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Property investment stats for Derby, East Midlands

A complete guide to property investment in Derby.

Last updated: 18 September 2025

Investment summary

Derby stands out for its combination of affordability and strong rental performance. The price-to-income ratio of 4.7 suggests that homes are accessible for local buyers, while the rent-to-income ratio of 21.8% points to manageable rents for tenants. Sales activity is healthy, with 2,941 homes changing hands annually and properties spending an average of 40 days on the market. This liquidity is paired with a steady capital growth track record, as shown by a 3.1% rise over the past year and a 4.5% annualised growth rate over three years.

Rental yields are particularly attractive, with an average of 6.0% and even higher returns in the top-performing postcode district, where yields reach 9.4%. The student population is high (in the 85th percentile), and there is a strong presence of young adults, both of which help underpin demand in the private rented sector.

Image of Derby, East Midlands

Key investment stats for Derby

Median price per sq ft

£259 / sq ft

Average rental yield

6.0%

Capital growth (1y)

3.1%

Sales in past year

2,941

* Property stats calculated for last full calendar year (2024).

Live property stats in Derby

Live prices in Derby, East Midlands

* Extreme prices clipped for legibility

Properties for sale

Median price

£255,000

25% of properties below...

£180,000

75% of properties below...

£340,000

Most expensive property

£3,100,000

Live listings

1,676

Median days on market

40

Should you invest in Derby?

Opportunities

  • The average rental yield of 6.0% is compelling, and investors can achieve even higher returns in the top-performing district, where yields hit 9.4%.
  • The combination of a £259 per sq ft median price per square foot and a 4.7 price-to-income ratio makes Derby accessible for both first-time buyers and investors.
  • Strong sales activity and properties spending just 40 days on the market suggest good liquidity for those looking to enter or exit investments.

Risks

  • The achieved price is typically £1,650 (the typical achieved discount) below asking, which may indicate some negotiation is required or that buyers hold more power than sellers.
  • The area has a relatively high unemployment rate (in the 77th percentile nationally), which could affect tenant stability and future growth.
  • Owner-occupation is in the lower third nationally, which may reflect a market more reliant on renters and potentially more sensitive to changes in rental demand.

Outlook

Looking ahead, Derby's fundamentals appear supportive for investors. The combination of strong rental yields, steady capital growth (with a 3.1% rise in the past year and 4.5% annualised over three years), and robust demand from a large student and young adult population all point to continued resilience.

Affordability is likely to remain a draw, given the 4.7 price-to-income ratio and the £259 per sq ft median price per square foot. Investors should, however, watch for signs of economic pressure given the higher unemployment rate and the gap between asking and achieved prices. Overall, Derby offers a rare blend of yield, growth, and accessibility that will appeal to a range of investors.

Live properties in Derby

Investment properties in Derby, East Midlands

2 bedroom terraced house for sale
37% below median price

£120,000 - Offers in Region of

2 bedroom terraced house for sale

Eden Street, Derby, Derbyshire, DE2...

Properties needing refurbishment in Derby, East Midlands
Needs Refurb
2 bedroom terraced house for sale
37% below median price

£140,000 - Offers in Excess of

2 bedroom terraced house for sale

Crown Street, Derby

Priced to sell properties in Derby, East Midlands
Priced to Sell
2 bedroom flat for sale
On market for 175 days

£110,000 - Offers Over

2 bedroom flat for sale

Uttoxeter New Road, Derby, Derbyshi...

Slow to sell properties in Derby, East Midlands
Slow to Sell
2 bedroom semi-detached house for sale
Reduced by 28%

£105,000 - Guide Price

2 bedroom semi-detached house for sale

654 Osmaston Road, Derby, DE24

Big price drop properties in Derby, East Midlands
Big Price Drop
4 bedroom terraced house for sale
High yield opportunity

£180,000

4 bedroom terraced house for sale

Young Street, Derby

HMO properties in Derby, East Midlands
HMO
12 bedroom detached house for sale
4,769 sq ft

£825,000

12 bedroom detached house for sale

Thornhill Road, Derby, DE22

Properties with planning granted in Derby, East Midlands
Planning Granted
2 bedroom semi-detached house for sale
9% local yield

£157,500 - Offers in Region of

2 bedroom semi-detached house for sale

Mansfield Road, Derby, Derbyshire, ...

High rental yield properties in Derby, East Midlands
High Rental Yield
2 bedroom flat for sale
52% below median price

£75,000

2 bedroom flat for sale

Reginald Street, Derby, Derbyshire,...

Low price-per-sq-ft properties in Derby, East Midlands
Low Price per Sq Ft
2 bedroom terraced house for sale
42% below median price

£120,000 - Guide Price

2 bedroom terraced house for sale

Manchester Street, Derby, Derbyshir...

Auction properties in Derby, East Midlands
Auction

Achieved vs asking prices

Key takeaway: Seller's market

Median discounts are small, suggesting a competitive market.

Headline stats

• Median discount: £1,650

• 1 in 4 properties sell at > £6,999 below asking

• 1 in 10 properties sell at > £14,000 below asking

In percentage terms:

• Median discount of 0.8%

• 25% of properties discounted by > 2.8%

• 10% of properties discounted by > 5.0%

Best places to invest in Derby

Top postcodes for rental yield and (annualised) capital growth

Rank
Postcode
Yield
Capital growth
Median £/sq ft
1DE19.4%4.1%£229 / sq ft
2DE246.0%6.9%£247 / sq ft
3DE235.6%3.3%£232 / sq ft
4DE225.5%3.4%£263 / sq ft
5DE215.3%3.9%£260 / sq ft
6DE34.7%4.1%£300 / sq ft

Data sources

GeoGlider calculates property investment stats by blending official and proprietary datasets. Here's a quick overview of key sources and how we use them:

  • HM Land Registry: Property transaction and sold-price records for England & Wales used to calculate historical capital growth, price levels and comparables.

  • Office for National Statistics (ONS): Demographic and economic indicators for the UK, including Census 2021, supporting area profiling and market context.

  • Ordnance Survey: Authoritative UK geospatial data powering accurate boundaries, roads and terrain for mapping and spatial analysis.

  • GeoProp: Our proprietary AI pipeline that processes millions of property listings to extract rich features and live market signals.

  • Department for Levelling Up, Housing & Communities: Energy Performance Certificate (EPC) scores and property floor areas.

  • HM Revenue & Customs (HMRC): Household income and employment data to understand local affordability and economic conditions.

Data is updated continuously, matched across sources and rigorously validated.