Property Development Finance
Derby

Housing need and delivery in Derby

Derby City Council is the planning authority. The Derby City Local Plan Part 1: Core Strategy was adopted on 25 January 2017 for 2011 to 2028 with a requirement of 11,000 homes, with South Derbyshire and Amber Valley taking part of the city's unmet need. A new Local Plan for Derby 2023 to 2043 reached its Regulation 19 stage in July 2026 and aims for a minimum of 12,500 new homes.

Derby's five-year housing supply statement at 1 July 2026 uses the standard method figure of 960 homes a year, in place of the adopted plan's 647, and reports a supply of 2.39 years. The statement records a Housing Delivery Test result of 83%, published in December 2024, and notes the government has not published an update since.

Sales values for a Derby appraisal

The index is only a starting point for GDV, but it frames the numbers. Derby's averages for July 2026: £107,000 for a flat, £167,000 terraced, £210,000 semi-detached, £317,000 detached; semi-detached prices rose 3.4% while flats were around the same.

A block of eight flats at the flat average works out at roughly £856,000 of GDV, and four detached houses at roughly £1.27 million. A valuer will want new-build comparables, which often differ from these second-hand figures, before the lender fixes the facility.

For a build-to-rent or hold strategy, the rental figures matter more. In August 2026 a Derby flat let for £709 a month and a semi-detached house for £913, with rents up 3.1% on the year; six semis let at that level would bring in roughly £65,736 a year gross.

Test your own figures with the residual land value calculator and the LTGDV and ROCE calculator.

England: tax, funding and building rules

On a Derby site, budget for Stamp Duty Land Tax on the land, plus the Community Infrastructure Levy and section 106 obligations that Derby City Council attaches to the permission. Homes England, the government's housing agency, is on our panel and lends to smaller housebuilders on schemes of five or more homes in England; see our Homes England review.

Development lenders for Derby schemes

For Derby, our panel has 49 lenders that offer development finance. Each is named below, with a link to our review where we have one. Coverage comes from each lender's own criteria, and we confirm it for the exact address before we approach anyone.

Expect part of the land cost on day one, build costs released in arrears against monitoring surveyor reports, and rolled-up interest; if sales run late, a development exit loan can take out the build lender.

Development finance in Derby: questions