Nestled in the heart of the UK, Leicester offers a whole host of amenities combined with a unique charm that draws people from across the country. Additionally, as the 11th most populous city in the country, it’s no surprise that it has become a hotspot for potential property investors.
With all of this considered, it’s no wonder that the question on many minds is, “Is it worth investing in property in Leicester?”. Fear not; you’re in the right place.
In this article, we’ll uncover what the property market in Leicester looks like, and we’ll aim to provide you with insights to help you make an informed decision.
Let’s get started!
Is Leicester a good place to invest?
To answer this question, we first need to look at what exactly makes a city good to invest in.
Consider whether the city has…
A Good Economy?
Well, Leicester has been named the best place to live and work in the East Midlands according to PwC’s – Good Growth for Cities Index. Additionally, PwC has also noted Leicester as being one of the top performing cities for three years in a row. All of this is evidence that Leicester is a great place in terms of economy.
If you’re investing in property, you’ll most likely look to rent it out to tenants. They will of course be drawn to the city for family or work. Now Leicester is home to many large companies such as Next, Sytner, Watches of Switzerland and many more. As a result, Leicester boasts a higher than average rate of employment at 95.2% based on the 2020 census. Again, this is indicative of a city in demand.
An Increasing Population?
Cities with a growing population tend to have a higher demand for properties. Leicester has recorded an 11.8% growth in its population from 2011 to 2021. Now, this figure is likely to continue rising. So, another tick for this.
Due to Leicester’s location, many major cities are within a commutable distance. This, again, makes Leicester an attractive city to live in. Again, providing support for Leicester is a good place to invest in.
Now these are just some factors that help to paint a picture of why Leicester may be a good place to invest in.
Another important aspect is to consider what is happening to house prices in the city.
Are house prices going down/rising in Leicester?
Now, this won’t come as a surprise, but prices in Leicester are rising – much like the majority of the UK. In fact, over the last 20 years, house prices, on average, have risen by 152%.
The average price of a property in 2003 was £104,345, whereas now, at the time of writing, the average house price is £263,105.
To put it into perspective, at the same time, property prices in Manchester have risen by 210% to an average of £255,530. Meanwhile, in Birmingham, property prices have risen by 117% to a total of £227,031. Property prices in Leicester are still higher than in both of those cities.
With that said, last year (2022), it was documented that Leicester was one of the cities with the weakest annual growth for house prices in England. This indicates that house prices are rising but at a stable rate. This isn’t necessarily a bad thing.
Leicester has recorded a substantial property price increase over the last 20 years, but it has done so in line with many other cities.
Is Leicester a growing city?
As mentioned earlier, the population of Leicester has grown almost 12% in the last ten years. But what about the city itself?
From expansions, demolitions, and infrastructure projects, Leicester is definitely a city in demand. In fact, there are projects planned for many different areas in the city that will affect leisure centres, shopping centres, schools and even a prison.
All of this points to the fact that Leicester as a city is continually developing and evolving with the demands required for a growing population. For would-be investors, this is another great sign.
Why you should move to Leicester
Leicester offers many reasons why you should consider making it your new home. One of the most appealing aspects is its stable property prices, which means your investment can grow at a steady pace, in line with the rest of the UK.
No matter what your preferences are, Leicester has the perfect area or neighbourhood for you. If you’re on a budget – don’t worry; there are plenty of affordable areas. If you’d like the perks of a city while living in a quiet area, Leicester offers that too.
For families, there are plenty of educational facilities. From schools and colleges straight through to internationally recognized universities, ensuring accessible learning opportunities for all. Plus, the city’s job market provides opportunities for career growth and professional advancement.
Leicester really does have something for everyone, and it’s for that reason alone that makes it such a wonderful city to call home.
Investing in Leicester is a smart move with stable property prices excellent location. And a growing population that promises to drive rental demand. For investors looking for rental properties, the city offers a thriving student population which will provide a steady stream of tenants.
Leicester offers investors a perfect blend of stability and growth prospects, making it a top choice for those seeking profitable and rewarding investments.
If you’re looking to sell a flat fast, we can help. No matter where it is or even if you have tenants, we can make a cash offer to purchase your property. If you’re happy with the offer, we can even conclude the sale in as little as seven days. Simply get in touch to receive your free cash offer.