Your Ultimate Guide to Property Investment in Nottinghamshire

Key Takeaways

• Due to it’s central location, Nottinghamshire is a goldmine for property investment with diverse opportunities.
• Buy-to-let and HMOs are particularly popular and lucrative in this area when set up and managed well.
• Rental yield and capital appreciation are promising, with steady growth over the past 10 years and lots of investment into area.
• Tenant demographics are varied, offering a range of investment opportunities. With so much manufacturing and warehousing in the area, manual labour work is abundant, attracting a wide demographic of working tenants.

Are you ready to take advantage of the thriving Nottinghamshire property market and discover profitable investment opportunities?

If you’re reading this, chances are you’re keen on property investment. Maybe you’ve already started investing, or maybe you’re looking for an area to invest. Well let me tell you, you’ve hit the jackpot by considering Nottinghamshire. Consider this investment guide your starting point in your due diligence journey, filled with useful nuggets of information that will allow you to decide whether buying property in this incredible county is right for you!

Why invest in Nottingham or Nottinghamshire?

According to national media sources, Nottingham is one of the UK’s most underrated cities, despite it’s rich history and thriving lifestyle scene!

Here are 10 things that Nottingham and surrounding areas are famous for and why it is home to a diverse mix of property and people:

1. Nottingham Castle
2. The Caves of Nottingham
3. Robin Hood
4. The Birth Place of DH Lawrence
5. Trent Bridge Cricket Ground
6. Sherwood Forest
7. The National Justice Museum
8. The Theatre Royal
9. Lace Market
10. Wollaton Hall

Slightly less exciting, but vitally important if you’re considering buy-to-let in Nottingham, is NET (Nottingham Express Transit) which is the extensive tram network and It covers most areas of the city and most of the boroughs near Nottingham.

It also has the UK’s largest network of bus routes per 100,000 people, which is a major benefit when investing in Nottingham property where parking isn’t always easy.

When you take into account the train station and in particular the Robin Hood line, which connects Mansfield, Ashfield, Shirebrook and all the way up to Worksop, Nottinghamshire has one of the best public transport networks in the UK.

Property Investment in Nottingham vs Rest of the UK

This is the part of the post where a table of statistical data on average house prices and rents would be good, but I think we can all agree that the the past couple of years have been somewhat skewed!, however in our experience, the “new normal” we are settling into is actually even more favourable in Nottinghamshire than it was before.

As you leave London and travel north, property prices decrease and so do rents, but not at the same rate. Property prices tend to fall faster than rents, until you get further north and rents catch then catch up. Nottinghamshire and in particular, the towns north of Nottingham city centre seems to be a sweet spot, where rents are still relatively high, but property prices have fallen to a point that makes them accessible to more investors and this has created strong investment. 

When you compare Nottinghamshire property prices to other hotspots further south, they are more affordable. This makes it an excellent starting point for newcomers to the property investment scene. But don’t mistake affordability for lack of quality or potential. The rental yields here are very competitive, making it a win-win situation for investors.

Why Are Nottinghamshire’s Prices Rising?

The property prices in Nottinghamshire have been on an upward trajectory for over 10 years, and there’s a good reason for that. The area is seeing significant employment opportunities, especially in sectors like healthcare, education, and technology. Add to that the excellent connectivity to East Midlands Airport, most major UK cities and a expanding, well-maintained tram network, and you’ve got a recipe for property price growth. Nottingham city centre is buzzing with activity, and residential areas like Mansfield are gaining popularity, thanks to their proximity to Sports Direct and Amazon distribution centre.

Areas of development and growth in Nottinghamshire

With new developments like the EMA2 Amazon distribution centre, modernised Kings Mill Hospital and the expansion of Nottingham Trent University into Mansfield, the demand for accommodation outside Nottingham is ever increasing. Two of the best areas for investment include Mansfield and Ashfield, which are not only gaining popularity for the reasons mentioned above, but the community vibe and proximity to Sherwood Forest for those who enjoy the outdoors on their days off. These developments often come with modern amenities, including bars, restaurants and fast food outlets (yes, Mansfield now has a Nando’s!) adding further to the property values and increasing the demand for buy to let property.

Want Quick Facts on the Nottinghamshire Property Market?

• Average property price of a property over the past 12 months : £238,422
• Most common property sale: Semi-detached at an average of £205,742
• Average sold price up 6% over the past year, compared to the previous year
• Average sold price up 14% compared to the 2020 peak
• Average property rent: £1,351 pcm

What does the Nottingham property investment market look like?

Residential Buy-to-Let

The buy-to-let property market in Nottinghamshire is booming. With property price growth and a strong rental demand, investing in buy-to-let is a smart move. The rental yields are competitive, and there’s a constant influx of tenants, thanks to the area’s employment opportunities and educational institutions. This is an often overlooked strategy now that the more popular HMO and Serviced Accommodation strategies are dominating social media. There are plenty of Residential Buy-to-Let opportunities with ROI’s in excess of what some HMO’s are achieving. 

Areas of Nottinghamshire: Residential Buy-to-Let Property Investment Hotspots

When it comes to buy-to-let, some areas of Nottinghamshire stand out. Mansfield, Ashfield, Hucknall and Beeston are some of the more community-centric areas that offers a peaceful living environment outside of Nottingham city centre. It’s perfect for families and offers a good rental yield. The city centre, on the other hand, is ideal for young professionals and students, offering a range of buy-to-let properties from apartments to townhouses. Although the city of Nottingham is busy, there are quieter areas, around Nottingham Castle for example and particularly up towards The Park, which is considered one of the best areas of Nottingham. It could be considered the “Chelsea” of Nottingham. Whilst this is one of the better areas of Nottingham to invest, it is not known for it’s affordable property prices!

HMO market in Nottinghamshire

Areas of Nottinghamshire: HMO Property Investment Hotspots

HMOs are a big deal in Nottinghamshire, especially near the two universities, The University of Nottingham and Nottingham Trent University. however it’s important to note that there is an Article 4 Directive, which has affected the HMO property prices in Nottingham. This is in place to control the number of HMO developments and therefore planning permission is required, regardless of how many occupants. That said, student property is always in demand, making it a popular area for property investors. For those lucky enough to find already licences HMO’s for sale, the rental yields can be higher than other property types and voids are less of an issue due to the student cycle. If you are looking at Nottingham to invest, it is worth checking potential properties with Nottingham City Council before you commit. 

If you travel 20 minutes north of Nottingham City Centre, there are no shortages of buy-to-let hotspots. You’ll find towns like Mansfield, Sutton-in-Ashfield and Shirebrook which have strong demand and are not reliant on the Nottingham University market, which makes them popular with buy-to-let investors. In addition, the properties in these towns are even more accessible when you compare to the prices in Nottingham. The demand here is mainly “blue collar” workers, which are working tenants, but not necessarily in what considered “professional” jobs, such as Doctor, Dentist, Solicitor etc. The predominant work in this area is manual labour, factory and manufacturing work. Since the UK left Europe, we see less migrant workers from Eastern Europe, but this has been replaced with an influx of workers from commonwealth countries in sub-Saharan Africa and Asia, moving here for healthcare and nursing work.

Serviced Accommodation in Nottinghamshire

Areas of Nottinghamshire: Serviced Accommodation Property Investment Hotspots

Serviced accommodation properties are gaining traction as a viable alternative to hotels. These properties offer short-term stays and are popular among tourists and business travellers, providing a different kind of investment opportunity.

We have found serviced accommodation to work in most places if set up, marketed and managed well. It’s a completely different model to traditional buy-to-let and HMO’s, but it will work well with Nottingham property as well as surrounding areas. The main difference is that guests are staying for a relatively short period of time, so first impressions are more important than ever. The quality and standard of accommodation is expected to be much higher and needs to be so if your properties are to remain competitive. One of the biggest challenges with serviced accommodation is cleaning and linen as most cleaning companies work on a scheduled rota basis and do not offer laundry as part of their service. With Serviced accommodation, you could need 3-4 cleans one week and then nothing for a couple of weeks, often with little notice as peoples plans change and bookings are amended.

What is a good property rental yield in the UK?

Basic rental yield is defined as the annual rental income, divided by the purchase price of the property and expressed as a percentage. The average UK rental yield in the UK as of 2023 is 4.75% and therefore a rental yield of 5-7% is considered to be good. 

Will you get a return on your investment property in Nottinghamshire?

Absolutely! With average gross rental yields of around 6-7% in the traditional buy-to-let market, you’re looking at a solid return on investment. The HMO market has significantly higher gross rental yields of 12%+, although they are more difficult to find, more complicated to set up and far more involved to manage. Also, with planning restrictions becoming more popular in HMO dense areas, finding this kind of property investment in Nottingham can be tricky. Regardless of your strategy, it’s a fairly safe bet than the value of your property is likely to appreciate over time, thanks to the area’s growth and development.

What rental yields can investors expect in Nottinghamshire?

In Nottinghamshire, you can expect rental yields of around 6-7% for traditional buy-to-let, depending on the area for property and property type. Areas closer to university and Nottingham city centre or educational institutions often offer the best yields, but with some due diligence on the area you choose to invest, you can achieve just as high yields, sometimes higher outside of the city centre and in areas where there is no student market.

What are the tenant demographics in Nottinghamshire?

Tenant Type	Pros	Cons
“White Collar” working Professionals	Stable income, long-term	High standards expected
“Blue Collar” working professionals	Easy going / less demanding	Jobs are more unstable
Overseas Working Professionals	Increasing demand	Susceptible to government visa changes
Students	High demand and rented in advance	If you miss the student cycle, voids are likely
Social Housing Tenants	Government-backed rent	Universal Credit makes direct payment difficult

 

Source

Nottingham is home to a very diverse tenant demographic, becoming even more diverse as you move out of the city centre. Whilst the University of Nottingham Students tend to want to live in Nottingham for the bars and restaurants, Nottingham Trent university has several campuses across the county, which creates a demand from students much further afield. 

Looking to build a premium property investment portfolio in Nottinghamshire and need a trusted partner?

If you’re an investor looking to make a mark in the Nottinghamshire property investment scene, we’re here to guide you through your investment journey. We’ve been through it ourselves and have helped many of our clients, so we’re perfectly placed to reduce the risks of you making costly mistakes. Whether you’ve shortlisted and need to select the best property, need assistance structuring the deal, or simply need an introduction to someone within our amazing network, we’ve got you covered. We offer a range of services designed to support you at every stage of your investment journey, all tried and tested by our current, long term clients. 

Conclusion: Reasons why Nottinghamshire is a good place to invest

Hopefully you’ve read enough to know that you won’t go far wrong choosing to invest in Nottingham and surrounding areas. The area offers a robust property market, diverse tenant demographics, and promising rental yields. Whether you’re a seasoned investor or just starting your investment journey, Nottinghamshire has plenty of opportunities to offer.

Frequently Asked Questions

Which property investment strategy works best in Nottinghamshire?

• There is no one strategy that works best because it’s all dependent on your goals, however strategies such as “flipping” properties after adding value through refurbishment tend to be more difficult the further north you get. The cost of the development labour and materials is largely the same as it is closer to London, but the end result is a property worth considerably less. Other than that, the strategies discussed above will all work really well when executed properly.

How do I start my investment journey in Nottinghamshire?

• Partner with a trusted investment company to guide you through the process. It’s easy for us to say this as we would love to be that trusted partner, however I cannot emphasise this enough. We have stepped in to rescue so many situations over the years where new investors have been ripped off by unscrupulous builders, sourcing agents and project managers. If I can offer you one major takeaway from this post, it’s to do just as much, if not more due diligence on the people you choose to work with than you do the property you are buying!

If I see a property on Rightmove, where can I find more detailed information about it?

• Quite often, Rightmove adverts will not give the full property address however with external property photos you can simply go to Google Street maps and work it out. Once you have the full address you could download the title document from land registry for £3 (ensure you use the correct website as there are many similar sites which look the same and they are charging in excess of £10 for the same information). This will tell you who owns the property and any charges against it, all very useful when you are planning to negotiate. You can also speak to your trusted partner as they may have a lot of useful information to help you (hint hint!)