Rental Demand
Rental demand in Derby is driven by a combination of factors, including its thriving economy, the presence of major companies, and its strong student population. The city has a large student population, with over 34,000 students enrolled at the University of Derby. Additionally, Derby is home to global businesses such as Rolls-Royce, Toyota, and Bombardier, attracting business professionals and skilled workers.
The average rent in Derby as of 2024 is £956 per month, according to Home, an increase from £825 in 2022. Rental yields in Derby are impressive, reaching as high as 8.59% in 2023, according to various sources.
The demand for rental properties in Derby is expected to continue rising due to the city’s growing population and the limited supply of housing. The population of Derby is projected to increase by 5.3% over the next 20 years, and there is already a significant waitlist for social housing in the area.
The average rental yield in Derby is 4.6%. This is calculated based on the average property price in Derby of £245,000, as of 2024.
The Derby City Centre 2030 Masterplan, a large-scale regeneration project, is expected to further boost rental yields. The project aims to create 4,000 jobs and 1,900 new homes by 2030, contributing to population growth and increasing demand for rental properties.