Derby City Centre Rent Cost Almost Doubled in Three Years, Reports 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, the cost of renting has nearly doubled. The monthly rent for a two-bedroom home at the city’s largest development – Wavensmere Homes’ Nightingale Quarter – has risen from £675 in 2020 to today’s £1,100.
Local letting agent Ashley Adams has matched tenants with 300 new Nightingale houses and apartments this year. The £175m 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: “There is so much demand for city living in Derby. Rolls Royce, Toyota and the NHS are the three biggest employers we are working with to ensure new staff who relocate here quickly find a suitable home. We work closely with relocation agents to support people who move here from across the UK and overseas.
“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.
“From a long-term perspective, this development will always be a popular choice, because you can easily walk to anywhere within the city centre. The regular 87-minute service to St Pancras from Derby train station – which is only a few minutes’ walk away – is another major benefit.”
One- and two-bedroom apartments at Nightingale Quarter are priced from £185,000. Since the scheme was launched to the market four years ago, 46% of buyers have come from Greater London and Essex.
Five phases of construction have been underway simultaneously at Nightingale Quarter during 2023 to keep up with demand. A total of 395 homes have been handed over to purchasers this year, including 165 apartments at newly completed Fox House, 105 apartments at Strutt House, 70 apartments at Darwin House, and the final tranche of the development’s 125 two- and three-bedroom houses.
Donna Smith, Sales Director for 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.”
Nightingale Quarter has brought about the restoration and redevelopment of the Derby Royal Infirmary, including the two iconic pepper pot buildings – built in 1894. Pepper Pot South will be transformed into a residents’ gym and community meeting room. The gym will be available to all those living in the apartments and houses, with the low running cost split across the service charge for the 925 homes.
Pepper Pot North will accommodate The Fulton Partnership’s £1m restaurant, opening in January 2024. Construction is also well underway for Dalton House, which will contain 67 one- and two-bedroom apartments. Situated at the front of the development, overlooking London Road, construction work on a final residential building is due to commence in May 2024.
Florence Nightingale lived in the city for three years and was instrumental in designing the hospital, which received the Royal Stamp of Approval when it was opened by Queen Victoria in 1894. An original statue of Queen Victoria has been preserved and restored by Wavensmere Homes to ensure her legacy stands strong.
Wavensmere Homes has submitted plans for the 11.5-acre (4.96Ha) historic Friar Gate Goods Yard elsewhere in central Derby, which could be transformed into 276 houses and apartments, and over 110,000sq ft of commercial space. The firm has also recently submitted planning for 186 apartments with Wilson Bowden Developments, for one of the final plots of development land within Derby’s newly revitalised Cathedral Quarter. Wavensmere Homes’ additional major urban regeneration schemes are located across central England. The Birmingham-headquartered housebuilder has around 3,500 new homes either under construction or in planning.
Nightingale Quarter’s marketing suite and two show homes are open from 10am – 5pm Monday through to Saturday, accessed off 128 London Road, Derby DE1 2QQ. For further information, or to book an in-person, or virtual appointment, call 01332 321 255, or email [email protected]