Where to Invest in Buy-to-Let in Nottingham10-01-2024 | North West
Are you a landlord looking to invest in a buy-to-let property in Nottingham? Our team of experts have compiled a comprehensive area guide on the many reasons why investing in Nottingham is a great way to expand your property portfolio.
Nestled in the heart of the East Midlands, Nottingham is a city rich in history and culture. Known for its links to the legendary Robin Hood, Nottingham offers a unique blend of heritage and modern living.
It’s a city that boasts beautiful architecture, vibrant cultural scenes, and excellent transportation links, making it a desirable place for residents and investors alike.
Here, we look at the reasons for investing in buy-to-let properties in Nottingham, as well as the best areas to invest in.
Why invest in Nottingham
With a population of more than 60,000 students belonging to Nottingham, it is safe to say that there is ample opportunity for landlords to invest in student accommodation to expand their property portfolio.
With a huge market for student/shared accommodation (which naturally brings higher rental income), Nottingham is a lucrative city to invest in. Also, the city holds many young professionals, promising a thriving economy.
The city’s economy is estimated to sit comfortably at £12 billion and is said to be growing at one of the fastest rates of any major city in the UK. The Nottingham Economic Recovery & Renewal Plan sets out a plan for the city to become an “inclusive, green, creative, and digitally enabled city, widely recognised as an internationally renowned city of culture, creativity & innovation, the UK’s first carbon neutral city, and a city which offers opportunities for everyone” (Nottingham City Council, pg 4).
As well as the economic benefits of the renewal plan, Nottingham also boasts an award-winning transport system. The tram stretches over 32km and the rail services run nationwide. Bigger cities like London and Manchester can also be easily reached with excellent transport links.
Regeneration projects in Nottingham
There are a few regeneration projects taking place in Nottingham currently, all of which will hugely benefit you as a landlord looking to invest in a buy-to-let here.
Trent Basin is a new and sustainable community that has been developed alongside the River Trent. The new homes and apartments that have been built are all low-energy and have been designed by award-winning architects.
As of September 2023, planning approval has been granted for implementing the fourth phase of Trent Basin where 111 new homes will be built on the north bank of the river. A further 90 homes have been given outline consent.
A former police and fire station, Guildhall is classed as a Grade 2 Listed Building, meaning that the building needs to be preserved. A careful upscale has been planned for this building situated near Nottingham Trent University and is less than a 5-minute walk from Old Market Square.
The building will be home to a 4-star hotel with a restaurant and bar, spa facilities and a function space.
Within the Broadmarsh area, there are a few different regeneration projects that have been implemented to strengthen the city’s economy.
Nottingham College’s doors opened in 2021 and is a new and vibrant college with as many as 2,000 students enrolled.
Nottingham Castle has been refurbished and has opened up accessibility and optimised space within the castle, caves and grounds. While the upkeep and conservation of the castle has been nothing short of diligent, the castle plays an important role in the heritage of Nottingham.
Things to do in Nottingham
The city is not just a great place to invest but also to live. Nottingham boasts a range of attractions: from the historic Nottingham Castle that we mentioned previously, to the contemporary art scene at the Nottingham Contemporary gallery.
The city is also renowned for its dining and nightlife, with an array of restaurants, bars, and clubs. For those who love the outdoors, there are numerous parks and green spaces, like the ancient Sherwood Forest, offering a retreat from city life.
Here is a list of other popular things to do in Nottingham:
- The Lace Market Hotel for an afternoon tea
- The Robin Hood Experience to find out more about the city’s most popular vigilante
- The National Justice Museum
- Newstead Abbey to delve into the world of poetry
- Highfields Park for nature lovers and dog walkers
This is definitely not an exhaustive list; there is much to do in the wonderful city of Nottingham and, by investing in a buy-to-let here, your tenants will have plenty to keep them entertained over weekends or during downtime.
Property market in Nottingham
So, we know there is a lot to do in Nottingham, but what is the property market like?
Nottingham’s property market is diverse, offering something for every investor. From modern city-centre apartments to traditional suburban homes, the city caters to a range of preferences and budgets. The property prices in Nottingham are generally more affordable compared to other major UK cities, making it an attractive market for first-time and seasoned investors.
Property has seen major increases in property prices over the past few years and was voted in the top ten best places to live by the Sunday Times in 2020 due to its “efficient transport and…revitalised centre” (“Nottingham — Best Places to Live in the UK 2020”).
Besides its rich cultural heritage and being voted as one of the best places to live, the property market in Nottingham is thriving and property sits at an average price of “£187,772 as of October 2023” (Pape). This means that property in Nottingham is £100k cheaper than the UK average.
Rental yield in Nottingham
The average rental yield in Nottingham sits at 8.78%; anything between 5%-6% is considered a good rental yield. This is one of the most compelling reasons to invest in Nottingham as a landlord looking for buy-to-let property.
The city offers some of the highest yields in the Midlands, especially in areas popular with students and young professionals. The consistent demand for rental properties ensures a good return on investment, with some areas of the city offering yields significantly above the national average.
The best areas to invest in a buy-to-let in Nottingham
When it comes to choosing the best areas for buy-to-let investments in Nottingham, there are several hotspots to consider, such as:
- NG7 – Hyson Green, Radford, Lenton, and the University of Nottingham with an average property price of £195,705 and rental yield of 8.3%
- NG1 – Nottingham City Centre with an average property price of £174,064 and rental yield of 8.3%
- NG9 – Beeston, Stapleford, Lenton Abbey, Chilwell, Trowell, and Bramcote with an average property price of £276,029 and a rental yield of 6.2%
- NG6 – Bestwood Village, Bulwell and Old Basford with and average property price of £178,790 and a rental yield of 5.5%
- NG3 – Carlton, Sneinton, St Ann’s and Mapperley with an average property price of £244,619 and a rental yield of 5.2%
Each area has its unique appeal and investment potential, depending on your target tenant demographic and investment goals.
Nottingham presents an attractive opportunity for you as a buy-to-let landlord, offering a combination of high rental yields, ongoing regeneration, and a vibrant lifestyle. With careful research and consideration of the city’s diverse neighbourhoods, you can find lucrative opportunities in this dynamic and growing city.
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