If you are thinking about buying a new property, selling or moving to a new home, the housing market performance will influence the best timing to do this. Local housing markets may not directly influence mortgage rates, but lenders use local market performance for risk pricing.
Understanding the current Derby property market trends and the predictions for the local market in 2026 and beyond will help you to decide whether to buy, sell or wait.
Current property market trends in Derby
The housing market in the East Midlands has been relatively stable for the last few years, with the average house price showing an increase of 2.3% from October 2024 to October 2025, with the average house price in Derby recorded at £205,000.
However, in other areas of the UK, particularly in the South East and Central London, the market has been more volatile.
House price predictions for Derby
The outlook for the Derby property market is looking positive with regeneration projects such as the Derby City Centre Masterplan 2030 helping to drive high property demand. Predictions from local firms predict that property prices in Derby will by around 6% between May 2025 and May 2026.
This is significantly higher than the predicted 2% increase for the UK market that many property experts have shared.
How mortgage affordability is affected by Derby’s market
Derby properties are more affordable than in many other areas; the average house price in England in the 12 months to October 2025 was £292,000, compared to £205,000 in Derby. Affordable properties combined with stable income from strong performing industries in the East Midlands means that mortgage applicants often pass affordability checks more easily in this area.
