Written by Lewis Ridley
Updated over a week ago
If you’re looking to invest your money into an area like Nottingham, it can be helpful to know the best areas for buy-to-lets. This will help you make sure you’re profiting as much as you can.
These are the top locations in Nottingham for buy-to-lets:
1. NG1 - City Centre
2. NG7 - Lenton
3. NG3 - St Ann’s
4. NG5 - Sherwood, Arnold, Woodthorpe
5. NG4 - Gedling & Netherfield
6. NG6 - Bulwell
7. NG9 - Beeston & Stapleford
8. NG10 - Long Eaton, Sawley, Sandiacre
9. NG8 - Aspley, Wollaton, Whitemoor
10. NG2 - City centre, Colwick Park and Sneinton
This article will run through the areas one-by-one and go into more detail about what makes them great places for property investing.
Nottingham city centre has one of the highest rental yields in the country. Only being beaten by some of the smaller Northern towns like Middlesborough. With access to plenty of transport links, restaurants, shops, and amenities, you can begin to see why this is a great area for buy-to-let investors.
At the time of writing this, the rental yield for NG1 is 9%, which is exceptionally high when compared to the UK average. As for house prices, the average in this area is around £258,000. This is a little lower than the Nottingham average of £264,000.
Growth has been incredibly good in this area as well with an increase of 30% over a 5-year period. So, if you’re hunting for capital appreciation, NG1 has what you need.
Lenton is a great place if you’re looking to invest in buy-to-lets in Nottingham. The area is just a short ride from the centre and has plenty of shops and amenities nearby. The yield here is particularly good as well.
In NG7, you can expect to achieve a rental yield of around 8%. This is, again, very high when compared to the rest of the country. Average house prices here are still below the average, sitting at £247,000, and capital growth is going strong with the area achieving around 17% in average growth over the last 3 years.
Because of all of this, NG7 is an area you should keep an eye on if you’re looking to invest in Nottingham.
Another good buy-to-let area in Nottingham is St Ann’s or NG3, this area is North-East of Nottingham’s city centre and has great yields and opportunities for eager investors.
NG3 has a rental yield of around 6%. So, this is not as good as the other areas but it’s still very high. Average house price in NG3 sits around £287,000, which puts it on the higher end when compared with the average.
Growth is going well here at the moment as well – the area has experienced 18.2% growth over the past 3 years. So, capital appreciation is looking strong.
NG5 includes areas like Sherwood, Arnold, and Woodthorpe, and makes it on to this list because it’s strong yields and below average house prices. This area is directly north of Nottingham but still has good links to the main city.
The yield in this area is around 6%, with some property types achieving 7% which is good to see. The average house price here is £240,000. So, it’s significantly lower than the city’s average. Additionally, growth has been decent with a 17% increase over the last 3 years. Not as good as other areas, but it’s still noteworthy.
NG4 includes areas like Gedling and Netherfield and is situated in the North-East corner of the city. It is a little out the way than other locations on this list but still poses as a good spot for buy-to-let investors in Nottingham.
Like many locations in Nottingham, this has a strong yield of around 6% and can bring in a solid cashflow for buy-to-let investors every month. With house prices in this area sitting around the £254,000 mark, they’re still below the average for the entire area.
Additionally, this area has seen fantastic growth over a 3-year period, achieving 21%! So, not only has it good strong cashflow potential, it also can earn you money in capital appreciation.
NG6 is an area North-West of Nottingham and like NG4 it’s quite far away from the centre. This location holds towns like Bulwell and offers good yields and surprisingly cheap properties.
You can expect to achieve a 5% yield here. A little lower than the above options but still good, nonetheless. This can be attributed to the lower-than-average prices here. You can get a property for an average of £200,000. So, if you’re a beginner investor looking for their first property, this could be a low-barrier-to-entry location for you.
Growth has been good here as well with the area achieving a 20% increase over a 3-year period. Not bad at all.
NG9 includes areas like Beeston and Stapleford and is a fantastic location for buy-to-let investors in Nottingham. The location has a strong reputation for families and young professionals, which is great for landlords looking for easy-going tenants. It is also well connected to the city centre, making commuting easier for workers.
The area has an average yield of 5% with some 1-bed property achieving 6%. The area is just South-West of Nottingham, so house prices are a little more expensive. Average prices sit around £341,000, which is substantially higher than the city’s average.
Growth in this area has been great despite the already high prices – over a 3-year period prices have increase by 18%.
B3 includes the Jewellery Quarter, and it sits just northeast edge of Birmingham’s ring road. of the city centre. This location is popular with young professionals and has undergone a lot of works over the last few years. Thus, making it a good place for BTL investors.
Average prices here slightly higher due to the premium properties. Currently, you can expect to pay in the region of £274,000 for a property in this postcode.
Because of the young professional population, however, yields are still great. You can achieve upwards of 5-6%. Growth is also on the rise, increasing by 3.3% over the last 3 years.
NG10 contains towns like Long Eaton, Sawley, and Sandiacre, and is situated very South-West of the main city. The commute is a little longer here but there is better access to Derby, so you could have two pools to pull tenants from in this area.
The rental yield is around 5% here with some property types getting 6-7%. House prices are a tiny but more than average, sitting at £265,000. However, with transport links to two cities, the quality of tenants will likely be better.
Growth has also been good here with 20% average growth over the last 3 years. So, not only can this area bring in good cashflow, it also can provide money in the form of capital appreciation.
NG8 is an area that includes Aspley, Wallaton, and Whitemoor, and is a decent area if you’re looking to buy a buy-to-let in Nottingham. The good yields make this an attractive place if you’re after steady cashflow. The prices are a little more expensive, however.
In terms of rental yield, you’ll be looking at figures in the 5% range. As mentioned, house prices are high. Currently, they’re averaging £294,000, which is more than the city’s average.
Growth is still good like the rest of city with a percentage increase of 17% over the last 3 years. However, there are still better areas like the ones mentioned above.
NG2 is the last location worthy of mention in this article. NG2 is right next to the city centre and has fantastic transport links to city. Although yields are good, property prices are very high in this area, so beginner or novice investors might want to stay clear.
The yields here are in the 5% range. However, some property types do go as low as 4%, which is getting closer to the UK average of 3%. This is because the prices are way above the average. Currently, they’re £357,000 which is very high when compared to the rest of the city.
Nonetheless, this is a good area to consider if you have the cash and can bring in good cashflow for investors who know what they’re doing.
Nottingham is a great city if you’re hunting for rental yield and solid year-on-year growth. The prices are well below the UK average and there’s plenty of areas to choose from (as listed above).
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