Leicester Property Investment | Our Essential Guide

Last updated: June 2022

Are you considering a property investment in Leicester?

In this article, local property price and rental yield data are presented to help you decide.

 

Leicester is a city in the East Midlands and is situated in the center of England.

Thanks to Leicester's central location, it's an excellent choice for commuters. Trains to Sheffield, Nottingham, and Birmingham run regularly. The train to London only takes one hour which makes commuting to London an option.

When travelling by car Leicester's connection to the M1 makes journeys around the UK easy. The M1 south heads to London or north to Sheffield and Leeds, further connections from the M1 to the M40 or M6 mean journeys around the UK are straightforward.

Population Trends

Major Employers

The Sytner Group Ltd is one of the UK's leading car dealerships and its headquarters are in Leicester. With dealerships all around the UK specialising in cars like Porsche and Audi, the company is a major employer in Leicester and the wider UK.

Retail giant, Next has its head office located in Leicester. Nationwide the company employs over 40,000 people and there are lots of opportunities within the organisation.

British food manufacturer Samworth Brothers are another major employer in Leicester. Brands such as Ginsters and Melton Mowbray pork pies are produced by the food giant.

Another well-known retail brand, Dunelm Group, has a factory based in Leicester. Curtains, blinds, and accessories are made here.

Local Colleges and Universities

Living in Leicester gives you access to three outstanding universities. All located near busy shops and bars.

The University of Leicester first opened in 1921. A couple of things the university is famed for include inventing genetic fingerprinting and finding the remains of King Richard III. On the doorstep, students can enjoy live entertainment, shops, bars, and restaurants.

De Montfort University sits beside medieval buildings including Leicester Castle. The university has a multi-million-pound sports centre.

A 10-minute train journey from Leicester city centre brings you to Loughborough University. The university offers elite sports programs, and high-quality engineering and technology facilities.

These three universities have a total student population of more than 65,000 - this makes Leicester one of the premier UK destinations for anyone seeking a student-friendly city.

History of Leicester

Leicester started out as a Celtic settlement until the Romans invaded in 43AD. In 48AD the Romans built a fort at Leicester. Roman Leicester thrived until the 4th century when it saw a decline as the Roman empire also declined. The Romans left Britain in 407AD and like many other cities, Leicester fell into ruin.

By the 9th century, Leicester was starting to thrive again. Over the following centuries, it was controlled by the Danes, English, and the Normans. In medieval Leicester, the main industry was wool and leather.

In the late 18th century, the industrial revolution transformed Leicester. Engineering, shoemaking, and elastic were some of the key industries found in Leicester. Once the railway was connected the city enjoyed unprecedented growth.

Leicester is still a thriving city today with a diverse population.

Property Prices In Leicester

Investing today with a view to the projected resale value of your property is vital for achieving capital appreciation. Reviewing accurate, historic price information can help inform your growth projections.

Flat prices in Leicester

The average flat price in Leicester was £141,734 in 2021.

Price growth averaged 53.88% for flats in Leicester for the period 2011-2021.

Charts of Flat Prices In Leicester

Flat prices in Leicester

Flat prices in Leicester source: UK House Price Index
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Average Price 108,536 104,184 90,717 92,105 91,512 91,287 93,013 97,023 101,847 110,100 119,343 125,817 127,854 132,880 141,734

Terraced house prices in Leicester

The average terraced house price in Leicester was £181,737 in 2021.

Price growth averaged 69.40% for terraced houses in Leicester for the period 2011-2021.

Graph of Terraced House Prices In Leicester

Terraced house prices in Leicester

Terraced House prices in Leicester source: UK House Price Index
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Average Price 118,786 114,950 101,225 107,281 106,071 107,124 110,158 115,378 121,009 131,032 138,766 149,478 154,256 164,498 181,737

Semi-detached house prices in Leicester

The average semi-detached house price in Leicester was £231,457 in 2021.

Price growth averaged 75.17% for semi-detached houses in Leicester for the period 2011-2021.

Graph of Semi-Detached House Prices In Leicester

Semi-detached house prices in Leicester

Semi-Detached House prices in Leicester source: UK House Price Index
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Average Price 144,255 140,011 123,992 132,133 131,776 133,001 137,149 143,977 151,997 165,349 176,056 190,411 197,031 210,559 231,457

Detached house prices in Leicester

The average detached house price in Leicester was £362,777 in 2021.

Price growth averaged 78.67% for detached houses in Leicester for the period 2011-2021.

Graph of Detached House Prices In Leicester

Detached House Prices In Leicester

Detached House prices in Leicester source: UK House Price Index
Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Average Price 218,141 213,425 189,492 203,046 204,742 204,453 211,293 221,542 234,702 256,385 274,753 296,181 306,127 326,786 362,777

Leicester Rental Yields

Researching local rental yield information offers valuable insights into whether a property investment is likely to be profitable.

As of June 2022, Leicester rental yields ranged between 3.0% and 5.7% (source: propertydata.co.uk).

Data Sources

Property prices are from House Price Index Reports published by HM Land Registry.

Rental yield data is from PropertyData .

Population data is from CityPopulation.

Peter D Doherty

Peter D Doherty is the founder of the Property Investor Academy.

A Masters graduate in accounting and finance from Dublin City University, Pete worked in the City of London for 14 years. He held senior finance roles (Financial Controller) in several substantial UK commercial banks. He is a graduate of Macquarie University.

With over 10 years property investing experience, he is the owner of a London based lettings agency as well as proptech consultancy. He regularly contributes to online landlord forums such as Propertytribes and Reddit.  Peter is a member of National Residential Landlords Association (“NRLA”).

https://uk.linkedin.com/in/peter-doherty-tal
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