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7 Reasons to Invest in Property in Nottingham and Where to Buy

Boasting high quality of life for its residents and with much of the UK within easy reach, and at the same time undergoing substantial regeneration and economic growth, Nottingham is a city in its ascendency. And here you’ll get to know the  7 reasons why an investment property in Nottingham should be on your radar.

With strong capital growth potential, attractive rental yields and a sustainable student and growing young professional demographic, not to mention relatively affordable housing prices, now is a great time for property investment in Nottingham.

1. Nottingham Economy: Strong Prospects = Strong Rental Market

Thanks to strong prospects and a rapidly growing economy, Nottingham is a particularly attractive UK city to invest in property. Ranking a top 10 city in the UK for growth, Nottingham’s metropolitan economy is the seventh-largest in the United Kingdom with a GDP of £24.9 billion and growing at a rate of 1.7%, outperforming Birmingham, Liverpool and Sheffield.

Nottingham economy is forecasted to increase each year from 2021 to 2023 by 2.1%, which only goes to ensure Nottingham’s claim as one of the fastest-growing cities in the UK.

Not only is a strong and consistently growing economy making the city an attractive place to live, but job growth is higher than surrounding cities like Leicester and Derby. In the first three months of 2020, Nottingham was one of the top performers across the UK in terms of job creation, leading to an influx of people looking for rental property.

In addition, Nottingham made it onto the Sunday Times’ top 10 best places to live list in 2020! Described as a “fun, funky and affordable” city, Nottingham definitely did away with its industrial past.

With a population of 919,484 and access to a wider workforce of 1.1 million within the recruitment catchment area, investors can expect lower vacancy rates and increasing rent prices, suggesting a good rate of return on a rental property.

Another good news for property investors is that Nottingham is home to a large young population. The 18 – 29 population stands at 28%, compared to 16% nationally meaning there are plenty of opportunities to cater to this demographic often seeking rental accommodation. 

In addition, about 80% of Nottingham’s population is under the age of 40, which is the target market of most buy-to-let property investors.

Looking to the future, Nottingham’s economy is projected to be 14.8% larger by 2027 and will retain its title as the fastest growing economy across the East Midlands. (To put that growth figure perspective, Leicester, another one of the UK’s ascending economies will lag behind at 12.9 per cent growth over the next decade). From a real estate investor’s point of view, this means any investment property is likely to bring good ROI over the next decade.

Nottingham apartments - 7 Reasons to Invest in Property in Nottingham and Where to Buy

2. Nottingham Business: Thriving & Inviting

Nottingham’s thriving business scene continues to attract a wide range of companies to the city.

Over 50 nationally recognised companies have selected Nottingham as their national headquarters, this includes the likes of: 

  • Boots, 
  • Experian, 
  • E.ON 
  • Capital One. 
  • Center Parcs,
  • Speedo,
  • Wilkos,
  • and Paul Smith

The city’s economic growth is also supported by high-net-worth industries, boosting its appeal among young professionals, who are likely to seek out a rental property, which is good news for property investment in Nottingham. 

Another great fact is that these businesses tend to collaborate with Nottingham’s Universities, which makes them even more inviting to the student population, which now exceeds 60,000 people.

The financial and business services sector employs over 126,000 people and is home to businesses such as HD decisions and TDX group. One of the UK’s administrative centres, companies like KPMG, Deloitte and Browne Jacobson have a significant presence, boosting the city’s appeal to companies of similar stature.

At the cutting edge of life sciences and health innovation, Nottingham is known for its expertise in medical devices (the MRI scanner was invented in Nottingham), biotechnology and healthcare. The life sciences sector employs 91,000 people and is further enhanced by the NHS Trust and cutting-edge research from two of the UK’s leading universities covering cancer research, child health and clinical neurosciences.

With close to 114,000 people working in areas such as aerospace, electronics, R&D, and logistics, companies such as Rolls Royce, Reckitt Benckiser, Greene Tweed, Midlands Aerospace, Bombardier and Romax Technology have bases in Nottingham thanks to the city’s world-class talent pool.

And for you as a potential property investor, these facts indicate a stable and growing rental market with a huge potential for great returns in the coming years.

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3. Nottingham is Home to a Thriving Startup Scene

A city with innovation and imagination at its heart, Nottingham is home to a strong creative industry. In addition to fashion design, film, gaming and TV production, a strong business support ecosystem, access to a talent pipeline and affordable commercial rents make it a hub for startups and scaleups.

The city’s Creative Quarter is the heart of its digital and creative industry, combining coworking spaces, business ecosystems, retail, restaurant and living spaces in an innovative and forward-focused hub.

Opportunities for collaboration, talent and the resources to set up businesses with ease as well as affordability are a few of the reasons for Nottingham’s increased popularity with young professionals.

Now that we’ve outlined the prospective market of Nottingham, it’s easy to conclude that student accommodation and buy-to-let properties are the best options to invest in.

If that’s your cup of tea, check out other great buy-to-let hotspots in the UK and the best student accommodation investment areas of 2022 as well.

Nottingham Creative Quarter

4. Nottingham Low House Prices and High Rental Yields

In 2019, property prices in Nottingham grew faster than any other UK city at 5.2% per year. Investors are likely to see the upward trend continue, and in 2020, Nottingham along with Edinburgh and Glasgow ranked as the three cities with the strongest prospects.

Nottingham has taken huge strides in recent years and now represents a key investment area. As with Liverpool, this city offers small pockets that achieve high yields of around 9%. At the end of 2020, Nottingham is among the best places to invest in UK property after analyzing trends and data from multiple key sources.

While house prices are increasing, it’s still an appealing time for investors as prices in the city are low compared to other major cities in the Midlands. The average property price in Nottingham is around £241,062 a rise of 7% over the last year and 20%  since 2019.

Nottingham house prices average is lower than average house prices in London, Cardiff, Oxford, Southampton and many more UK cities. It’s also £97,000 cheaper than the average house prices UK boasts.

 Because Nottingham has low property prices but increasing rental costs, those who purchase property in Nottingham can expect yields of 6.65 per cent on average.

Nottingham’s rental market is also appealing. The city is currently suffering from a lack of housing supply, pushing up rents. The majority of new developments in recent years have focused on the student market and this has resulted in a chronic lack of new developments in the city centre for other residents and young professionals. While not an ideal situation for renters, with rents on the rise, it’s encouraging for investors.

5. Nottingham Studen Accommodation: A Thriving Student Rental Market

Nottingham is home to two world-class universities – The University of Nottingham and Nottingham Trent. Known worldwide for their excellence in research, the institutions have helped to power the city’s expertise in healthcare, manufacturing and technology.

The popularity of these two universities has led to a thriving student scene. There are over 60,000 students in the city, many of whom are from overseas. A quarter of the University of Nottingham’s students are from abroad.

Student rental property is in high demand and purchasing a buy-to-let property focused on renting to students can be a lucrative investment. Private investors have been attracted by high yields and low vacancy rates, and the fact that many of these students stay on in the city after graduation, contributing a pipeline of talent to the city’s economy and providing additional rental opportunities.

For those looking to invest in student accommodation, Nottingham has a few prime hotspots on offer: 

  1. Lenton
  2. Dunkirk
  3. Nottingham City Centre

The first two options offer returns of 6% on average, while the City Centre can award you with rental yields as high as 8%!

The Nottingham University students

6. Strong Future Economic Growth Potential

When looking for a buy-to-let property in Nottingham it’s important to consider a city’s future growth potential. Under a period of intense economic regeneration, things are looking exciting for this city.

The most noteworthy Nottingham regeneration projects are: 

  • Gateway Development, 
  • HS2, and 
  • the Island Quarter

Currently under construction is a £2 billion redevelopment of the city centre’s Southside. The project comprises a City Hub college campus, Grade A office space, and a refurbished shopping complex, as well as the redevelopment of the central library and bus station. £1 billion has already been invested in the city’s infrastructure, including one of the greenest bus networks in the UK and light rail trams for congestion-free commuting and transportation.

Guildhall Place is a 2.4-acre mixed-use redevelopment site in a prime location in Nottingham’s City Centre. While still in the concept phase, the development site is likely to include Grade A office buildings, university facilities, student accommodation, a hotel and a conference centre.

The city is also set to benefit from the HS2 high-speed rail network. With the East Midlands Hub base planned for Toton on the outskirts of the city, journey times to London will be further reduced and the rest of the UK brought even closer.

These development projects are set to have a positive impact across the board – business growth, an influx of young professionals and increased confidence for property investment in Nottingham, thanks to rising prices, new rental opportunities and capital growth returns.

Also, according to Savills, the property prices in the East Midlands are expected to increase by 4% in 2022, 3.5% in 2023 with an additional 3% growth predicted for 2024. In conclusion, house prices should see a rise of 16.5% by 2026 in the East Midlands alone.

If you’re interested in seeing knowing what 2022 has in store for the UK property market, check out this article –Housing Market Predictions for 2022.

7. Nottingham Lifestyle: High Quality of Life for Residents

A thriving transportation hub thanks to its location in the heart of the East Midlands, Nottingham boasts excellent transportation links and accessibility.

Easy access to North-South connections via the M1 and A1, and 77% of the UK population within an hour’s drive make it easy for businesses to serve a wide range of customers. Rail connections put London St Pancras just 1 hour 40 minutes away and HS2 is set to bring the rest of the UK in closer reach.

The city has two major airports on its doorstep and is home to the UK’s largest and busiest freight airport. 89% of England and Wales is accessible within a four-hour truck drive time, which has transformed the city into the heart of the UK’s logistics networks. 41,000 people are employed by the logistics and transportation sector, and leading operators have made Nottingham their UK base.

Nottingham is also a dynamic city, abundant in history and personality, with a particularly affluent city centre, it’s not hard to see the appeal of living in Nottingham.

In addition, the city’s growing foodie scene with two Michelin star restaurants, sporting and cultural events and independent shops make Nottingham a truly great location for city living. 

As well as a UNESCO City of Literature, Nottingham holds the title of the Greenest UK City with plenty of nature nearby, including Robin Hood’s famous Sherwood Forest and the Peak District right on its doorstep.

In addition, the £29.4 million restoration of Nottingham Castle is set to restore this historic landmark to former glory. The economic advantages of this project are clear, too, expected to bring an additional £90 million to Nottingham’s economy over the next decade.

Nottingham Castle

Which Areas are Best for Property Investment in Nottingham?

Here we’ll look at a few of the most popular areas for Nottingham property investments, and at prices and what sort of rental yields you might expect.

1. Nottingham City Centre

7 Reasons to Invest in Property in Nottingham and Where to Buy - Nottingham City Centre

As the city centre continues to undergo economic redevelopment, property in the area is catching the eye of investors. With a wide selection of houses and flats on offer, now is a great time to invest.

Attractive areas such as the Creative Quarter and Park Estate will remain popular with young professionals. The city centre is also an ideal location for students attending Nottingham Trent University, providing investors with a sustainable rental market.

Investors can expect rental yields of around 12% and average property prices of around £222,529.

2. Mapperley, Nottingham

Located in Nottingham’s northeast, Mapperley is a popular residential area. It’s home to a range of shops, cafes and pubs, as well as a shopping centre which serves the local area. Mapperley Park is a designated nature area, meaning greenery is likely to remain.

Conveniently located, it’s six miles from the M1, a 20-mile drive to East Midlands Airport and the mainline station in the city centre provides a regular service to London St.Pancras.

This family suburb is home to houses in the higher pricing brackets, with the average property purchase price around £241,445.

3. Beeston7 Reasons to Invest in Property in Nottingham and Where to Buy - Beeston

A residential and commercial centre, Beeston has Nottingham Science Park close by that features Grade A offices set within a landscaped campus-style environment as well as good quality office space and accommodation.

The area is popular with families due to its proximity to the M1 and 10-minute link by train to the city centre as well as buses and trams.

Average property prices in Beeston are £248,025

4. West Bridgford

West Bridgford is located around the South of the Nottinghamshire area, it houses some of the biggest sporting attractions in the region and contains a number of gorgeous areas and houses.

This higher-end residential area is popular for its parks and water activities surrounding the River Trent. There’s convenient access to the city thanks to cycle and bus routes.

With its wonderful array of independent shops and facilities, West Bridgford offers you shopping close to home as well as restaurants to enjoy.

Average property prices in the area are some of the highest in Nottingham and amount to £372,665

5. Long Eaton7 Reasons to Invest in Property in Nottingham and Where to Buy - Long Eaton

7 miles southwest of Nottingham, Long Eaton is a town on the Nottingham border. A popular commuter location, it sits on the M1 and features a reliable bus and train route connecting the East Midlands area and is easily connected to Nottingham centre by tram.

Long Eaton is a good value area for Nottingham property prices. A market, supermarkets and retail park alongside pubs, restaurants, cafes and a cinema mean there is plenty of amenities for renters or property buyers. In the last year, average property prices sold for £209,836.

Buy to let investors can find good value in Nottingham but you’ll need to check out what rental demand and likely rents are possible in the particular areas you’re looking at. With low property prices and rental growth, four times that of the national average, it’s not hard to see why adding a property in Nottingham to your portfolio would be a good investment.

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From economic growth to strong industries to a thriving rental market, there are plenty of reasons to consider property investment in Nottingham. If you’re thinking about purchasing a buy-to-let property in Nottingham, contact us today.

Nottingham