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Is Derby a good place to buy to let?
On the numbers, Derby holds up well. A typical terraced house costs £165,000 and rents for about £856 a month, a gross yield of around 6.2%. Rents rose 4.7% in the year to September 2026, and there is no selective licensing to pay for.
Here are gross yields across Derby and the Derbyshire towns around it, worked out from real sold prices and official rents, plus the things to check before you buy. Updated November 2026.
Rental yields across Derby
| Area | Typical house price | Rent a month | Gross yield | Semi-detached | Flat |
|---|---|---|---|---|---|
| Derby | £165,000 | £856 | 6.2% | 5.1% | 7.5% |
| Alvaston | £167,250 | £856 | 6.1% | 5.5% | Too few sales |
| Chaddesden | £170,000 | £856 | 6.0% | 5.8% | Too few sales |
| Oakwood | £170,000 | £856 | 6.0% | 5.3% | Too few sales |
| Mickleover | £191,250 | £856 | 5.4% | 4.2% | 6.6% |
| Spondon | £193,750 | £856 | 5.3% | 4.9% | Too few sales |
| Littleover | £194,000 | £856 | 5.3% | 4.4% | Too few sales |
| Chellaston | £235,475 | £856 | 4.4% | 4.5% | Too few sales |
| Allestree (semi) | £270,000 | £925 | 4.1% | 4.1% | 10.3% |
Typical price is the median price of terraced houses sold in each area in the 12 months to the end of August 2026, from HM Land Registry. Rent is the ONS average for terraced houses across the council area, so yields in the dearer parts of a council area are understated and the cheaper parts overstated. Flat yields can be inflated by cheap retirement and leasehold flats. Gross yield is a year's rent divided by the price, before any costs.
Rental yields in the Derbyshire towns
| Area | Typical house price | Rent a month | Gross yield | Semi-detached | Flat |
|---|---|---|---|---|---|
| Alfreton | £130,000 | £779 | 7.2% | 5.8% | Too few sales |
| Heanor | £145,000 | £779 | 6.4% | 5.2% | Too few sales |
| Swadlincote | £165,000 | £875 | 6.4% | 5.5% | Too few sales |
| Ilkeston | £160,000 | £810 | 6.1% | 5.5% | 8.3% |
| Ripley | £160,000 | £779 | 5.8% | 5.1% | Too few sales |
| Long Eaton | £170,000 | £810 | 5.7% | 4.9% | 6.4% |
| Belper | £199,475 | £779 | 4.7% | 4.1% | 4.6% |
| Melbourne | £238,875 | £875 | 4.4% | 3.5% | Too few sales |
| Ashbourne | £215,000 | £776 | 4.3% | 4.5% | 5.8% |
| Duffield | £225,000 | £779 | 4.2% | 3.2% | Too few sales |
Typical price is the median price of terraced houses sold in each area in the 12 months to the end of August 2026, from HM Land Registry. Rent is the ONS average for terraced houses across the council area, so yields in the dearer parts of a council area are understated and the cheaper parts overstated. Flat yields can be inflated by cheap retirement and leasehold flats. Gross yield is a year's rent divided by the price, before any costs.
Why landlords buy in Derby
- Rents are rising. Up 4.7% in a year, to an average of £871 a month, against 1.7% in Nottingham.
- Affordable prices. The median Derby house sold for £218,000 in the 12 months to the end of August 2026.
- Steady tenant demand. Large employers such as Rolls-Royce, the Royal Derby Hospital and the University of Derby, plus fast trains to London, Birmingham and Nottingham.
- No selective licensing. Nottingham City landlords pay £759 to £1,318 a property for a licence. Derby City Council does not run a scheme. See our Nottingham licensing guide for comparison.
What to check before you buy
- Net yield, not gross. Take off the mortgage interest, management at 8%, repairs, insurance, certificates and a few empty weeks a year.
- The EPC. Rented homes are expected to need an EPC of C by 2030. A D or E rated house may need work, so price it in.
- The street, not the area. Yields and tenant demand change from street to street. Ask us what similar homes nearby are letting for now.
- HMOs. Letting to five or more sharers needs a mandatory HMO licence, and some parts of Derby restrict new HMOs through planning. Check before you buy.
- The new rules. Since 1 May 2026 every tenancy is periodic and Section 21 has gone. Read our Renters' Rights Act guide and the landlord register dates.
Need a buy to let mortgage? Our sister company Option Finance arranges buy to let and limited company mortgages. Once you own it, we manage it at 8% with no VAT and no set-up fee, or 7% with 5 or more properties. See average rent in Derby for the full rent figures.
Questions about buying to let in Derby
Is Derby a good place to buy to let?
For yield, often yes. Terraced houses in Derby sold for a median of £165,000 and rent for an average of £856 a month, a gross yield of about 6.2%. Rents rose 4.7% in the year to September 2026, and Derby has no selective licensing scheme.
Which areas of Derby have the best rental yields?
The cheaper, terraced areas close to the city centre and on the east side of the city usually give the highest gross yields. The suburbs to the west and north, such as Mickleover, Allestree and Littleover, cost more to buy and give lower yields but tend to attract longer-staying families.
Do I need a licence to let in Derby?
Derby City Council does not run selective or additional licensing, so a standard family or single let does not need a council licence. A house let to five or more people from two or more households needs a mandatory HMO licence.
What is the difference between gross and net yield?
Gross yield is a year’s rent divided by the price. Net yield takes off the costs: mortgage interest, management, repairs, insurance, certificates and any empty weeks. Net is what you actually make, so work it out before you buy.
Sold prices: HM Land Registry Price Paid Data, the 12 months to the end of August 2026, Crown copyright. Rents: ONS Price Index of Private Rents, September 2026. This is general information, not financial advice.
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