Short answer. We arrange development finance for Derby schemes from £200,000. The average published senior development rate in our lender data was around 7.5% a year in October 2026. Derby's average house price is £210,000, up 2.7% on a year earlier (ONS, August 2026, provisional).
Derby in numbers
- Price. ONS puts the average Derby home at £210,000 in August 2026. The East Midlands average is £242,000, about level with a year earlier. One provisional month on a small local sample moves around, so ONS advises looking at a year or longer.
- Rent. The average private rent in Derby was £871 a month in September 2026, up 4.7% on a year. The East Midlands average was £928.
- What that means for a developer. Values sit below the regional average, so the appraisal has to work on modest end values. A lender will want to see that your build cost and your sale or rental evidence fit the street, not the headline.
Sources: ONS, Housing prices in Derby and Private rents in Derby, August and September 2026 data.
Where Derby is building
City centre. Becketwell's first phase is complete, including the 259-flat Condor build-to-rent block. Castleward, a £100m scheme between Derbion and Derby Midland Station, plans more than 800 homes. The council also lists Friar Gate Goods Yard, an £80m scheme of 227 homes. These are large city-centre schemes.
The river. In September 2026 the council appointed Tibbalds to draw up a masterplan for Riverside North, a 6.7 hectare residential-led site between Holmes Bridge and Causey Bridge. The council says the Our City, Our River flood defences unlocked the land, and phase 2 of the flood defences is still under construction. Housing numbers and timing are not yet set.
Raynesway. Rolls-Royce plans to double its Raynesway site, with over 1,000 new roles and more in the supply chain, according to the council (28 November 2025). Jobs in one place can support demand for homes nearby.
HMO conversions. Since 3 May 2025, converting a home to a small HMO inside Derby's Article 4 area needs planning permission. The area covers all of Arboretum ward and parts of Abbey, Alvaston North, Darley, Mackworth, New Zealand, Normanton, Sinfin and Osmaston, within the ring road. Check the council's map before you buy.
What we arrange for Derby schemes
| Scheme | How finance can work | What matters most |
|---|---|---|
| Ground-up housing on a consented site | Senior development debt, drawn against the build | Planning in place, cost plan, contractor, exit |
| Conversion of offices or shops to flats | Senior debt, or a bridge to buy then development finance for the works | Planning route, structure, end values |
| Build-to-rent block in the centre | Senior debt, with mezzanine or forward funding considered case by case | Operator or letting plan, rent evidence |
| Student or co-living scheme | Senior debt, or forward funding, considered case by case | Operator, demand, price |
| Land near the river | Land purchase finance, then build finance once planning is clear | Planning status, flood position, timetable |
We will say which of these fits yours.
Before you approach a lender
- Planning: consent in hand, or a clear route and date.
- Cost: a quantity surveyor's cost plan and a named contractor.
- Exit: sale prices or rents backed by local evidence.
- Site: flood risk for land near the Derwent, and the Article 4 map for anything HMO-related.
- Your track record: what you have built, and with whom.
Derby development finance questions
What development finance is available in Derby?
Senior development debt for housing, conversions and build-to-rent. Mezzanine and forward funding are considered case by case. Our range starts at £200,000.
Does the Article 4 direction affect development finance?
It affects planning, not the loan type. A scheme that converts a home to a small HMO inside the area needs permission first, and a lender will want to see it.
Can you fund a site near Riverside North?
On a case-by-case basis. Riverside North is only at masterplan stage, so sites near it depend on their own planning and flood position.
How do I start?
Tell us the site, the planning position, the build cost and how you will repay. It is a confidential, no-obligation chat. See also development finance, mezzanine finance and forward funding.
Across the region
Tell us about your Derby scheme
We arrange unregulated business and investment loans, for business or investment purposes only - never secured on a home you or your family live in. A loan on such a home is regulated lending and belongs with an FCA-authorised mortgage adviser. Funding Developers Limited is not authorised or regulated by the Financial Conduct Authority.