City outperforming others on rent increases

Derby is outperforming other UK cities when it comes to rising residential rental prices, according to Wavensmere Homes.

Average private rents across the UK have soared by a quarter since the start of the Covid pandemic, according to Savills.

However, in Derby city centre, Wavensmere has reported that the cost of renting has nearly doubled.

The monthly rent for a two-bedroom home at its new Nightingale Quarter scheme has risen from £675 in 2020 to today’s £1,100.

In 2023, letting agent Ashley Adams matched tenants with 300 new Nightingale Quarter houses and apartments.

The £175 million development will comprise a total of 925 homes once the 18.5-acre site completes in 2025.

Travis Comery, senior lettings manager for Ashley Adams’ Derby branch, said: “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 is 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.”

Since Nightingale Quarter was launched to the market four years ago, 46% of buyers have come from Greater London and Essex.

Last year, almost 400 homes were handed over to purchasers.

Donna Smith, sales director at 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.”