The future of the Derby rental market..

Derby Cathedral, Irongate

It might surprise some readers that the average rent, that tenants have had to pay for a rental property in Derby, are around 4% to 5% lower than the peak of Spring 2008. After Spring of 2008. There was a major dip in the rents that were being achieved for Derby property of around 10% to 11% in late 2008 and early 2009. However, since 2010, rents have steadily risen by around 1% to 1.5% (depending on area) a year since the credit crunch and in 2013 rolling into 2014, a lack of decently presented stock available to rent means rental averages are, in the main, rising.

Rents have steadily risen in 2013, despite the squeeze on Derby wages, due in part to the demand of tenants from Nottingham who are happy to commute. There are still plenty of tenants willing to pay for well maintained properties in great locations, such as Ockbrook and commute from Spondon into central Nottingham in 24 minutes.

At the start of 2012, the average rent in Derby was approximately £491 per month (a decent rise from the 2009 average of £476 per month). As we go into the Spring of 2014, average rents in Derby stand at £498 per month.

From a landlord perspective, the steady rise in rents is good news, as ideally rents need to keep up with inflation to maintain investment returns. Property prices in Derby are also starting (nearly 7% in the last 12 months) to rise after large falls since the credit crunch of 2008, so maybe Derby could be one of the few areas across the UK where it might be possible to secure capital growth returns and potentially higher income (yields) in the future.

As my colleague and Managing Director, Susan Cope has always said, "It all comes down to buying the right property, in the right location, for the best price possible, and that is where we can help. We are a lettings agent, not an estate agent that does lettings on the side. As we don't generally sell property, we can look at the whole of the market in Derby, and just like a price comparison website, if you trust what we say, we are one step closer to potentially getting your business, because if you trust our opinion, you might trust us to find you a tenant for the property. We give our opinion without the expectation you have to give us the business though .. the choice is always yours Mr and Mrs landlord, as there is always, no obligation."

With that considered, it’s just as much in our interests, as it is yours, very much in our interests that you buy something that’s sensible and lettable – we don’t want you buying a dud, or something where the figures don’t stack up!

Feel free to pop through the door of our offices on St James Street or send me an email to simonj@professionalproperties.co.uk