Derby is situated in Derbyshire on the banks of the River Derwent and has a long industrial heritage that has included silk making, engineering ad more recently, a Rolls Royce plant and Toyota. Derby is home to more than 248,000 people and is a cultural centre for deaf people as it has a strong community of people using sign language.
Derby property market
For about eight years, the property market in Derby was stagnant and even today, the average property price is just over £200,000 – compared with the national average of £293,000. Rental prices are about a third lower too.
Having said that, since 2017, the property market in the city has picked up as buyers have realised that it has so much to offer and as well as being a good base for exploring the Peak District, more importantly, it is just a 90 minute commute to the London and the nearest airport (East Midlands) is located just 15 minutes away. Last year, property prices increased by 7.9% – twice the national average and this is continuing in 2018 as ‘buy to let’ purchasers from other parts of the UK and abroad invest in the city.
Derby buy to let properties
The buyers most interested in property in Derby have been those investing in ‘buy to let‘ properties – particularly buyers dappling in the rental market for the first time. Private rental is growing across the UK and at present, the city has 17,800 rental properties with a great demand for more.
The average monthly rental for a one bedroomed flat is £460. The need for affordable housing in Derby is ever-increasing especially as the number of new ‘first time buyer’ properties being built is just 65% of the number built in the early 1970s. Property experts in the city reckon that 5,000 new ‘starter homes’ must be built ever year for the next decade to match the demand.
The greatest demand is at the lower end of the rental market where unfortunately, unscrupulous landlords are setting the rents unrealistically high. Not only does this mean that a number of families are forced to live in unsuitable housing because of their financial situation, but it also means that the rental prices are out of the reach of young people trying to move into their own housing.
Derby shops and job opportunities
The opening of Infinity Park – the £300 million, prime 100 acre commercial and high tech park in the south of the city – has brought 8,000 new jobs to Derby and an increased demand for property to both rent and buy.
Currently, there are job vacancies in manufacturing, engineering and HR in the city and Derby City Council has increased its work force by more than 600 in recent years. Rolls Royce is the largest private employer with 12,000 members of staff and Toyota has nearly 4,000 employees. Formal apprenticeships are now being offered by 40% of the city’s employees which is 5% above the national average.
Derby transport links
Derby has always had a strong link with the railways and is home to the largest cluster of railways. The recent announcement that the building of the HS2 railway has certainly given the city a boost as the high speed train will cut commuter times to London even further and will bring extra jobs to the area.
Not surprisingly, a recent study by property experts listed Derby as one of the three top places in the UK to buy property with Sheffield and Swansea being the other cities. With an increase in property prices of 23.3% predicted for 2019, it may make sense to consider buying a property to let in the city soon as this could yield 9% plus on your investment.
Now there’s food for thought!