A working example – Derby
One example of a market that challenges investor assumptions is Derby. Frequently overlooked in favour of larger, better-known cities, Derby’s fundamentals paint a fairly compelling picture for potential BTL success.
Home to major employers such as Rolls-Royce, Toyota and Bombardier, its long-term employment opportunities and skilled workforces underpin a strong economic performance with Derby frequently ranking as one of the country’s top locations of earning per capita – boosting local spending power and rental affordability as a result.
Average property prices in Derby also remain well below the national average, allowing investors to enter the market at a lower cost while still benefiting from healthy rental yields; and with excellent rail links to London, Birmingham, Sheffield, and Nottingham, as well as proximity to the M1 and East Midlands Airport, Derby appeals to a mix of local and commuter tenants.
Inward investment into the city and its surrounds through the delivery of thousands of new homes, commercial space and a 3,500-capacity performance venue via the £200m Becketwell regeneration scheme, South Derby Growth Zone and Infinity Garden Village initiatives complement improvements to the existing Derby Railway Station Gateway.
For investors willing to look past preconceptions, Derby offers the kind of balance between yield potential, economic stability, and growth prospects that is often hard to find in traditional hotspots.