Inside the UK’s Most Underrated Student Property Market

Good morning,

What if I told you the best UK student property investment isn’t in London, Manchester, or even Nottingham.

Lets talk numbers:

34,000 students and only 1.67% of properties cater to them.

This city - is a ticking opportunity.

Let’s dive in.

In this newsletter, you'll find...

• This Week’s Biggest News…….

• Derby Student Market: A Data-Driven Investment Opportunity

• Property Listings

• Bottom Line

• What's Next?

• Feedback

This Week’s Biggest News…….

1. North-south divide in house price inflation - who’s winning the race?

2. 6 out of 10 landlords have increased rent in the last few years 

Derby Student Market: A Data-Driven Investment Opportunity

I’m talking Derby. And not because I’m obsessed with the city - but i’m in love with the numbers.

The data is crystal clear – Derby represents one of the most compelling student property investment markets in the UK.

Schools out for the summer - but this is the moment to recalibrate for investors.

That’s because.

With the University of Derby hosting 34,000 students across all study levels and only 1.67% of the city's properties catering specifically to student accommodation.

If you ever wanted to notice what a ‘classic supply-demand imbalance’ looks like - this is what it is.

The Numbers That Matter

Derby has claimed the top spot nationally for student rental yields at 8.67% – a figure that should make any property investor take notice.

To put this in perspective, this yield is significantly higher than most UK university cities and nearly double what you'd find in traditional property hotspots.

The city ranks as the 15th cheapest in the UK for student accommodation, with average monthly rents of £672 compared to the national student average of £689.

The University of Derby isn't just another educational institution – it's a major economic driver with 34,000 students representing 13.2% of Derby's total population.

The university operates across multiple campuses:

• Main Kedleston Road Campus (DE22 postcode area)

• City Centre campuses including One Friar Gate Square, Markeaton Street, and Britannia Mill

• Specialist facilities spread across the city

This multi-campus approach creates rental demand across different postcode areas rather than concentrating it in one location, providing investors with diverse opportunities throughout the city.

The Supply-Demand Mathematics

Here's where the opportunity becomes undeniable.

With 34,000 students in the city but only 1.67% of properties designed for student accommodation, Derby has one of the most significant supply shortages in the UK student market.

Compare this to Nottingham, where 11.79% of properties cater to students, and you begin to understand the scale of the gap.

This shortage translates directly into consistent demand and pricing power for landlords.

University halls can accommodate only a fraction of the student population, leaving thousands seeking private accommodation each academic year.

Property Listing

What postcodes to be investing in?

I would focus in DE1 and DE21 areas as these emerge as the standout choice for student property investors.

It offers the optimal combination of low entry costs and high rental yields while being perfectly positioned for students attending the city centre campuses.

So lets take a look at some properties in this area.

Bottom Line

Derby is a hot city and one as investors, must be looking at – low competition, high demand, and exceptional rental returns.

Derby offers the kind of data-backed edge that smart investors look for before the crowd catches on.

With major investments underway and plenty of room for growth, Derby is quietly transforming — a city growing under the radar.

What’s Next?

Enjoyed this edition?

Share The Data Capital with your friends and follow us on Instagram @thedatacapital on Instagram.