The Data Behind Derby’s Rental Yield Surge

Author

Solomun Beyene
July 31, 2025

Good morning,

I came across some data that really caught my eye — and if you’re like me and love following the money, you’ll find this interesting.

When I say "follow the money," I mean looking at where major developers are putting their budget.

We’ve been talking about Derby a lot recently, especially the big regeneration projects happening there.

But here's the real question:

💡 What if those very developments are directly responsible for Derby’s sharp rise in rental yields?

The data shows a strong link — developer investment and yield growth are moving in sync.

It’s one of the clearest examples of how property investment and regeneration go hand-in-hand.

Let’s dive in.

This Week’s Biggest News…….

  1. Rightmove Cuts Price Forecast
    Asking prices are down, and Rightmove now expects just 2% growth this year

  2. Hamptons Downgrades Rental Outlook
    Rental growth expectations drop from 4.5% to 1%.

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The Numbers Tell a Compelling Story

Derby's rental market has undergone a remarkable transformation over the past five years.

The data shows that major regeneration projects have had the most direct impact.

Our analysis reveals a city that has fundamentally changed its investment appeal.

With rental yields climbing from 3.9% in 2019 to an impressive 5.06% in 2025

Rental Yield Growth: From Modest to Market-Leading

Derby's rental yields have experienced consistent growth, representing a 30% improvement over five years.

This upward trajectory reflects both rising rental demand and the city's strategic position in the UK property market.

Derby rental yields have increased consistently from 3.9% in 2019 to 5.06% in 2025, representing a 30% improvement driven by major regeneration projects

The data reveals several key phases in Derby's transformation. The initial growth from 2019-2021 was modest, with yields moving from 3.9% to 4.1%.

However, the period from 2022 onwards shows accelerated growth, coinciding with major regeneration projects coming online.

How These Timelines Match the Rental Yield Changes

  • 2019–2021:
    Nightingale Quarter (£175M): Redevelopment of the former Derbyshire Royal Infirmary site into 925 homes.

  • 2021–2023:
    Becketwell apartments + public square: Landmark £200M regeneration gets underway.

  • 2023–2025:
    Becketwell Performance Venue + Assembly Rooms redevelopment ramp up.
    Rental yields surge as these open to residents and visitors.

When you chart Derby’s rental yields year-by-year, these construction periods align closely with the observed jumps in yields, particularly after 2021.

The Data Analysis: Government Sources Confirm the Trend

According to the Office for National Statistics, Derby's housing market shows remarkable resilience:

  • Average house price in May 2025: £211,000 (6.7% annual increase)

  • Flats showing strongest growth: 12.1% price increase year-on-year

  • Private rents: £840 monthly average (11.4% annual increase)

Property Listing

Detail

Value

Price of property

£155,000*

Beds/Baths

3/1

Deposit (25% of property price)

£38,750

Expected Monthly Income

£1,150

Expected Monthly Expenses

£532.50

Expected Monthly Cash Flow

£617.50

Expected ROI

16.21%

Detail

Value

Price of property

£135,000*

Beds/Baths

3/1

Deposit (25% of property price)

£33,750

Expected Monthly Income

£975

Expected Monthly Expenses

£460.00

Expected Monthly Cash Flow

£515.00

Expected ROI

15.56%

Detail

Value

Price of property

£165,000

Beds/Baths

3/1

Deposit (25% of property price)

£41,250

Expected Monthly Income

£900

Expected Monthly Expenses

£527.50

Expected Monthly Cash Flow

£372.50

Expected ROI

9.18%

Bottom Line

The data couldn’t be clearer:

Derby is living proof that when you follow the money—tracking where the cranes are rising and city blocks are transforming.

These are were you often find the best returns.

The timelines of Derby’s biggest regeneration projects almost perfectly map onto the rental yield jump we’ve seen since 2019.

Whether it’s the Nightingale Quarter with its new homes, Becketwell’s vibrant community build, or the Assembly Rooms redevelopment igniting the city centre.

These developments aren’t just changing the skyline—they’re driving investor returns.

For property investors and data-watchers alike, Derby shows that regeneration is more than just a buzzword.

It’s a tangible force shaping demand, rental values, and ultimately, your yield.

As these projects reach completion and new ones begin.

Derby’s story offers a blueprint for spotting yield opportunities elsewhere.

Keep your eye on the development pipeline, and you just might catch the next wave.

To Do List

Thinking about investing in Derby?

These are the postcodes to keep an eye on.


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