Complete 2023 Guide.

Nottingham Property Investment

The Best Areas for Property Investment Nottingham 2023

Nottingham may not be the first city on your list for UK property investment.

But with low house prices and the highest rental yields in the UK property market (yes, you read that right), this East Midlands city could be the perfect place to start your property business.

Keep reading to find out wh

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nottingham-area-guide

Why Invest In Nottingham?

Although the blinding lights of London, Birmingham, and Manchester may catch your eye, the Nottingham property market is quietly generating some of the UK’s best returns.

With a perfect blend of affordable property prices, high rental income, and massive market growth, property investment in Nottingham offers an exciting prospect.

Here’s why you should invest in Nottingham investment property in 2022:

Invest In Nottingham For Affordable House Prices 

Likely the main appeal of Nottingham investment property is its affordability.

As of March 2022, Nottingham property prices are just £173,032, according to official Land Registry data.

This is over £101,000 less than the UK average and is more affordable than Newcastle, Manchester, Leeds, Sheffield, and Birmingham.

In fact, average property prices in Nottingham are below the UK average for every property type, as you can see in the table below:

Invest In Nottingham For Incredible Rental Returns 

Usually, low property prices mean lower rental income, but this isn’t the case in Nottingham.

Despite house prices falling below the UK average, Nottingham properties generate a monthly income of £1,337 on average – £268 above the UK average.

This means that Nottingham rental property currently provides average rental yields of 9.27%, the highest of any UK city.

Yes, seriously – the highest!

While a lot more goes into a successful investment than just rental yields (like tenant demand), it’s still an impressive return and shows the good potential behind property investment in Nottingham.

Invest in Nottingham for Huge Growth 

Aside from current high returns in the city, Nottingham also has huge potential for the future.

Over the last 12 months, average prices in Nottingham have increased by 7.18%.

While these record-breaking growth levels are unlikely to continue into the coming years, property experts like Savills believe that the East Midlands will still see strong growth.

According to the latest Savills residential forecast, properties in the East Midlands region will rise by 15.9% by 2026 – the joint-fifth highest in the UK.

As such, if you’re asking, “are house prices going up in Nottingham?” then yes, Nottingham prices are set to rise by 4% in 2022 alone.

Nottingham Property Investment Guide

Discover the advantages and considerations of investing in off-plan properties with our comprehensive guide.

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Property Investment Guide 2023

Best Areas to Invest in Nottingham 2023

So, where is the best place to make a Nottingham property investment in 2022?

We’ve done the hard work for you and worked out the top five Nottingham postcodes generating the highest rental yields in 2022.

NG18 

Average Property Price in NG18: £207,690 

Average Rental Yield in NG18: 7.63% 

Covering the market town of Mansfield, NG18 currently offers the highest rental yields in Nottingham.

Although house prices are above the city average, a sizable rental income of £1,320 PCM helps produce massive returns of 7.63%.

NG6 

Average Property Price in NG6: £164,092 

Average Rental Yield in NG18: 6.26% 

Moving north of the city, NG6 covers the market town of Bulwell and the suburb of Old Basford.

Despite rental values of just £856 PCM and thanks to the second-lowest property prices in Nottingham, NG6 is currently generating rental returns of 6.26%.

NG5 

Average Property Price in NG5: £206,967 

Average Rental Yield in NG5: 5.72% 

Travel to northeast Nottingham, and you’ll find this popular postcode.

Home to Sherwood, Arnold, Bestwood, Carrington, Top Valley, and Rise Park, NG5 offers some excellent family suburbs.

You can find properties in NG5 for £206,967 on average, with a rental income of £986 generating returns of 5.72% – not bad.

NG19 

Average Property Price in NG19: £175,177 

Average Rental Yield in NG19: 5.27% 

The fourth-highest yielding postcode in Nottingham is NG19.

Covering parts of Mansfield, NG19 is one of Nottingham’s most affordable locations.

However, with one of the lowest rental incomes in the city (21st highest out of 29), you can expect returns of around 5.27% in NG19.

NG20 

Average Property Price in NG20: £144,969 

Average Rental Yield in NG20: 5.17% 

Rounding out our list of the top five postcodes in Nottingham is NG20.

Covering the towns of Shirebrook and Warsop, NG20 offers the lowest house prices in Nottingham at £144,969 on average.

However, NG20 also offers the second-lowest rental income of £624 PCM, leaving returns of 5.17%.

Should I Invest in Nottingham City Centre? 

You may be shocked to see that the Nottingham City Centre postcodes of NG1 and NG2 didn’t make our list.

Using our data, NG1 and NG2 offer the tenth highest and 27th highest rental returns in Nottingham.

So, what gives? Is investing in Nottingham city centre a bad idea?

Not at all!

While a helpful insight, our data shouldn’t be the only deciding factor behind a property investment.

Although the average rental returns for an area may be lacking, that’s not to say you can’t find a top-class investment.

In fact, most people regard Nottingham’s city centre as the best place to invest in the city, with research from Totally Money in 2020 finding that the city centre generated over 11% returns at the time.

The bottom line is that you shouldn’t let a low area average put you off an investment. There are plenty of top areas to explore in Nottingham, including Radford, Lenton, Beeston, West Bridgford, Long Eaton, and more.

Is Nottingham a Good Place to Buy Property? 

Property investment is so much more than statistics, and this is also true for Nottingham property investments.

Although property in Nottingham generates some seriously high returns, it’s important to look past this appeal and understand what’s driving the market.

To do this, there are a few questions you should consider:

  1. What’s it like to live in Nottingham?
  2. Is Nottingham’s population growing?
  3. How old is the population?
  4. What are the business opportunities in Nottingham?
  5. Is there ongoing regeneration in Nottingham?

By answering these questions, you can understand why people want to live in a city and pinpoint the areas they’d be most interested in.

For the answers to these questions, you can check out the sections below as we explore Nottingham’s population, economy, ongoing regeneration, and transport and amenities.

Want to learn more about Nottingham property? View our complete guide.

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