Average Rent, House Prices and Buy-to-Let Yield in Derby (July 2026)
The average private rent in Derby is £857 a month (ONS, July 2026) and the average house price £204,016 (HM Land Registry, June 2026): a gross yield of 5.0%, ranked 77 of 316 local authorities.
Rent in Derby
The average private rent across all property types is £857 a month (+2.4% on a year earlier). The regional median in the East Midlands is £857.
| Property | Per month | Per year |
|---|---|---|
| 1 bedroom | £606 | £7,272 a year |
| 2 bedrooms | £775 | £9,300 a year |
| 3 bedrooms | £933 | £11,196 a year |
| 4+ bedrooms | £1,297 | £15,564 a year |
The bedroom ladder in Derby: one to two bedrooms adds 27.9% to the rent, two to three adds 20.4% and three to four-plus adds 39% (England-and-Wales medians 27.3%, 20.9% and 40.9%). The biggest step here is three to four or more bedrooms — the size where an extra room earns most, and the first place to look when comparing a conversion against its cost.
House prices in Derby
The average price paid is £204,016 (+2.3% on a year earlier).
| Type | Average price |
|---|---|
| Detached | £312,143 |
| Semi-detached | £207,113 |
| Terraced | £163,361 |
| Flat | £106,640 |
Rents and prices moved together in Derby — +2.4% and +2.3% over the year — so the gross yield on offer is roughly where it was twelve months ago. Derby ranks 235th of 316 local authorities for rent growth and 179th of 316 for price growth; the England-and-Wales medians are +3.8% and +2.8%.
Gross yield by property type in Derby
| Type | Rent / month | Average price | Gross yield | E&W median |
|---|---|---|---|---|
| Flat | £775 | £106,640 | 8.7% | 7.5% |
| Terraced house | £933 | £163,361 | 6.9% | 5.7% |
| Semi-detached | £933 | £207,113 | 5.4% | 4.6% |
| Detached | £1,297 | £312,143 | 5% | 4.1% |
On these pairings the strongest gross yield in Derby is on flats at 8.7%, against an England-and-Wales median of 7.5% for that type; the weakest is detached. Gross figures ignore service charges, which usually make flats the thinnest net yield of the four.
What that means for a landlord
- Gross yield 5.0% (rent × 12 ÷ price) — rank 77 of 316 local authorities; the regional median is 4.2%. Net yield is lower once mortgage interest, insurance, maintenance and voids come off.
- Tenant affordability: referencing at 30× means a household income of about £25,710 a year for the average rent.
- EPC before 2030: 47% of EPCs lodged in Derby over the last year were below band C — the level a rented home needs by 1 October 2030 — with 40% at D (EPC ratings in Derby).
- Council tax: Band D in Derby is £2,306 for 2026/27 (council tax in Derby).
Lender maths on the averages. At a 5.5% stress rate and 145% rent cover — the common buy-to-let convention — the average rent of £857 supports a loan of about £128,953, which is 63.2% of the average price. That falls short of 75% loan-to-value, so a buyer of an average home here needs a larger deposit or a stronger rent to pass the stress test. Both numbers are conventions rather than rules — change them in the stress test.
Run the numbers for Derby
- Yield calculator with £204,016 and £857 already filled in
- Mortgage stress test at 75% LTV on the average price
- Rent affordability: the income a tenant needs to reference at £857 a month
- Rental income tax on £10,284 a year of rent
Nearest neighbours by yield, in the East Midlands
| Area | Rent | Price | Yield | Rent 12m |
|---|---|---|---|---|
| Lincoln | £944 | £183,298 | 6.2% | +5.3% |
| Leicester | £1,024 | £228,618 | 5.4% | +2.3% |
| Boston | £803 | £180,778 | 5.3% | +1.1% |
| Ashfield | £793 | £190,024 | 5% | +5% |
| Mansfield | £788 | £192,359 | 4.9% | +4% |
| Oadby and Wigston | £1,025 | £259,734 | 4.7% | +4.1% |
All 316 areas ranked · council tax in Derby · EPC ratings in Derby.
Rents: ONS, Price Index of Private Rents (average monthly private rent by local authority, July 2026). Prices: HM Land Registry UK House Price Index (average price, June 2026). Gross yield = rent × 12 ÷ price, our calculation. Contains public sector information licensed under the Open Government Licence v3.0; contains HM Land Registry data © Crown copyright and database right 2026. Rankings and medians are ours, across 316 local authorities.
Asked about this area
£857 a month across all property types (ONS Price Index of Private Rents, July 2026), up 2.4% on a year earlier.
£204,016 (HM Land Registry UK House Price Index, June 2026).
About 5.0% gross on the averages — £857 rent against a £204,016 price — ranking 77 of 316 local authorities. Net yield depends on your mortgage and costs.
Flats on our pairing: 8.7% gross (£775 rent on a £106,640 price), against an England-and-Wales median of 7.5% for that type.
Rents +2.4% against prices +2.3% over the year — moving together, so yield is broadly stable.
Referencing at 30 times the monthly rent points to roughly £25,710 a year of household income for the average home; the affordability calculator shows 24× and 36× too.