A complete guide to property investment in Derby.
Last updated: 3 November 2025
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 46 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.
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 prices in Derby, East Midlands
* Extreme prices clipped for legibility
Median price
£259,000
25% of properties below...
£180,000
75% of properties below...
£345,000
Most expensive property
£3,000,000
Live listings
1,635
Median days on market
46
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.
Average yield (%)
* 2025 data for YTD
Median price per sq ft (£/sq ft)
* 2025 data for YTD
Investment properties in Derby, East Midlands

£100,000
2 bedroom maisonette for sale
Dean Close, Littleover, Derby, Derb...

£175,000 - Offers Over
3 bedroom end of terrace house for sale
Stepping Lane, Derby

£100,000 - Guide Price
2 bedroom apartment for sale
Alonso Close, Derby, DE73


£580,000 - Guide Price
6 bedroom detached house for sale
Connaught House, Connaught Road, De...

£110,000 - Guide Price
2 bedroom flat for sale
Stuart Street, Derby, DE1 2EB

£75,000
2 bedroom flat for sale
Reginald Street, Derby, Derbyshire,...

£120,000 - Guide Price
2 bedroom terraced house for sale
Manchester Street, Derby, Derbyshir...
Buyers should not expect big bargains — discounts are marginal.
• 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%
Top postcodes for rental yield and (annualised) capital growth
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.