7 Things You Don’t Know About Derby

In the centre of the East Midlands, you’ll find a hidden gem – Derby. Renowned for its part in the Industrial Revolution, Derby has long been known for its colourful history, but in more recent years, it has become more prominent for its property investment opportunities. 

With a wealth of employment opportunities and a severe undersupply of rental property, this East Midlands powerhouse is ranking amongst some of the UK’s major cities for buy-to-let investment, but why? Here are seven things you might not know about Derby and why they’re helping the city become one of the most exciting investment locations in the country.

• Derby is a major manufacturing centre

In the 19th century, railways arrived in the UK, which quickly saw Derby become the home for the British rail industry. As well as offering transport links across the country, the city has since grown into one of the biggest transport manufacturing hubs in the UK. 

Housing the likes of Rolls-Royce, Bombardier Transportation and Toyota, it’s no surprise that the city is more commonly known for its collection of global transport companies. As the three biggest employers in Derby, these businesses are crucial to the local economy. 

The city’s Gross Value Added (GVA) per worker currently stands at around £55,000 – almost £5,000 more than the UK average. Derby’s manufacturing sector has long been the driving force behind this impressive figure, with research suggesting that without this industry, the city’s GVA (per worker) would drop by £8,600 – reinforcing the sheer size of the sector.

• Property prices have increased by 55% in the past 10 years

Derby has one of the most affordable property markets in the UK, but that doesn’t mean prices aren’t on an upward trajectory. According to the House Price Index, property prices across the city have increased by 55% in the last 10 years alone – pushing the average property price to £181,600.

A key reason for this is the amenities that Derby is building, which in turn is attracting a number of both buyers and renters. It’s these transactions and demand in the market that is helping to drive prices up. 

With further increases on the horizon, Derby’s property market shows no sign of slowing down. The latest statistics from JLL suggest that by 2026, property prices could increase by 17.5%, which would equate to £32,000 growth. Combined with the past performance of the city, this is making Derby one of the best property investment opportunities in the UK. 

• The Derby City Centre Masterplan 2030 will leverage £3.5b in investments

The Derby City Centre Masterplan 2030 is transforming the city at its core, and aims to leverage up to £3.5b in inward investment in the coming years. With a focus on savouring the city’s rich history and boosting its amenities, this ambitious project will only increase the appeal of Derby. 

From the regeneration of Becketwell Performance Centre to the addition of a £20 million Hi-Tech Business Park, the Derby City Centre Masterplan will offer new amenities and attractions, as well as thousands of employment opportunities. 

By further highlighting Derby as a key location for leisure and employment, this will entice more investment into the city, and in turn, attract more young professionals. With this additional demand across the residential market, the number of property investment opportunities in Derby will skyrocket.

• Derby has the highest graduate salary for regional cities

The UK’s capital cities, London and Edinburgh, come with higher living costs and naturally offer more competitive starting salaries, but for regional cities, Derby is leading the way with the highest graduate salary in the UK. 

As a property investor, you might be thinking, why is this important? Graduates are the young professionals of tomorrow and are invaluable to an economy, as well as local property markets. Making up a large section of ‘Generation Rent’, this demographic is also usually a prime audience in the rental market.

Graduates look for several different things in a location, but a competitive graduate salary is arguably the most important. At £29,427, Derby is far surpassing other regional cities across the UK, making it a hub of opportunity for young professionals.

• Derby saw the highest annual increase in rents between 2020-2021

When considering Derby’s expansive employment base and the city’s popularity amongst the younger demographic, it’s no surprise that the rental market saw the biggest increase in the UK from 2020-2021. 

With average rents increasing 8% in just 12 months, Derby’s average rental yield is now reaching 6.07% – far surpassing the UK average at 4.71%. However, the latest statistics from JLL suggests that this is a glimpse of what is yet to come in Derby’s rental market. 

Alongside the forecasted 17.5% growth in prices, average rents could increase by another 12% over the next five years. This will largely be driven by a combination of undersupply and growing demand, reinstating the property investment opportunities in Derby. 

• Derby is home to one of the biggest city centre regeneration projects in the UK

Regeneration projects spread far and wide across Derby, from the city’s ambitious masterplan to the redevelopment of Becketwell Performance Arena. Amongst these is Nightingale Quarter – one of the biggest city centre regeneration projects in the UK. 

Nightingale Quarter covers more than 18.5 acres in the heart of the city, and is restoring a piece of Derby’s rich history. Located on the former Nightingale Hospital site, this development is a thoughtful restoration of the area, especially with the rejuvenation of the iconic Pepper Pots.

Not only will Nightingale Quarter include six acres of idyllic greenery, but the site will also host hundreds of houses and apartments upon completion. In addition to this, the site’s two Pepper Pots will be restored to their former glory and used as a residents-only gym and an exclusive eatery.

• Derby has a rail catchment of over 800,000

Derby is at the centre of the UK, and offers transport links across the country. With links to Northern powerhouses and easy access to the capital, the city is one of the most-well connected locations in the UK, with a rail catchment of over 800,000. 

While Manchester is 195 minutes by train, the UK’s second city – Birmingham – is a short 35-minute commute. Derby also offers easy access to London by rail, with the capital city just 191 minutes away. 

Not only do these transport links make Derby a prime location for transient tenants, but they continue to support a growing population of inward commuters. According to research, more than 25,000 employees travel to the city for work from the wider region, highlighting the appeal of Derby’s employment opportunities.

We’ve looked at seven different things that you probably didn’t know about Derby, each of which makes the city an ‘underdog’ in the world of buy-to-let property. With a demonstrated history of property price growth, a growing population of young professionals and much more, Derby is full of property investment opportunities – find yours today.