What if Brian Clough had bought a house in Derby and Nottingham in 1995?

A couple of weeks ago saw the latest East Midlands derby between Derby and Nottingham Forest. As both sets of fans clapped when Brian Clough was remembered and it was an emotional moment – such a giant for both clubs.

Whilst driving down the A52, aptly named Brian Clough Way, I decided in this weeks article to look at how both cities property values had faired over the long term.

When a property increases in value over time, it is known as capital growth. Capital growth has been strong in recent times in both Nottingham and Derby, but the value of   property does go up as well as down, and of course the local conditions surrounding your property have a big effect.   Rental income is what the tenant pays you and, hopefully, this will grow over time too. If you divide the  annual rent into the value (or purchase price) of the property, this is your annual return.

A few weeks ago, I said that both cities were around 8% off the 2007 boom prices. Well, the Land Registry have just released the figures going back to 1995, and that my ‘Derby Property Blog’ reading friends, makes for a completely different story altogether.

Between 1995 and 2000, Nottingham property performed nearly a quarter better, rising by 4.3%, compared to 3.37% in our Derby. The next five years saw the property boom, with property values rising by an impressive 115% in Nottingham, but not as impressive as Derby, whose property values rose by 134.6%.
Derby continued to do better between 2005 and 2010, which if you recall was when we had the property crash. Whilst average values dropped by 11% between 2005 and 2010 in Nottingham, in Derby they only dropped by 3.7%. Finally, since 2010 and to the present day Nottingham property values have continued to drop, being 3.8% lower, whilst our property values in Derby have held firm and in fact have risen ever so slightly by 0.1%.

Nottingham might get all the headlines, but since 1995, if Brian had bought a house in Nottingham, it would have been 92.2% higher in value now, but in Derby, it would have been worth 135.2% higher.

Each landlord will have different needs and requirements in his or her property investment. Knowing what has happened to values in different cities, enables us to spot any trends or opportunities for buy to let landlords. You ought to see what has happened to the different suburbs in Derby .. that makes even more interesting reading! .. something I will share in future articles.

You know what I always say readers - 'Knowledge is Power'. When it comes to lettings and property investment, it couldn't be more true!

If you would like to discuss anything further then please pop in and see me, send me an email or call me directly on 07977 235545.

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