an investment property. If the property you own is priced highly in terms of rental costs, but it was also expensive to buy, then the type of yields you’ll generate won’t be high enough for a solid investment. Nottingham property prices average at around £138,440, which is lower than average house prices in London, Cardiff, Oxford, Southhampton and many more UK cities.
Because Nottingham has low prices but increasing rental costs of 3.39 per cent, those who purchase property in Nottingham can expect yields of 4.46 per cent on average. Different Nottingham postcodes offer even higher yields, such as the NG7 postcode with yields of 8.89 per cent.
Nottingham is great for young professionals
With a growing business scene, Nottingham has become a fantastic city for the young professional crowd. More companies are choosing to launch in Nottingham, being attracted by the city’s rich culture and affordability. In 2015, around 2,138 businesses launched in the area, compared to the UK average of 834. This investment that Nottingham has seen from businesses has helped to grow the city as a whole, making it more appealing as a city for young professionals to live and work in and increasing the number of people seeking a property to let in Nottingham.
The percentage of young people aged between 18 and 29 in Nottingham stands at around 28 per cent. With a large population of young people comes more demand for buy to let properties, with more young people choosing to rent rather than buy. This is why, when it comes to Nottingham property investment, buying a residential property is a good option for those who want to cater to this young professional market.
Nottingham property investment is great for student buy to let
Cities with a thriving student scene usually perform well when it comes to property investment. The student investment opportunities Nottingham has to offer make a good option due to the levels of demand for student property that the city receives.
Nottingham is home to both the University of Nottingham and Nottingham Trent University. These world-class universities attract over 60,000 students to the city. Bringing new creative talent and a boost to the economy, these students have consequently increased the demand for Nottingham buy to let property. Nottingham is also a prime spot for overseas students. According to the University of Nottingham, a quarter of all students are overseas students, with a higher number of postgraduates from international countries than there are from the UK.
With such high demand from students, particularly those from overseas who may be more likely to pay higher rental costs for luxury accommodation, investors that purchase student properties should expect to see significant returns.
Nottingham regeneration is boosting growth
Like many other UK cities, Nottingham has a lot of big regeneration plans in place. One of the biggest regeneration schemes planned for the city includes the redevelopment and restoration of Nottingham Castle. A total of £29.4 million has gone into this project, which aims to bring an additional £90 million to Nottingham’s economy over the next ten years by improving the city’s historic landmark. Other plans involve a £250 million redevelopment of Nottingham’s ‘Southern Gateway’, introducing a new Intu shopping centre, central library, bus station and more.
Transport is a major focus when it comes to Nottingham regeneration and the appeal of buying property in Nottingham. One of the biggest redevelopments in place for the UK, HS2, is set to impact Nottingham by connecting it to other cities and massively reducing journey times. This is good news for those who live in the city and need to commute to nearby cities like Birmingham, cutting the travel time from Nottingham to Birmingham down to just twenty minutes.
Regeneration projects like these are predicted to help the economy of Nottingham grow, which will, in turn, boost the appeal of investments. Nottingham property prices have been increasing over recent years, with a growth of 4.2% in 2018. Rising property value has been seen throughout the Midlands, with a significant rise from the 12 months to April 2019, and predictions for further growth over the coming years. Property investors who are interested in the returns they can get from capital growth should consider Nottingham property investment for this reason.
Is Nottingham good for buy to let?
Nottingham is a good place to invest in property due to capital growth potential, attractive yields, and a growing population increasing demand for rental accommodation. By 2025, Nottingham’s population is predicted to grow by 0.79 per cent, while exciting regeneration projects are set to give the city’s economy a boost.
If you’re interested in the prospects on offer from Nottingham investments but you’d like to focus on buy to let investments further up North, consider Liverpool and Manchester. These two cities outrank Nottingham in terms of rental yields and house price growth, offering all the same potential and more, often with a lower price tag.
The best areas in Nottingham – The top areas to buy Nottingham property
In order to really get the most out of an investment, it’s important to understand the best areas to invest in. When looking for an investment property for sale, Nottingham property hotspots should be top of your list.
Population: 8,000 approx.
Average House Price: £169,716
Although Nottingham city centre has a smaller market than most other UK cities, Nottingham properties in this area are able to generate some high yields of between 5 and 6 per cent. Some of the most popular city centre Nottingham postcodes include Hockley, Derby Road, and the Park. Those who work within Birmingham’s bustling business scene, most notably the Creative Quarter, will be looking for properties in this area so that they can be close to their workplace.
A lot of the regeneration planned for Nottingham will be based in the city centre. This is likely to contribute to a growth in value for properties in the area and improve the investment opportunities Nottingham offers, specifically developments which are more in demand such as student and residential apartments.
Average House Price: £164,437
The Long Eaton area is located within Derbyshire, but the proximity to Nottingham makes it a good spot for those who want to travel into the city. Due to the suburban nature of the town, Long Eaton is popular with families or young professional couples working in Nottingham or Derby. Thanks to affordable prices, yields in this area come to an attractive figure of around 4 to 5 per cent.
Regeneration plans for Long Eaton include the introduction of a huge new water sports park in the area, which will facilitate sports such as canoeing, paddle-boarding, scuba diving and more. Features like this could bring more interest to the town as a whole, and increase the chances of capital growth for your Nottingham buy to let property.
Average House Price: £276,896
Look across the River Trent, and you’ll find West Bridgford. This thriving borough is considered one of the more high-end areas in Nottingham, which makes it ideal for those who want to target a more affluent tenant for their Nottingham property investment venture. Due to high prices, however, yields in this area average around 3 per cent. If you can look past this, you could benefit from a consistent demand from the areas high population, and the potential for capital appreciation due to regeneration.
West Bridgford has been targeted as a major regeneration hotspot in the city. Plans for the area were announced in 2017, and focus on redeveloping the existing Bridgford house and transforming it into new luxury apartments and a strip of restaurants and bars. West Bridgford is an area that’s more popular with families, so if this is the type of tenant you wish to target with property investment in Nottingham, this is the place for you.
Average House Price: £259,072
Considered one of the most fashionable areas for rental properties in Nottingham, Beeston is a great place to buy Nottingham property if you want to cater to a younger crowd. Home to Nottingham University, Beeston is particularly popular with students and benefits from yields of a 4 per cent average.
Young professionals living in Beeston can enjoy proximity to Boots headquarters as well as Nottingham Science Park. Excellent transport links also mean that connectivity is strong in this area, linking Beeston to Nottingham city centre in just 10 minutes. This area has seen a lot of regeneration as of late, with a scheme to bring a cinema, restaurants and bars, and new properties to Beeston. This project was introduced as a way to improve the look and feel of Beeston’s town centre, and will hopefully help encourage investment in the area and boost property price growth.
About the data used
We’ve used a range of sources to find the information for this property investment Nottingham guide. For population figures and statistics, we referred to the data offered by World Population Review, Nottingham Insight, and City Population. Information about property prices in Nottingham was taken from Go Compare, Zoopla, and the Direct Gov website, while the University of Nottingham and Nottingham Trent University provided information on student numbers in the city.
Invest in UK buy to let with RW Invest
Those of you that have enjoyed reading this buy to let Nottingham guide and are interested in exploring additional options for UK buy to let investment should take a look at our guide to the most lucrative property hotspots for 2019. Don’t hesitate to contact us if you’re interested in starting your UK investment journey with RW Invest.