The Cost of Housing in Leicester: What You Need to Know

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The Cost of Housing in Leicester: What You Need to Know
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The property market of Leister is truly dynamic. Similar to the rest of the UK, the cost of property has continued to increase in Leicester. Although, certain areas of the city have experienced higher growth than others. So if you’re looking to purchase a home or even considering renting in Leicester, you may find that prices have increased considerably. As a result, finding affordable housing in Leicester can prove to be a difficult task. 

However, in this article, we’ll provide a comprehensive guide on the cost of housing in Leicester, including key factors influencing prices and tips to find affordable accommodation. 

What influences the cost of housing in Leicester?

As the cost of housing in Leicester continues to increase, you may find yourself asking what is causing the sudden increases. You may also wonder how or when the Leicester housing market will reduce and become more affordable. Essentially, the housing market is affected by several factors which can affect the price. Consider the following:

Location and proximity to amenities

Properties which have popular amenities at a close distance are guaranteed to benefit from competitive pricing, not only for buying but for renting too. Local amenities such as schools, places of worship, offices and shopping centres are all reasons why someone would want to live in a specific area. Therefore location is one of the biggest factors behind the differences in housing prices. Especially if you consider a city the size of Leicester, there are plenty of amenities scattered throughout the city, which affects house prices.

Property type and size

Different properties attract different demographics. For example, studio apartments or flats are more likely to be popular among a younger demographic, such as students and young working professionals. As the Leicester rental prices vary considerably, studio flats or single rooms are likely to be one of the more affordable options in the city. 

As the overall area and the number of bedrooms increases, the demographics also change. Larger families or more wealthy individuals may prefer having more space. As a result, they will drive up the house prices in the city as they look to price out other buyers. This leads us to the next factor.

Demand and supply in the local housing market

As the properties in the local area become occupied, others looking to move to the city or as families grow older – a new generation looking for their own space will struggle. This is the supply and demand issue which is another major factor affecting the cost of housing in Leicester. Simply put, without enough properties, the demand continues to grow. This can further impact finding affordable housing in Leicester as landlords look to increase rental prices. 

Economic factors such as interest rates and employment rates

Key factors such as interest rates are also responsible for changes in the cost of housing in Leicester and beyond. As the interest rate increases, those reliant on mortgages will be expected to pay more monthly, thus affecting the budget. Similarly, if the interest rate is low, there will be more room to spend, allowing for the option of buying higher-value properties. 

Additionally, with factors such as recession, employment rates can increase. This can result in a higher demand for affordable accommodation. 

Average house prices in Leicester 

If you’re looking to purchase a home in Leicester, the average price of a property in Leicester stands at £226,242. However, the average changes by area, property type and size too. 

Consider the following:

Average property price by area

  • City Centre – LE1 £167,167
  • Hamilton, Thurnby Lodge, Evington – LE5 £241,833
  • Wigston, South Wigston, Kilby – LE18 £271,632.
  • Oadby, Knighton, Highfields – LE2 £286,952.
  • Blaby, Great Glen, Fleckney – LE8 £332,327

Average property selling prices by type

  • Detached £432,773
  • Semi £275,427
  • Terraced £234,261
  • Flat £146,593

Average property price by size

  • One Bedroom £129,059
  • Two Bedroom £205,479
  • Three Bedroom £294,551
  • Four Bedroom £439,276
  • Five Bedroom £555,747

Rental prices in Leicester 

Similar to house prices, if you’re looking to rent, the average price changes by area, size, and property type too. Again, factors such as supply and demand and location are the primary causes for this. 

Average rental price by area

  • City Centre – LE1 £1,075 pcm
  • Hamilton, Thurnby Lodge, Evington – LE5 £1,116 pcm
  • Wigston, South Wigston, Kilby – LE18 £911 pcm.
  • Oadby, Knighton, Highfields – LE2 £925 pcm
  • Blaby, Great Glen, Fleckney – LE8 £875 pcm

Average Rental prices by type

  • Room £683 pcm
  • Flat £920 pcm
  • House £1,106 pcm

Average Rental Prices by Size

  • One bedroom £734 pcm
  • Two bedroom £979 pcm
  • Three bedroom £1,024 pcm
  • Four bedroom £1,261 pcm
  • Five bedroom £1,457 pcm

Tips for finding affordable housing in Leicester:

Now, regardless of the condition of the housing market in Leicester. It can still be possible to snag a deal. That’s even if you’re renting or buying. It may take a bit of time and effort, but it is possible. If that is your goal, ensure you keep the following in mind. 

Researching and comparing prices of different properties

Ensure that you have data in hand. If you’ve settled on a specific area, type, or size of the property, make sure you compare similar properties. Ensure that you’re aware of how they differ and how the price changes. This may help in identifying properties that can fit your needs. 

Considering alternative locations and property types

If a particular area or type of property seems to be out of budget, then it may be worth looking at different options. In a city like Leicester, getting around isn’t too difficult. Therefore an area five minutes away from where you originally wanted may not make too much of a difference. Perhaps it may even offer different amenities.

Negotiating rental agreements and fees

Before you agree to any rental property, ensure you’re well aware of all the fees and have read through the agreement. You may be able to reduce the overall price by simply negotiating. 

Seeking financial assistance or incentives for first-time homebuyers

For first-time homebuyers, it’s already difficult enough to purchase a property. However, ensure you’re up-to-date with the incentives and offers that are available out there. From ISA, Loans to government schemes, there’s a lot out there to consider. The majority of the financial incentives are only available if you’re looking to take out a mortgage. Unfortunately, they’re not usually available to cash house buyers.

There’s a lot to consider when it comes to the housing market in Leicester. However, once you’re aware of what’s available and how they can meet your needs, the rest should become more straightforward. 

If you’re ready to move but need to sell your house quickly, then you’re in the right place. Here at WeBuyAnyHome, we can act as cash house buyers to get your house sold fast. We can purchase your property in as little as seven days, helping you get ready to move. Get in touch to find out more.

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