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Best areas to buy to let in Nottingham
Ranked by gross yield on terraced houses, the strongest areas in our figures are Nottingham at 6.7%, Eastwood at 6.6% and Carlton at 5.9%. Inside the city boundary, take off the cost of a selective licence before you compare.
Every figure here comes from real sold prices and official rents, not asking prices. Updated November 2026.
Rental yields in and around Nottingham
| Area | Typical house price | Rent a month | Gross yield | Semi-detached | Flat |
|---|---|---|---|---|---|
| Nottingham | £179,000 | £995 | 6.7% | 6.0% | 7.7% |
| Eastwood | £165,000 | £911 | 6.6% | 6.5% | Too few sales |
| Carlton | £180,000 | £890 | 5.9% | 5.0% | 6.9% |
| Stapleford | £185,000 | £911 | 5.9% | 5.5% | Too few sales |
| Bingham | £210,000 | £1,021 | 5.8% | 5.1% | 6.6% |
| Arnold | £185,800 | £890 | 5.7% | 5.1% | 7.6% |
| Hucknall | £171,500 | £780 | 5.5% | 4.9% | 6.9% |
| Beeston | £225,000 | £911 | 4.9% | 4.7% | 5.8% |
| West Bridgford | £300,000 | £1,021 | 4.1% | 3.2% | 6.1% |
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.
The licence effect inside Nottingham City
Most of Nottingham City is covered by selective licensing. A licence for a landlord who is not accredited costs £950 a property and the current scheme runs to the end of November 2028. Spread over five years, that is about £190 a year, or £16 a month off your rent. It does not wipe out the city's yield advantage, but it narrows it. The towns outside the city boundary, such as Arnold, Carlton, Beeston, Stapleford, Eastwood, Hucknall and West Bridgford, sit in other council areas and are not covered. See our Nottingham selective licensing guide.
What drives demand
- Two large universities, the University of Nottingham and Nottingham Trent, keep demand for flats and shared houses high near the city centre, Lenton and Beeston.
- The hospitals and the city centre bring professional tenants who want to be close to work and the tram.
- The tram network links Hucknall, Beeston, Clifton and Toton Lane to the centre, which helps rents in the towns along it.
- Rents averaged £1,015 a month across Nottingham in September 2026, up 1.7% in a year. The median house in the city sold for £200,000 in the 12 months to the end of August 2026.
What to check before you buy
- Whether the address is in a licensing area, and whether you are buying an HMO, which needs its own licence.
- Net yield after mortgage interest, management, repairs, insurance, the licence and empty weeks.
- The EPC. Rented homes are expected to need a C by 2030.
- What similar homes on the street actually let for now, not the area average.
Our sister company Option Finance arranges buy to let and limited company mortgages. We manage Nottingham lets at 8% with no VAT and no set-up fee, or 7% for 5 or more properties. See letting agents in Nottingham, or compare with buying to let in Derby.
Questions about buying to let in Nottingham
What are the best areas to buy to let in Nottingham?
On gross yield for terraced houses, the highest in our figures are Nottingham (6.7%), Eastwood (6.6%), Carlton (5.9%). West Bridgford and Beeston give lower yields but attract professionals and families who tend to stay longer.
Do I need a licence to let in Nottingham?
In much of Nottingham City, yes. The selective licensing scheme covers designated areas with more than 30,000 rented homes, and a licence costs £759 to £1,318 a property. Towns outside the city boundary, such as Beeston, Arnold, Carlton, Hucknall and West Bridgford, are not covered.
What is the average rent in Nottingham?
£1,015 a month in September 2026, according to the ONS, up 1.7% on a year earlier.
Is it better to buy inside or outside the city boundary?
Inside, prices are lower and yields higher, but you may need a selective licence and the paperwork that comes with it. Outside, in places like Arnold, Carlton or Stapleford, there is no selective licence and tenants often stay longer, but you pay more to 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. Licence fees: Nottingham City Council, from 1 April 2026. This is general information, not financial advice.
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