Report shows Derby city centre rents double in three years

Private rents in the UK have surged by 25% since the onset of the Covid pandemic, as reported by Savills.

In Derby city centre, however, the rental costs have nearly doubled.

The monthly rent for a two-bedroom home at the largest development in the city, Wavensmere Homes’ Nightingale Quarter, has increased from £675 in 2020 to the current £1,100.

Travis Comery, senior lettings manager for Ashley Adams’ Derby branch, said: “There is so much demand for city living in Derby. Rolls Royce, Toyota and the NHS are the three biggest employers we are working with to ensure new staff who relocate here quickly find a suitable home. We work closely with relocation agents to support people who move here from across the UK and overseas.

“The chronic shortage of quality homes to rent, coupled with the issues encountered to get onto the property ladder, has resulted in soaring rents of late. Each new instruction is matched with tenants within a week. Typically these are young professionals aged in their mid to late 20s. Once the first six months are up on their contract, they could move elsewhere, but they are choosing to stay put, due to the convenient location, ample open space, sense of community, and lack of quality alternatives.

“From a long-term perspective, this development will always be a popular choice, because you can easily walk anywhere within the city centre. The regular 87-minute service to St Pancras from Derby train station – which is only a few minutes walk away – is another major benefit.”

Donna Smith, sales director for Wavensmere Homes, said: “Derby has become a top favourite location with graduates because of the quality of life you can enjoy here. High salaries and enviable career prospects with global companies are coupled with independent street markets, cultural destinations, and a thriving night-time economy. Nightingale Quarter is attracting first-time buyers because of the affordability of the low-maintenance apartments and spacious, landscaped setting. Meanwhile, investors are lured by the huge pool of tenants, central location, and 7% yields.

“Derby has – and is set to continue to – outperform other UK cities. The investment and growth the city as a whole is experiencing is attracting national attention, which is reflected in the enquiries and level of reservations in our final phases at Nightingale Quarter.”