Nottingham is a major city with a rich history stretching back to the Anglo-Saxon period.
While it is well-known for its association with the legend of Robin Hood and his band of merry-men, the city is now a prime location for landlords looking to expand their buy-to-let property businesses. However, knowing where to buy without local knowledge can be challenging.
Fortunately, this page is here to help. Here we explore the postcodes with the best yields and price appreciation, according to data collected by our experts.
Why is Nottingham a good choice for a buy-to-let?
But first, why is Nottingham such a good location for buy-to-let investors? The answer comes down to several factors.
Primarily, the market in Nottingham is healthy. The city has more than 65,000 students, with many requiring accommodation year-round. (In fact, Nottingham has the second-highest proportion of students in the country, second only to Exeter). The city is also home to many young professionals and the surrounding county recently hit a record low for youth unemployment, expanding the pool of suitable tenants even further.
The second most important factor in Nottingham’s favour is its award-winning transport network. Many residents use the “Robin Hood” card, similar to London’s Oyster scheme, to get around. Rail services run nationwide from Nottingham Station, and the tram network stretches over 32 km, with each vehicle being the size of three double-decker buses. There are also comprehensive bus services for residents, plus accessible public transport options to assist mobility.
The Nottingham economy is also showing signs of sustained strength. The city’s renewal plan seeks to prioritise digital enterprise, entrepreneurship and innovation in the future while also offering skills training to enhance employment opportunities. Estimates put the size of the Nottingham economy at £12 billion, growing at one of the fastest rates of any major city in the UK.
How does Nottingham compare to Sheffield and Birmingham as a buy-to-let area?
If you’re looking at Nottingham, chances are you’re also considering nearby Sheffield and Birmingham too. But how do the three compare?
The property market in Nottingham sits somewhere between the two. For example, the average property price in the city was £246,327 over the last year. This figure compares to £229,245 in Sheffield and £259,821 in Birmingham.
Capital appreciation, or the growth in property values, is relatively similar between all three too. In the year up to March 2023, data from the UK House Price Index shows property prices in Nottingham have grown 11.4%, by 12% in Sheffield, and by 11.2% in Birmingham. In short, all three show excellent results for investors.
And according to data from Home.co.uk, landlords in Nottingham can expect an average rental income of £1,241 per calendar month. That compares to £1,079 in Sheffield and £1,516 in Birmingham.
Top 10 areas for buy-to-let in Nottingham by rental yield
So it’s clear that Nottingham offers buy-to-let landlords significant investment opportunities. But where are the best areas to invest?
Using industry data on postcode performance, we’ve identified the 10 best areas for a buy-to-let in Nottingham based on rental yield. Here are the results:
|Postcode||Avg asking price||Avg asking rent (pm)||Avg yield||5yr Price Change|
NG7 – Hyson Green, Radford, Lenton, and the University Of Nottingham
NG7 and NG1 offer the same average yield. However, NG7 tops our list because of the astonishing growth in house prices, up more than 40 per cent in the last five years.
NG7 sits immediately west of Nottingham centre, encompassing Hyson Green, part of Lenton, and the university. Mainly suburban, this area primarily attracts students and young professionals.
The high yields come from a combination of the historically low property prices in the area, and the building of several custom developments, designed to house students affordably. Other properties in the area are Victorian, built closer to the city centre.
NG7 is also a trendy area. For instance, Lenton is home to various bus routes between the University Park Campus and the town. There are also many pubs, including the Three Wheatsheaves and the Rose and Crown.
NG1 – Nottingham City Centre
The second-best place for landlords to purchase Nottingham buy-to-lets is the NG1 postcode, comprising the city centre. The Lace Market, Old Market Square, Nottingham Castle, various museums, the Arboretum, and the Forest Recreation Ground are all nearby. The area also encompasses Nottingham Railway Station and Broadmarsh Bus Station, with transport links locally and nationwide.
Yields are historically high here as young professionals want convenient accommodation and transport near the city centre. It is also popular among wealthier individuals without families looking for locations closer to the city’s nightlife.
Nottingham city centre is the target of multiple regeneration projects pushing up rentals further. These include Nottingham Science Park, the Waterside housing development, and the Guildhall Palace redevelopment.
NG9 – Beeston, Stapleford, Lenton Abbey, Chilwell, Trowell, Bramcote
NG9 is a quiet suburb to the southwest of Nottingham city centre, served by the A52, which runs west to Derby. The area is known for its many parks, cul-de-sac housing developments, and post-war builds. Many properties in the area are large and suitable for conversion into bedsits or HMOs.
Bramcote sits at the centre of NG9. It is a suburban village with four local schools, a sports and community college, and the Bramcote Leisure Centre. Yields are high because of the beauty of the area and the multiple bus routes running to Nottingham Centre, Derby, and nearby residential districts.
NG6 – Bestwood Village, Bulwell, Old Basford
According to our figures, NG6 offers the fourth-best opportunity for buy-to-let landlords in Nottingham. The area, northwest of the city centre, has its own railway station at Bulwell, and industrial parks, offering employment opportunities.
With that said, recreation is the area’s primary attraction and the main reason tenants pay a premium to live there. Nearby is the Bestwood Country Park, a large open estate to the north, and Bulwell Hall Golf Course, which sits within the city limits.
NG3 – Carlton, Sneinton, St Ann’s, Mapperley
NG3 is a varied urban-suburban area to the northeast and east of Nottingham city centre, offering compelling buy-to-let opportunities. The area mainly attracts families, though some single young professionals also live here. The Bakersfield area offers affordable semi-detached housing on gridiron roads, whereas properties in St. Ann’s follow a more modern cul-de-sac layout with primarily detached properties.
Close by is the Mapperley Golf Club, bringing wealthy members to the area. There is also the modest Gedling Country Park, popular among families.
NG8 – Aspley, Wollaton, Whitemoor, Bilborough, Strelley
Coming in at number six on our list of best locations for buy-to-let investors is NG8, encompassing Aspley, Wollaton, Whitemoor, Bilborough and Strelley.
This suburban area sits directly west of central Nottingham, offering long sweeping drives, high-quality accommodation, and plenty of parkland and nature.
The area is popular because it offers residents a quiet life and access to local amenities, including the Wollaton Hall Gardens and Deer Park.
NG20 – Shirebrook, Market Warsop
NG20 is a rural region of Nottinghamshire to the far north of Nottingham and close to Sheffield. The A60 is the main route serving the area, with additional access to the north-south M1.
The area is popular for its bucolic scenery and idyllic lifestyle. Most traditional properties congregate in the villages of Shirebrook, Warsop and Church Warsop. Most sores, shops and amenities are local.
NG5 – Sherwood, Arnold, Woodthorpe, Bestwood, Carrington, Top Valley, Rise Park
NG5 sits directly north of Nottingham city centre. The area offers tenants close access to the hospital, plus many supermarkets, greens, and parks.
Residential areas comprise pretty cul-de-sacs, primarily built in the 1980s and 1990s. Those closer to the centre of town are post-war.
NG19 – Mansfield Woodhouse, Forest Town
NG19 is an area adjoining the neighbouring city of Mansfield, a popular destination for tenants, thanks to its low house prices and excellent facilities.
Mansfield Woodhouse is a large housing development with well-marked cycle lanes and its own railway station, connecting to Mansfield, Nottingham, and beyond. NG19 also encompasses the northwestern flank of Mansfield, offering access to superstores, the King’s Mill Hospital, and Radford & Hymas Academy. The area is popular among junior doctors, students, and young professionals looking for inexpensive accommodation.
NG2 – Colwick Park, Sneinton, The Meadows, West Bridgford
Rounding out our list of best buy-to-let areas in Nottingham is NG2, one of the most prestigious locations to the south of the city centre. Average prices are higher here because of the location close to the centre and large property sizes.
Just north of the River Trent is The Meadows area, a small grid-iron of Victorian and historic properties close to the city. Further out along Merton Road, you’ll find modern developments, including more recent cul-de-sacs near the A52 and Clifton Boulevard.
Renters like this area for its traditional suburban living environment. It also offers access to numerous schools, parks, and riverside.
In conclusion, Nottingham is an up-and-coming buy-to-let location, offering numerous opportunities for landlords. The best opportunities are NG7 to the west of the city and NG1 in the central business district. These locations comprise the university and the city’s main attractions, providing residents easy access to local amenities, shops, restaurants, transportation, and nightlife.
About this data
The data in this article is an accurate representation of the Nottingham property market as of March 2023. We’ll update this report next year, in 2024, with fresh data.