Hey Everyone,

Can I let you in on something?

I just viewed a property in the Derby area — and while I was there, I came across some pretty interesting stuff that grabbed my attention.

I actually mentioned Derby earlier this year in one of our newsletters as a city to keep an eye on... but we didn’t really dive into the data back then.

But there was one metric that caught my attention — and to be honest, it had me slightly on alert. I’ll break that down shortly.

Now, that’s not to say Derby isn’t promising. I listed it as one of the emerging cities to watch out for.

But sometimes, when a city relies heavily on certain sectors, it can be a bit more volatile than others.

Still, it’s definitely one to keep on the radar.

So today, let’s take a closer look at Derby — it’s home to the University of Derby, which is well known for its engineering, health, and creative programs.

Some even call it the gateway to the Peak District, with super easy access to the national park.

Let’s dive in.

The Data Snapshot: Why This Area?

1. 👀 Area: Derby, UK

2. 📈 Population Growth: +5.1% between 2011 and 2021 (from ~248,800 to ~261,400 residents) - Derby University present in the area

3. 💼 Unemployment Rate: 5.3% (vs national avg. 4.6%)

4. 🚆 Transport: Derby is a major rail hub in the East Midlands, offering direct, frequent trains to London St Pancras with journey times as fast as 1 hour 27 minutes

5. 🏠 Home Ownership: 59% of Derby households are owner-occupied

6. 💰 Affordability: Avg. price £206,000

7. 🏗️ New Developments:

   1. Derby is set to benefit from up to £2 billion in government funding over the next five years, the largest transport investment in the region for a generation.

   2. The NHS is a major employer in Derby, with a new five-year plan (2023–2028) focused on expanding services, tackling health inequalities, and investing in workforce skills.
      

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Is Derby on the Rise or on the Edge?

I had mixed feelings when I viewed a property in Derby this weekend. The reason? I knew what the data was saying — but I still felt like I had to see it for myself.

There were a few stats that really caught my attention.

Population

Derby’s population has been growing steadily over the past 10 years, with a 5.1% increase. That’s a promising sign — and something I generally look out for when assessing a city’s potential.

The city is also home to a well-regarded university, meaning a notable portion of the population is made up of students.

Specializing in engineering and technology, the University of Derby offers a wide range of programs. Its partnerships with major industry players like Rolls-Royce, Alstom, and Toyota, as well as its involvement in the Nuclear Skills Academy, show a strong commitment from large organizations to invest in local talent and innovation.

Transport

I took the train — and it couldn’t have been easier.

From St Pancras, I caught a direct train to Derby. The whole journey, from leaving my home to arriving at the property, took under two hours.

That kind of easy access to London is a real bonus — and it’s something that definitely adds to Derby’s appeal.

Developments

This is where things really started to stack up for me.

Derby is set to receive £2 billion in government funding to restructure and develop key areas across the city.

That’s a huge amount of investment — and not something any serious investor should ignore.

It signals long-term commitment and transformation that could significantly boost the city’s prospects.

Now lets talk about that alert that I mentioned in my intro………..

Have you guessed it from the snapshot?

Unemployment rate……..its at 5.3% (vs national avg. 4.6%).

Now is this just a one off or is the a pattern we can see that can tell us the bigger picture.

Derby vs UK Unemployment Rate: 2020–2025

Above, we can see data compiled for the past 5 years.

In fact for the past 5 years (except for 2022) Derby unemployment rate has been above the UK average.

And that’s what raised the alarm initially and asked myself why is it this stat that seems to failing compared to other metrics.

3 main reason I can gather

1. Skills Gaps and Hard-to-Fill Vacancies

   Around 31% of employers in the Derby/Nottingham area report hard-to-fill vacancies, above the national average of 28%.

   The main reasons?

   A lack of skilled workers and poor pay or conditions — creating a mismatch where jobs go unfilled while locals remain unemployed.

2. Labour Market Polarization

   Derby’s workforce is polarized, with a concentration of high-value, skilled jobs—especially in manufacturing and technical sectors—alongside a large share of unskilled or elementary roles.

   This creates a gap in “middle-skill” opportunities, making it harder for those without advanced qualifications to find sustainable employment.

3. Deprivation and Unequal Access to Opportunity

   Despite having some well-performing sectors, Derby has high levels of deprivation: 45% of its neighborhoods are among the 30% most deprived in England, and 19% are in the bottom 10% nationally.

   Economic opportunity is not evenly spread, with some communities facing persistent barriers to employment, including lower educational attainment and limited access to training.

BOTTOM LINE: Is Derby on the Rise or on the Edge?

Derby shows strong signs of growth and long-term potential, but also comes with a few red flags that investors should be aware of.

On one hand, the city boasts a growing population, a respected university with strong industry ties, excellent transport links to London, and a major £2 billion government investment in regeneration.

These are all strong indicators of a city on the rise.

However, Derby also has a consistently higher-than-average unemployment rate, and this isn’t new — it’s been a pattern over several years.

The issue seems tied to skills mismatches, a polarized job market (too many high- and low-skilled roles, with little in the middle), and localized deprivation where access to opportunity is uneven.

✅ Pros for Investors

• Population growth (5.1%) supports long-term housing demand.

• University of Derby and industry partnerships (Rolls-Royce, Toyota) suggest talent pipelines and innovation.

• Fast train to London (under 2 hours) makes Derby a commuter-friendly city.

• £2 billion government investment points to confidence in Derby’s regeneration and future.

⚠️ Cons/Risks to Watch

• Unemployment rate consistently above UK average — a possible drag on economic performance.

• Skills gap leads to unfilled roles despite people looking for work.

• Workforce polarisation — lack of middle-skill jobs makes the market unstable.

• High deprivation levels could slow down broad-based economic growth and affect certain neighbourhoods more than others.

What This Means for Investors?

Derby is not without risk, but for investors who can identify pockets of opportunity, especially around regeneration zones, high end areas and student or commuter markets, it may offer strong long-term returns.

I’d focus on these areas, as they’re likely to benefit first from any potential uplift — and based on the data, I believe that uplift is coming to Derby.

Just be mindful of the city's uneven economic landscape, and focus on areas that are set to benefit most from upcoming investment and development.

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Tip Of The Week

“The 2-Hour Rule”
Cities within 2 hours of London by train are increasingly attractive to remote workers and hybrid commuters. Derby fits the bill — keep an eye on that ripple effect.