Derby Ticks All The Boxes For Property Investment | Home

Thursday 21 April 2022

Derby is well established as a highly rewarding property investment location, and it is clear to see why. With strengths in advanced manufacturing and numerous other high-value sectors that are helping to support one of the highest rates of average earnings in Britain.

Additionally, Derby is also part of a region that has wide-ranging plans for employment growth and urban regeneration – forces that will inevitably boost local rental demand.

There are certain criteria which make cities great for investment, and Derby ticks all of them, with:

  • Located in the East Midlands - one of the UK’s fastest-growing regional economies
  • Fast growing population
  • Billions of pounds worth of inward investment secured in the last ten years
  • Major regeneration projects in the pipeline
  • A multimillion-pound beneficiary of the Transforming Cities Fund
  • 4,500 jobs created over the last three years and thousands forecast over the next decade
  • A high concentration of high-value industries
  • Second highest income per capita outside London
  • Massive rental demand
  • Affordable property prices
  • Strong rental yields
  • A university student population of circa 34,000
  • Set to benefit from HS2 rail links

Advanced manufacturing is a key sector for Derby with 22,000 jobs supported by the aerospace, automotive and railway engineering industries, but these are by no means the only high value sectors in the city.

There are many other important sectors for GVA and employment, according to Derby City Council, including:

  • Creative and digital industries (12,500 jobs)
  • Quarrying (a £2 billion industry in the county)
  • Textiles (85,000 jobs and 2,300 businesses)
  • Tourism (worth £2.15 billion to the local economy; 28,000 jobs)

The local economy has been built on higher skills and relatively “future-proof” roles. Roles which are regularly filled by high earning, young professionals who should support robust demand for higher quality rental accommodation for years to come.

A major project which Derby is set to benefit from is HS2. A new station is to be built at Toton, between Derby and Nottingham, so the city can take advantage of the faster connection times promised by HS2. According to HS2, the station will boast rapid connections to Derby, Nottingham, Leicester, and East Midlands Airport. These connections will include a new railway and tram lines, and a new link road to the M1 motorway.
The main journey times to take note of are:

  • Birmingham Interchange: 17 minutes
  • Birmingham Curzon Street: 20 minutes
  • Leeds: 27 minutes
  • York: 35 minutes
  • London: 52 minutes

The East Midlands HS2 Growth Strategy predicts that, regionally, HS2 could help to create 74,000 new jobs and add £4 billion per annum by 2043.

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