5 reasons to invest in property in Nottingham
Nottingham has continued to gain more and more attention as a property investment hotspot. With its appealing location in the East Midlands, so much of the UK is within easy reach, making it an attractive city to live, work and invest in.
In recent years, businesses have been relocating and opening their doors in the city, and the population is on the rise. Because of this, the property market has been booming in Nottingham.
This is expected to accelerate due to the COVID-19 pandemic as the trend of working from home continues to grow. Nottingham is home to a lower cost of living, strong transport connections and extensive regeneration, which will attract more people to the city.
Are you thinking of investing in Nottingham? Here are some of the top reasons why you should invest in property in Nottingham.
Affordable property prices
When purchasing property investments, the price of property is an important factor. Nottingham is home to affordable house prices with the average property price sitting at £168,200 according to Zoopla’s January 2021 UK House Price Index.
While properties are still affordable in the city, house prices are on the rise. Nottingham has seen prices increase by 5.4% year-on-year at the beginning of 2021. That was the fourth strongest annual rise seen out of the cities on Zoopla’s UK 20-city index. And with even more house price growth projected for the coming years, there is potential to earn strong capital growth.
Strong rental market
One of the most enticing reasons for investors and landlords to choose Nottingham is the strong rental market. Approximately 60,000 students at The University of Nottingham and Nottingham Trent University help drive demand for rental properties.
Additionally, with a growing population of young professionals, demand is continuing to increase in the private rented sector. With this strong demand, rental costs are increasing, providing lucrative rental yields for investors. Average yields in the NG1 postcodes are 6.6%, according to PropertyData.
Resilient business scene
Nottingham is home to a thriving business scene and a strong startup industry. Numerous large companies have chosen Nottingham for their headquarter locations, including Boots and Experian. And more businesses and startups are choosing to open their doors or expand in the city.
With its strategic location in the middle of England, strong transport links and affordable commercial space, Nottingham will continue to be a great location for businesses. And this could bring even more professionals to the city.
Substantial regeneration and investment
A strong amount of investment is coming to Nottingham. The Island Quarter is set for a £650m regeneration scheme, which is the city’s largest regeneration scheme in decades. And Nottingham’s Southern Gateway is set for £250m worth of redevelopment and investment.
Further improving transport in the city is a strong focus for investment coming to the city. HS2 is expected to better connect Nottingham with other cities across the UK and slash rail journey times. This will in turn boost the city and improve its liveability.
Solid growth prospects
Nottingham has had one of the fastest growing economies in the UK. With strong regeneration and investment coming to the city, the economy is expected to grow even further. Being a top green city, Nottingham also aims to lead the UK as the first carbon-neutral city by 2028.
With the future looking strong for this leading city and region, property prices are expected to rise even further. In the East Midlands, prices are forecast to rise by an average of 18.4% between 2020 and 2025, according to Savills. Because of this, now is a great time to invest in property in Nottingham, so investors can take advantage of the potential capital gains.