A complete guide to property investment in Derby.
Last updated: 25 August 2026
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 39 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
£250,000
25% of properties below...
£175,375
75% of properties below...
£340,000
Most expensive property
£3,500,000
Live listings
1,840
Median days on market
39
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 (%)
Median price per sq ft (£/sq ft)
Investment properties in Derby, East Midlands

£235,000 - Offers in Excess of
3 bedroom end of terrace house for sale
Parkway, Chellaston, Derby

£130,000
2 bedroom terraced house for sale
Stafford Street, Derby

£73,000 - Offers in Excess of
1 bedroom park home for sale
New City, Curzon Lane

£335,000 - Guide Price
3 bedroom detached house for sale
Heath Avenue, Littleover, Derby

£160,000
5 bedroom town house for sale
Trent Street, Alvaston, Derby

£1,350,000
5 bedroom detached house for sale
Old Hall Avenue, Littleover, Derby

£110,000
3 bedroom maisonette for sale
Duke Street, Derby

£80,000 - Offers Over
2 bedroom flat for sale
Manchester Street, Derby, Derbyshir...

£145,000 - Guide Price
3 bedroom semi-detached house for sale
Arnhem Terrace, Spondon, Derby
Vendors are holding firm; properties tend to sell at close to asking.
• 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.