Is Allestree the perfect place for a buy to let in Derby?

Information is so important when making decisions on what (or not) to buy when investing in Derby property. The demand for rental properties is much greater that the supply and some circumstances, we have four to five prospective tenants for each decent property. As always the demand is much greater for properties that are good areas. Also, we are noticing that tenants are staying longer in their chosen property with some tenants signing for the third and fourth years. This is obviously causing problems from the supply side so we are relying on new investment Landlords to bring in some new properties.

Today, I want to look at the Allestree to the North Western edge of Derby. By knowing the different areas of Derby, I can weigh up potential hotspots in the rental market and show potential landlords where there could be an opportunity.

The majority of properties sold in Allestree during the last 12 months were detached properties, selling for an average price of £252,200. Semi-detached properties sold for an average of £198,800, with flats fetching £77,300. Allestree, with an overall average price of £221,500, was similar in terms of sold prices to nearby Darley Abbey at £212,200, but was more expensive than Breadsall  at £178,300 and cheaper than Quarndon at £669,400.

In Allestree, there are 13,622 people living in 5,956 properties. It is the home ownership percentages that really got me interested, as it is this information, tied in with my intimate knowledge of the market, where we can match tenant demand to an under supply of rental properties. In Allestree, of those 5,956 households, 90.17% own their property (compared to the Derby average of 71.4%.)

There are only 416 rented properties in Allestree are in the private rented sector (7% of Allestree properties are privately rented compared with the Derby average of 15.6%). The reason the private rental sector is much lower is that Allestree has a high proportion of homeowners and hardly any local authority housing.

The properties do sell well, in fact 1,590 properties have changed hands since 2007. However, with such excellent demand from homeowners and tenants, this could be the right area to purchase your next buy to let investment.  Allestree might not have the stellar yields of Peartree and Chaddesden, but they are in the very respectable 4% to 6% range. However, where Allestree comes into its own is in its growth in property values. Allestree property values are 141.9% higher than the year 2000 (not too shabby when you consider that the overall Derby average is 116.3% higher over the same time frame).

Therefore, if you are considering buying a property for investment in the near future, as I don't sell property, I am always happy to give you my considered opinion on which property to buy (or not as the case may be) to give you what you want from your investment. If you are a landlord, new or old, I am certainly more than happy for you to pick up the phone or email me today!