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Rental yields›Derby

Rental yield in Derby

Derby sits in the upper half for rental yield in England and Wales, a bit above the 4.4% typical figure across all 316 areas.

Over the past year, average prices in Derby rose 2.3% and average rents rose 2.4%.

Gross yield

5%

Average price

£204,016

↑ +2.3% / yr

Average rent

£857/mo

↑ +2.4% / yr

National rank

#78 of 316

Who rents here

Census 2021, 105,651 households

21.3% of homes in Derby are private rentals.

Private rented 21.3%Social rented 18.8%Owner occupied 59%

Average rent by size

1 bedroom

£606/mo

↑ +2.6% / yr

2 bedrooms

£775/mo

↑ +2.6% / yr

3 bedrooms

£933/mo

↑ +2.7% / yr

4+ bedrooms

£1,297/mo

↑ +1.8% / yr

1 bed£606
2 beds£775
3 beds£933
4+ beds£1,297

Average advertised rent by number of bedrooms. ONS Price Index of Private Rents (2026-07).

Council tax bands (2026-27)

Band A

£1,537

Band B

£1,794

Band C

£2,050

Band D

£2,306

Band E

£2,818

Band F

£3,331

Band G

£3,843

Band H

£4,612

Average annual bill for the area, including police and other precepts (MHCLG and Welsh Government, 2026-27). Community precepts vary, and the band is set by the property, so check the exact band on gov.uk.

Work out the yield on a specific property

Pre-filled with the Derby average. Change them for a real property.

Gross yield5%

That is right on the Derby average of 5%. Add costs for a net estimate.

How it compares

Derby5%
Highest (Newcastle upon Tyne)6.9%
Typical (median)4.4%
Lowest (Derbyshire Dales)2.8%

Areas with a similar yield

Neath Port Talbot 5.1%Redcar and Cleveland 5%North East Lincolnshire 5%Thurrock 5%Medway 5%Milton Keynes 5%
See it on the yield mapWork out a specific dealCheck this area

Common questions

Is Derby a good place to buy to let?

It is around the middle for rental income, at a 5% average gross yield. Whether it works depends on the specific property, so always run the actual numbers.

Are rents rising in Derby?

Over the past year, average rents in Derby rose 2.4% and average prices rose 2.3% (HM Land Registry and ONS, to 2026-07).

Is there rental demand in Derby?

Rent movement is the best free proxy for tenant demand, and average rents in Derby rose 2.4% over the past year (ONS), which points to tenants competing for available stock. Still ask local letting agents about typical void periods before committing to a buy-to-let there. For the size of the market: at the 2021 census, 21.3% of Derby's 105,651 households rented privately (18.8% social rented, 59% owner occupied).

What is the average rent for a 1, 2 or 3 bedroom property in Derby?

As of 2026-07, average monthly rents in Derby by property size are £606 for a 1 bedroom property, £775 for a 2 bedroom property, £933 for a 3 bedroom property, £1,297 for a 4 or more bedroom property (ONS). The all-size average is £857 a month.

How much is council tax in Derby?

In 2026-27, the average Band D council tax in Derby is £2,306 a year including police and other precepts. Bills scale with the property's band: from £1,537 for Band A up to £4,612 for Band H. Community precepts vary within the area, so treat these as area averages and check the exact band and bill with the council.

What is a good rental yield in the UK?

As a rough guide, under 4% is low, 5 to 6% is typical, and above 6.5% is high. Derby is at 5%.

Weighing up Derby? Ask people who invest there in the free Housetrix Discord, or browse every area ranked by yield.

Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (01/06/2026). Average rent: ONS Price Index of Private Rents (2026-07). Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.

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