The Best Buy-to-Let Yield Areas in Nottingham in 2025
Nottingham continues to stand out as one of the strongest cities in the UK for property investment, and 2025 shows no sign of that momentum slowing. The combination of rising rental demand, major employers, two thriving universities and excellent transport links has created an environment where both rental yields and capital growth consistently outperform national averages. For landlords and investors, Nottingham remains a city where both high-yield HMOs and reliable single lets deliver strong returns.
The highest buy-to-let yields in Nottingham are still found in the city centre areas of NG1. With a mix of students, graduates and young professionals wanting to live close to Nottingham Trent University and the business district, NG1 offers exceptional occupancy rates and strong pricing on small flats. This area also contains some of the best-performing micro HMOs and co-living setups in the city, pushing yields into double-digit territory and making it a top choice for investors seeking maximum return on investment.
Just outside the centre, NG7 continues to dominate Nottingham’s HMO market. Areas such as Lenton, Radford and Hyson Green attract huge demand from students at both universities and from working tenants looking for affordable, well-located accommodation. High-quality HMOs consistently achieve premium rents here, and voids remain minimal across the academic year. As a result, NG7 is one of the most profitable places in Nottingham for experienced HMO landlords.
For those focusing on single lets, Nottingham offers excellent stability and strong growth potential. Areas such as NG3, including Carlton and Mapperley, attract long-term tenants who value being close to the city centre while enjoying more residential surroundings. Demand remains steady throughout the year, with yields typically outpacing many other UK cities and capital growth forecasts remaining strong. Similarly, NG5 — covering Sherwood, Arnold and Woodthorpe — continues to be a favourite for families and professionals. Homes here rarely sit empty, and the balance of reliable rental income and long-term appreciation makes NG5 a leading choice for hands-off investors.
More value-driven investors continue to look towards NG6, including Bulwell, Basford and Bestwood, where lower purchase prices make it easier to secure strong rental yields. The area benefits from excellent transport connections, solid tenant demand and improving local amenities, making it well-suited for straightforward single-let strategies with attractive returns.
Nottingham’s strength as a residential investment city lies in its ability to support multiple successful strategies. HMOs in NG1 and NG7 provide some of the highest yields in the country, while single lets in NG3, NG5 and NG6 continue to deliver dependable income and impressive capital growth. With demand consistently outstripping supply, Nottingham remains one of the most compelling buy-to-let markets in the UK for 2025.