Why invest in buy-to-let in Nottingham
For those that don’t know the city, Nottingham is probably best known for its Robin Hood association and its distinctive castle. It was also a world leader in lace production, bicycles and medicinal drugs, has an award-winning public transport system, and its sporting reputation is renowned throughout the country, being christened the ‘home of English sport’ by the BBC.
The city is not only a major sporting centre for football, rugby, cricket, ice hockey and tennis, but is a haven for inward investment and redevelopment. It also has the strongest housing market in the UK (according to Zoopla) and it offers some of the cheapest properties of any city in the UK, with an average price of only £151,800.
A redevelopment of the Imperial Tobacco site will create new industrial spaces and new jobs, a transformation of the famous castle is expected to bring in an extra 400,000 visitors per year, HMRC is relocating 4000 full time employees from London to Nottingham’s Unity Square and a new hub at the Boot’s Enterprise Zone will bring new medical technologies to the market. The city’s new Creative Quarter has created 1000 new jobs recently.
Nottingham has a strong and growing student population of 57,000, with many graduates remaining in the city for employment as abundant job opportunities are up for grabs – especially in business and finance, life sciences, manufacturing and technology. The city’s Queen Medical Centre is the largest teaching hospital in the UK. 6000 people work here alone.
The strong employment market, increasing student population, major investment in the city and an excellent transport network should ensure a constant and growing demand for property rentals from students and young professionals alike.
Rental yields have been strong at 6.2% average last year, but a rising demand from students, graduate trainees and millennials should pull that trajectory upwards, with the potential for yields to reach new heights. Already parts of Nottingham have achieved yields of 11.99%, which is the highest in the UK, although this is in the inner-city suburbs. The more upmarket residential areas attain lower yields. Overall Nottingham is an evolving and forward-looking city with a huge demand for rental properties That demand should escalate over the coming years, making buy-to-let an attractive investment opportunity.