Nottingham is a prime location for property investment, presenting a fantastic opportunity for those interested in the buy to let market. The city offers a dynamic rental scene, a thriving economy and significant regeneration projects. With a growing population and a strong student presence, the demand for quality buy to let properties in Nottingham is consistently high, making it an attractive city for both new and experienced investors looking into Nottingham property investments.
Last updated: April 2026
Derby property investment sits at a compelling point in the UK buy-to-let market. Average property prices in the city range from approximately £204,600 to £210,000, which is around 30% below the England average, while rental yields in the city centre reach as high as 5.9% to 6.07%. Add a 53% increase in property values over the last decade, a £2.6 billion regeneration pipeline and one of the most diversified employment bases outside of London, and the case for investing in Derby becomes hard to ignore. This page covers what makes Derby worth your attention, which areas are performing strongest and the opportunities available through Prosperity Group.
Derby is the East Midlands’ most central city, sitting within reach of Nottingham, Birmingham, Sheffield and Leicester. That central position draws employers, commuters and professionals who need somewhere to live, and that steady inflow of working tenants is the foundation of a reliable rental market.
Property values have grown at a consistent pace without the sharp corrections seen in markets that run too hot. Savills forecasts 20.3% price growth in the East Midlands over the five years to 2029, one of the stronger regional performances in the UK. For investors focused on income and long-term capital appreciation, that trajectory points in one direction.
Derby has one of the most resilient employment bases outside of London. Rolls-Royce, Toyota and Alstom together support over 45,000 jobs in the city, attracting skilled professionals who are mobile but committed to longer tenancies. The University of Derby adds another layer of consistent rental demand, with over 20,000 enrolled students across its campuses.
Derby is ranked the 6th most productive city in the UK, and its employment rate consistently outperforms the East Midlands average. That economic strength filters directly into the rental market. Void periods are shorter, tenant quality is higher and rental income is more predictable than in cities that rely on a single employer or sector.
One of the clearest draws for buy-to-let property investments in Derby is the entry price. At approximately £204,600 to £210,000 on average, Derby property is around 30% cheaper than the England average. Lower purchase costs mean smaller deposits, lower borrowing requirements and stronger potential returns relative to your outlay.
Rental yields across the city range from an average of 4.1% to 6.07% in high-demand postcodes, with city centre apartments achieving between 5.9% and 6.07%. New-build and converted apartments perform particularly well, attracting longer-term professional tenants who value modern specification and low running costs.
Derby’s population currently stands at approximately 267,000 and is projected to grow by 5.3% over the next 20 years. Almost half the population is under 35, which means the city has a strong, self-renewing pool of renters who are not yet ready or able to buy.
Demand for private rented housing is already outpacing supply. A 20,000-person social housing waiting list and around 20 renters competing for each available private rented unit keeps vacancy rates low and gives landlords pricing power when it comes to rent reviews and renewals.
Prosperity Group has a proven track record of delivering UK property development investments across Derby and the wider Derbyshire area, having successfully completed multiple developments in the region. The Mill is Prosperity Group’s current Derby opportunity, with further developments to be added to this page as they become available.
The Mill is one of the most distinctive property investment opportunities in Derby. Osmaston Mill is a collection of 64 luxury apartments set within a carefully restored 1892 building, sitting in a prime position south of Derby city centre. All the character and heritage of a traditional mill, completely rebuilt inside to a modern standard.
The location works hard for investors. The Mill sits just six minutes from Rolls-Royce’s global headquarters and eight minutes from the Royal Derby Hospital, two of the city’s largest employers. That proximity is a direct draw for the professional tenants who fill this kind of stock and stay.
Prices start from £154,995, with rental income of £900 per month. Entry is available through Prosperity Group’s unique property payment plan: a 5% deposit of £7,749 upfront, followed by 24 monthly payments, with a mortgage arranged on the remainder at completion.
Prosperity Group’s history in Derby and Derbyshire demonstrates consistent delivery across a range of property types and locations. Prosperity House, a residential conversion of 147 one and two-bedroom apartments in Derby city centre, delivered yields of 6.8%. Cathedral House, an 8-unit conversion with a prominent frontage in Derby’s Cathedral Quarter, delivered yields of 6.7%. Southside, a 69-unit development in Ilkeston, Derbyshire, delivered yields of 6.7% for investors. All three are now fully sold, which speaks to both the quality of the product and the strength of investor demand in this part of the East Midlands.
Accessing property investment in Derby without a large cash deposit is one of the most common barriers investors face. Prosperity Group’s unique property payment plan removes that barrier.
Reserve your property with just 5% of the purchase price. The remaining deposit is then paid monthly across the build period, which is typically 24 months. At completion, Prosperity Group arranges a mortgage on the remaining 70%. The entire process is handled in-house, meaning you are not coordinating multiple parties or chasing updates from third-party brokers.
For investors who want to enter the Derby market without committing a large upfront sum, this structure makes property investment in Derby straightforward from the first conversation.
Not every postcode performs equally. Location choice is one of the most important decisions you will make as a property investor, and Derby rewards investors who understand where demand is strongest.
DE1 is where the strongest yields sit. Average asking prices in DE1 are around £180,000, which is low even by Derby standards, while rental demand from professionals and students is consistently high. City centre properties are achieving gross yields of 5.9% to 6.07%, driven by short walking distance to major employers and the range of amenities concentrated in and around the Cathedral Quarter. For investors focused on maximising rental income, DE1 is the starting point.
The University Area (DE22)
The DE22 postcode, which covers areas including Allestree north of the city centre, sees strong demand from students and graduates of the University of Derby. With over 20,000 enrolled students, the area supports a reliable tenant pipeline throughout the academic year and beyond. Graduate retention is high, which means demand does not drop sharply once term ends.
Osmaston sits just south of the city centre and is home to The Mill. The area is approximately six minutes from Rolls-Royce’s global headquarters and eight minutes from the Royal Derby Hospital, both significant employers with large professional workforces. The combination of proximity to work and competitive purchase prices makes this a practical choice for investors focused on professional tenants with stable incomes.
Derby has committed serious capital to its own future. The city has secured over £4 billion in private and public investment over the last decade, with a further £2.6 billion of known projects currently in the pipeline. The flagship project is the £46 million Vaillant Live Arena, formerly known as Becketwell, a major new entertainment and cultural venue reshaping a significant portion of the city centre.
Regeneration areas follow a consistent pattern for property investors: improved amenity drives up rental demand, rental demand pushes rents higher and rising rents lift property values. Investors who enter Derby now are positioning themselves ahead of the full impact of that investment landing.
Infrastructure commitment at this scale also signals to major employers that the city is a serious long-term base, which reinforces the employment case that underpins rental demand for years to come.
Prosperity Group has delivered over 4,000 homes across 48 developments, with a combined gross development value exceeding £535 million. The business covers every stage of the investment process, from the initial development through to long-term letting management, without passing you between third-party companies.
Where most property businesses rely on external contractors for management and lettings, Prosperity Group keeps those functions in-house. Lamont Estates handles tenant sourcing and day-to-day management, while Bloc Management oversees the wider building and communal spaces. The team looking after your tenants is working alongside the team that built the property. Standards stay consistent and nothing gets lost in the handover.
The unique property payment plan sets Prosperity Group apart from most developers in the Derby market.
A 5% reservation, monthly deposit payments across the build period and a mortgage arranged at completion means you can build your property portfolio in Derby without needing a large lump sum upfront.
Contact Prosperity Group today to find out how we can support your Derby property investment journey. You can call us on +44 (0) 121 237 4610, speak to us via our live chat or send us a message via the form on our contact page.
“A huge thank you to Eudel and his support team at Prosperity Wealth for helping us start something that my wife and I truly thought would be impossible right now. From the very beginning, everyone has been incredibly patient, supportive, and thorough in explaining every step of the process. No matter how many questions we had, they took the time to make sure we fully understood everything and felt comfortable moving forward.
We’re so grateful for their guidance and professionalism, and we’re really looking forward to the next steps of our journey at Lakeside Nottingham. Highly recommended!” – Ken Hinds via Google
“I’m in the middle of my payment plan for an off plan apartment purchase in Birmingham. The plan has been smooth so far and I’d like to thank Eudel and Joro for their flexibility when I made some recent requests. It is much appreciated and would encourage me to deal with this company more in the future.” – Rory McMahon via Google
“Prosperity – Investors Dream! I’m new to Property investment and it’s always daunting not knowing what the right investment is; Prosperity and David Yelloly in particular has been amazing; David has been very honest and clear in giving me benefits/drawbacks of proposed investments, putting me at ease and giving me comfort and reassurance about my decision. Service has been spot on and I would definitely recommend Prosperity to new and experienced investors! Finding an honest salesman is not easy to come by but here you have it! :)” – Seetal Patel via Google
Prosperity Group was founded by Joe Billingham, who acquired his first investment property at 18 and has spent over 30 years building one of the Midlands’ most recognised property businesses.
As Birmingham’s largest private developer, the group has delivered over 4,000 homes across 48 developments with a combined gross development value exceeding £535 million.
The group operates across development, investment, social housing and property management, with each division covering a different stage of the asset lifecycle. Prosperity Developments builds the properties.
Prosperity Group handles the investment process and payment plans. Lamont Estates manages the lettings. Bloc oversees building management. Every stage is handled in-house, so the experience stays consistent from purchase through to long-term ownership.
Yes, Derby is a good place to invest in property. Derby combines affordable entry prices, strong and diversified rental demand and a resilient employment base anchored by major global manufacturers. Property values have grown by 53% over the last ten years, and Savills forecasts 20.3% price growth for the East Midlands over the five years to 2029. With a chronic undersupply of rental housing and population growth projected for the next two decades, Derby continues to attract buy-to-let investors seeking consistent long-term returns.
Yes, house prices are going up in Derby. Derby property values have risen by 53% over the last decade, and Savills forecasts 20.3% price growth for the East Midlands over the five years to 2029. Investors who enter the market at current prices are well positioned to benefit from that trajectory.
Rolls-Royce is Derby’s largest employer, with its global headquarters located in the city. Toyota and Alstom also operate major facilities in Derby, and together these three companies support over 45,000 jobs. This employment concentration is one of the primary drivers of professional tenant demand and makes Derby one of the most stable rental markets in the East Midlands. If you are also exploring the wider region, take a look at our Nottingham property investment opportunities.
Gross rental yields in Derby average around 4.1% across all property types, with city centre postcodes such as DE1 achieving between 5.9% and 6.07%. Prosperity Group’s completed Derby developments have delivered yields of up to 6.8% for investors. New-build and converted apartments typically outperform older stock due to lower maintenance costs and stronger tenant appeal.
With Prosperity Group’s unique property payment plan, you can reserve a property with just 5% of the purchase price. The remaining deposit is paid in monthly instalments across the build period, typically 24 months. A mortgage is then arranged on the remaining 70% at completion. This means you do not need a large upfront sum to begin a buy-to-let property investment in Derby.
Written by Oliver Thacker, Property Investment Consultant, Prosperity Group. Oliver specialises in helping clients build income-generating off-plan buy-to-let portfolios across the UK. Contact us today to find out how we can support your Derby property investment journey or explore our other UK property investment developments. You can call us on +44 (0) 121 237 4610, speak to us via our live chat or send us a message via the form on our contact page.
External sources: Zoopla Rental Index 2025 | Norfolk and Suffolk Property Review, May 2025 | Property Investments UK: Norwich Yields
Property investment carries risk. This page does not constitute financial advice. Independent financial advice is recommended before investing.
