If you’re a landlord in Nottingham in 2025, you’ll know that the landscape is shifting. Margins are tighter, regulations more complex, and tenants have higher expectations than ever. But change brings opportunity – and one of the smartest ways to strengthen your returns in this market is through diversification.
Whether you manage one property or a large portfolio, spreading your investments across different property types – from traditional Buy-to-Let (BTL) to HMOs and short-term lets – can help balance risk and unlock new streams of income.
So, what’s working well in Nottingham right now?
Buy-to-Let (BTL): Reliable and Resilient
Pros:
- Lower day-to-day management
- Predictable income
- Strong demand from families and professionals
Cons:
- Lower yields compared to more hands-on strategies
- Regulatory changes impacting tax efficiency
Nottingham Hotspots:
- Carlton (NG4) – Great for family lets, good amenities, and strong local demand
- Sherwood (NG5) – Popular with professionals and commuters
Verdict: Buy-to-Let remains a solid foundation for many portfolios. While capital growth opportunities are currently limited, well-located properties continue to offer dependable rental income. In today’s market, it’s more about steady yields than quick wins and that’s a good thing for landlords looking for long-term security.
HMOs: Time to Rethink the Approach
Pros:
- Potential for higher rental income when well-managed
- Strong demand from professional sharers
Cons:
- Higher compliance and management requirements
- Tighter regulations in key areas
Nottingham Hotspots:
- Basford & Mapperley (NG6/NG3) – Growing demand for well-presented professional house shares
- Lenton & Dunkirk (NG7) – Still active in the student market, but increasingly competitive
Verdict: While traditional student HMOs are facing increased competition and downward pressure on rents, the professional HMO model continues to perform well. Many landlords are now converting student HMOs to suit working tenants or blending their approach to create hybrid properties that offer flexibility and stability. With the right setup and management systems, HMOs can still be a valuable part of a modern portfolio.
Serviced Accommodation (SA): Location is Everything
Pros:
- Potential for higher nightly income
- Flexibility for different tenant types: contractors, NHS staff, academics, and relocators
Cons:
- Management-intensive
- Income can be seasonal and regulation is tightening in some areas
Nottingham Hotspots:
- The Park & City Centre (NG1/NG7) – Well-suited to business travellers and event visitors
- Near QMC Hospital or University of Nottingham – Regular demand from visiting professionals and staff
Verdict: When matched with the right location and guest profile, SA can deliver excellent returns. Success here depends on having the systems to manage operations efficiently, and realistic expectations around occupancy and running costs.
Should You Diversify?
Before making your next move, ask yourself:
- Is your portfolio over-reliant on one property type or tenant group?
- Are you looking for higher cash flow, or steady long-term returns?
- How involved do you want to be in the day-to-day management?
Final Thoughts
Today’s property market in Nottingham is rewarding landlords who take a strategic, flexible approach. While student HMOs may not offer the same returns as in previous years, there are still strong opportunities in the professional letting space, BTLs in the right areas, and well-positioned serviced accommodation.
By staying informed, adapting to current conditions, and focusing on yield, sustainability, and tenant demand, landlords can continue to build resilient and profitable portfolios – even in a more challenging climate.
Need help reviewing your strategy or exploring new opportunities? Our lettings team at Belvoir is here to help – no pressure, just practical advice tailored to your goals.
