The best places to invest in property in Nottingham

Are you looking to invest in property in Nottingham? As letting agents, Benwell Daykin can help you find the perfect place to buy to let.

Why choose Nottingham?

So you’re likely to have already done your research. Whether you’re local to the city or if you’ve just been looking for high investment yields, you’ll know that Nottingham has what you’re looking for. Property prices in Nottingham have been consistently rising for a long time and the city often has some of the highest growth across the country, month on month.

So why is this? Well, Nottingham is thriving. It’s an epicentre for business and innovation – We have some huge businesses here such as Boots, Experian and Eon which have created many many jobs. Nottingham has the largest teaching hospital in the UK as well, the Queen’s Medical Centre.

We also have a huge student population – an estimated 65,000 students across two universities (Source: Nottinghamshire Live) – Nottingham Trent University and the University of Nottingham.

This just means that people are flocking to the city all the time, and of course they need somewhere to live.

What else does Nottingham have to offer?

Let’s look at why else people would choose to live in Nottingham.

If you’re looking for night life then Nottingham is not to be missed. The variety of bars and restaurants is huge, but that’s not all.

Nottingham is home to some huge sporting outfits, including Nottingham Forest, Notts County, Trent Bridge Cricket Ground, The Nottingham Panthers Ice Hockey and Holme Pierrepont for water sports.

Transportation is also fantastic. We have the NET tram network which goes to many of the suburbs, as well as a quality bus network. We also have the main Nottingham rail station and will soon have an HS2 station in nearby Toton.

Nottingham property prices

Sales Prices

At the time of writing in 2023, Nottingham has seen the highest house price growth across the country in the last 12 months. (Source: Hometrack). This growth currently sits at +10.9 per cent, followed by Manchester at 9.3 per cent and Birmingham at 9.2 per cent.

The average property price now sits at £198,000.

Rental Prices

Average rental prices in Nottingham now stand at £1,319 per month (Source: Home.co.uk). This is across all lettings properties in the city.

If we break this down, the average 2 bed rental price is currently £1,068 and the average 3 bed is £1,298. The average 1 bedroom is currently renting for £823 per calendar month.

Obviously these prices depend on location – You are likely to get higher rents for a 1 bedroom flat, furbished to a high standard, in a popular city centre location.

Which areas in Nottingham should you choose?

Nottingham has many suburbs surrounding the city, all with rental property in high demand.

Nottinghamshire is split into four main boroughs, run by different councils. These are City of Nottingham, Rushcliffe, Gedling, Broxtowe and Erewash.

Bear in mind that almost every property in the City Council region now has a Selective Licensing scheme in place. This means you have to pay a fee every 5 years and meet certain conditions, both with your property and as a landlord. You can find out more about Selective Licensing here.

If you’re looking to rent to students then you generally need to be looking at buying a property either within the city centre, or near to the Nottingham University campus in Beeston.

If families are your preferred tenants then aim for any of the suburbs such as Arnold, Mapperley, Hucknall, Stapleford, Long Eaton and many more.

Looking for more high-end rental properties? The more affluent areas are often said to be places such as West Bridgford, Wollaton, Mapperley Park and The Park.

Of course, there’s also many great villages such as Ruddington where we are based.

Need more rental property advice?

Talk to our friendly lettings team today on 0115 990 2007 or use the contact form below.

We’d be happy to help you find your rental property or a suitable tenant across Nottinghamshire.

Why are rents rising in the housing market?

This surge in rental prices is heavily impacted by a severe supply and demand imbalance. The average letting agent currently has just eight homes available to rent, with the rest of their stock all tenanted and unlikely to change.

With the cost of living ever increasing, renters do not want to spend extra money moving home.

Another reason for this is that Landlords are looking to sell some of their properties. This is both down to the cost of living but also with so many legislation changes over the last few years.

According to Zoopla, currently, approximately 3 in 4 renters will decide to stay in their current property.

Key rental takeaways

These are the key facts taken from Zoopla’s research:

Renters are choosing two-bed apartments over three-bed family homes to reduce outgoings as the cost of living rises
Rents on new lets have gone up £115 per calendar month compared with this time last year, rising faster than wages
In a market where demand is massively outstripping supply, rents are likely to keep going up into 2023

Rental growth has accelerated over the last 12 months from an annual rate of less than 2% in July 2021 to 12.3% today, while rental growth is out-pacing earnings growth in all regions and countries of the UK. Rental growth is ranging from 7.6% in the North East to a staggering 18% in London – however, there are signs that rental growth is close to peaking.

How can Benwell Daykin Lettings help?

As letting agents in Nottingham, we want to strike a balance between helping rents to remain affordable, but at the same time allowing Landlords to make the most from their investment properties.

We are constantly monitoring market conditions to ensure the best possible rental prices are being achieved on all properties managed in our portfolio.

Worried about legislation? We take care of this for you!

We know exactly what it takes to ensure all properties are legally compliant. If a property is managed by Benwell Daykin then all of this is taken care of, without stress.

Tag: lettings