The Ultimate Property Investment Guide To Nottingham, by My Build Pro, is a quick summary of the Nottingham property market for investors and landlords. In this guide, you'll discover the following:
Nottingham is a thriving city of opportunity, tradition, and innovation, making it a fantastic prospect for property investors and developers. This guide navigates through the opportunities offered by the Nottingham property market, offering insights into residential and commercial investment opportunities, the benefits of the buy-to-let market, the potential within Houses in Multiple Occupation (HMO), and the evolving landscape of commercial to residential conversions.
Nottingham has a unique blend of rich history, vibrant culture, and economic vitality. So what makes it a good place to invest? Let’s look at the city's demographics, transport infrastructure, educational institutions, major employers, and the overall economy.
Nottingham is set on the banks of the River Trent in the county of Nottinghamshire, just south of Sherwood Forest. It consists of Nottingham City and several surrounding suburbs and towns, including Beeston, West Bridgford, Long Eaton, Arnold, Hucknall, Sandiacre, and Mapperley. Most of the city is under the jurisdiction of Nottingham City Council, but other parts of the city are in the boroughs of Broxtowe, Gedling, Rushcliffe, and Erewash.
Nottingham is a youthful city, home to a growing population of more than 800,000, with a significant proportion under the age of 30 (according to the ONS).
The city's diversity is further enriched by its vibrant multicultural communities, making it a dynamic and inclusive place to live and work.
Nottingham is well connected, with a strong public transport system, including trams, buses, and trains. The tram network extends to key areas within the city, including the universities and the Queen’s Medical Centre.
Nottingham railway station offers direct rail services to major cities such as London, Manchester, and Birmingham, making it an attractive location for commuters.
East Midlands Airport is just 15 miles outside the city too, providing flights to a number of both international and domestic destinations.
The presence of the University of Nottingham and Nottingham Trent University, both renowned for their research excellence and academic offerings, attracts over 60,000 students annually. These institutions not only contribute to the city's youthful demographic but also play a pivotal role in driving innovation and economic growth.
Nottingham's economy is robust and diversified, with key sectors including finance, digital media, life sciences, and retail. With a history associated with the lace industry, Nottingham has been the birthplace of many famous companies including Raleigh, and Paul Smith and today there are several major employers in the area such as Boots, Experian, Siemens, Vision Express, and E.On.
As well as the two Universities, Nottingham has two large NHS hospitals - City Hospital and Queens Medical Centre, which are also major employers.
The city has a growing reputation as one of the UK's fastest-growing tech hubs and has the UK’s largest biosciences innovation centre, Biocity. It is also home to Games Workshop, the creators of Warhammer.
Nottingham has witnessed significant house price growth over the years, outpacing many other UK cities. This trend is driven by the city's economic expansion, population growth, and limited housing supply, presenting excellent capital growth opportunities for investors.
Compared to other major UK cities, Nottingham's property market remains relatively affordable, providing an accessible entry point for investors. The city's ongoing regeneration efforts and infrastructure developments are likely to enhance property values, offering promising prospects for long-term investment. At the same time, the blend of affordable property prices and strong rental demand results in competitive yields for buy-to-let investors.
Nottingham represents a compelling investment proposition, distinguished by its dynamic economy, robust educational institutions, and strong property market fundamentals. For property investors and landlords seeking to capitalise on high yields, capital growth potential, and a vibrant rental market, Nottingham emerges as a strategic choice.
Location is key in property investing, although before we look at the pros and cons of certain areas of the city, it’s worth noting that you can find great deals anywhere, and you can also find terrible deals anywhere. It’s also worth noting that different investors have different goals and strategies, so no location will be right for everyone. Having said all of that, where are the investment hotspots in Nottingham? Here we give a rundown of some of the main areas to consider:
Renowned for its strong community spirit, excellent local amenities, and proximity to the University of Nottingham, Beeston is a magnet for both students and professionals. The area boasts a vibrant high street, plentiful green spaces, and a diverse housing stock, making it a perennially popular choice. With strong rental demand and steady property value appreciation, Beeston stands out as a prime investment location.
NB adjacent to Beeston is the area of Lenton, an area best known for student accommodation. Lenton has high demand from students given its proximity to the University, however it is in an area covered by Article 4, meaning it is no longer possible to create new HMOs without consent from the council.
Just a stone’s throw from the city centre, West Bridgford is a highly sought-after area known for its leafy avenues, impressive Victorian and Edwardian properties, and high-quality lifestyle. The area’s schools are among the best in the city, attracting families and contributing to a stable rental market. West Bridgford’s property prices reflect its desirability, yet the potential for capital growth and strong rental yields make it an attractive proposition.
Nottingham city centre is a bustling, vibrant city centre, which is benefitting from several regeneration programmes including a significant development of the Broadmarsh area. With great transport connections, and the nearby Nottingham Trent University Campus, the city centre is an attractive destination for both young professionals and students.
Offering a mix of affordability and quality of life, Mapperley is popular among young professionals and families. The area benefits from its own high street, good schools, and excellent transport links to the city centre. The diversity of properties, from charming period homes to modern apartments, provides a broad spectrum of investment opportunities.
Characterised by its vibrant high street, community events, and an eclectic mix of independent shops, Sherwood is another area that appeals to a broad demographic. The housing is varied, offering something for every taste and budget, from spacious detached homes to affordable terraces. Its popularity among renters and first-time buyers alike signals a robust investment opportunity.
Clifton is a large suburb south of the River Trent which has very mixed housing stock, from the quiet riverside suburban area of Clifton Village, to council estates and one large high-rise. It is an affordable area of the city, with good transport links into the centre via the Tram and bus networks. It is also home to Nottingham Trent’s Clifton Campus.
Just a short walk from Nottingham city centre, Sneinton is an up-and-coming area known for its vibrant market and cultural diversity. The area is undergoing various regeneration projects which are enhancing its appeal and infrastructure. Sneinton offers a variety of property types, from traditional terraced houses to new builds, attracting a mix of young professionals and families.
While Radford is close to the city centre and offers affordable property options, it has faced challenges, including higher crime rates and social issues. Investors might find opportunities here, but it is essential to conduct thorough due diligence and consider long-term strategies for property management and tenant selection.
Situated between Nottingham and Derby, Long Eaton serves as a strategic location for commuters working in either city. The area is known for its large Victorian and Edwardian properties and has seen significant developments in local infrastructure. Long Eaton's offers affordability, and excellent transport links - it is close to East Midlands Airport, and Nottingham Train Station offers direct trains to the city as well as London, Birmingham, Derby and Leicester.
Located to the north of Nottingham, Arnold boasts a friendly community atmosphere with a blend of suburban comfort and local amenities, including a variety of shops and parks. The area offers a mix of housing styles, appealing to both first-time buyers and families looking for a peaceful environment. Arnold's access to good schools and its proximity to Nottingham city centre makes it a practical choice for property investment.
Overall, Nottingham’s diverse property market offers a wealth of opportunities for investors willing to delve into the specifics of each area. By focusing on locations with strong growth potential and being mindful of areas that may require more oversight, investors can strategically position their portfolios for success. The key lies in thorough research, understanding local market dynamics, and sometimes, a readiness to see beyond current perceptions to the potential that lies ahead.
Nottingham presents a fantastic opportunity for buy-to-let investors around the UK and overseas. Whether targeting young professionals, the significant student population, or exploring hands-off investment options, Nottingham offers a diverse landscape to suit different investment strategies.
Nottingham, like many major cities, is ripe with opportunities at property auctions. Auctions in Nottingham often feature a wide range of properties, from residential homes in need of renovation to ready-to-let apartments in the city centre. Auctions are regularly held at Nottingham Racecourse in Colwick, and well-known auctioneers in the area include SDL, Auction Estates and John Pye. Many estate agents also offer properties for sale via online auction, for example EweMove.
Nottingham stands out in the buy-to-let market due to its attractive yields. The combination of comparatively low average house prices and high employment rates makes the city an appealing option for investors. With a diverse demographic, including young professionals and a large student population, the rental demand in Nottingham is strong and consistent.
This diversity offers investors a broad spectrum of investment strategies:
Ideal for investors seeking a hands-off approach, the city centre is home to numerous apartment blocks and purpose-built student accommodations, offering high rental demand and convenience. There are many new developments, providing opportunities for off-plan purchases.
For those looking for higher rental yields, investing in HMOs can be a lucrative strategy. Nottingham's student and professional sharers market provides a steady demand for shared housing, although this comes with additional management considerations and regulatory compliance.
Nottingham City Council has implemented a selective licensing system for landlords, aimed at improving the standard of privately rented housing. Under this scheme, landlords must obtain a licence for each property they rent out, demonstrating compliance with safety and management standards. It is important to check whether any investment you are considering is covered by this system - and if so, you will need to factor in the additional annual licence costs as well as the compliance requirements.
Investing in Houses in Multiple Occupation (HMO) in Nottingham is a widely used property strategy - the combination of high numbers of student and young professionals in certain parts of the city and surrounding suburbs creates high demand. However, navigating the regulatory landscape is critical to ensure compliance and maximise investment potential.
All HMO regulations ultimately fall under the umbrella of The Management of Houses in Multiple Occupation (England) Regulations 2006, and The Housing Act (2004) but individual HMO licenses are granted by the borough councils. Within Nottingham there are 5 main borough councils, each with their own approach to HMO licensing, for example minimum room size requirements, etc.
They are as follows:
Article 4 Directions are a planning regulation tool used by local authorities to require planning permission for changes of use that would otherwise be permitted by default. In the context of Nottingham, Article 4 Directions have been employed to control the spread of HMOs by requiring planning permission to convert single-family homes into HMOs within designated areas. As of the time of writing, here is the current map of the part of Nottingham covered by Article 4:
The areas covered by Article 4 typically include parts of the city where there is a high demand for student and shared housing, such as close to universities and city centres. If you are considering an HMO conversion project in this area, you must seek planning permission first (and obtaining it is not guaranteed).
Nottingham offers significant opportunities for commercial property development, especially in converting commercial spaces to residential use.
The shift towards remote working and the evolving retail landscape has led to a reevaluation of commercial property use in most urban areas, including Nottingham. This transition opens up opportunities for the conversion of underutilised commercial spaces, such as retail units, offices, and warehouses, into residential properties. Such developments can rejuvenate city areas, meet housing demand, and offer attractive investment returns.
In a 2024 amendment to the General Permitted Development Order, the UK government introduced measures to facilitate the conversion of commercial properties to residential use through permitted development rights (PDRs). These rights allow certain types of commercial properties (Class E) to be converted into residential units (Class C) without the need for full planning permission, streamlining the development process.
This creates several property development opportunities:
While planning permission is no longer required for all of these conversion projects, all conversion projects must comply with current building regulations, ensuring that the converted properties meet standards for safety, energy efficiency, and habitability. This includes considerations for fire safety, sound insulation, and accessibility, which can significantly impact the design and cost of conversion projects.
Successful conversion projects often hinge on selecting properties in desirable locations with strong demand for residential housing. Investors should conduct thorough market research to identify areas within Nottingham that offer the best potential for residential conversions, considering factors such as proximity to amenities, transport links, and local housing market dynamics.
By understanding the regulatory environment, keeping abreast of market trends, and strategically planning their projects, investors can tap into the potential of these developments to meet housing needs, revitalise city areas, and achieve significant investment returns. As Nottingham continues to grow and adapt, the flexibility to repurpose commercial properties into residential spaces will play a pivotal role in shaping the city’s future.
Nottingham’s evolving property market presents a fertile ground for investors, offering a spectrum from residential buy-to-let properties and HMOs to commercial-to-residential conversions. By leveraging the city’s demographic diversity, economic growth, and the regeneration of key areas, investors can unlock significant potential. As Nottingham continues to adapt and grow, its property market offers a canvas for investment strategies that are as diverse as the city itself. This guide aims to equip investors with the knowledge and insights needed to navigate Nottingham's property landscape, maximising opportunities while mitigating risks, and contributing to the city's vibrant future.
Investing in properties can be highly profitable, but it's also fraught with potential pitfalls. If you want help finding a great property deal in Nottingham, then My Build Pro offers a solution.
The My Build Pro team provides a complete turnkey investment solution - from deal sourcing, to design, refurbishment, and property management.
In summary, partnering with My Build Pro can help you achieve your property investment goals, and to make the most of Nottingham’s property investment opportunities. Visit MyBuildPro.co.uk to learn more or call us on +44 (0) 115 8245125.