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If you are looking into the potential of investing in property but aren’t sure which cities or areas in the UK would be a worthwhile investment, Leicester is a prime spot. Based in the Midlands, Leicester offers great prospects and is a good choice whether you’re considering investing in buy-to-let property or looking for properties to flip. With its combination of affordable property prices, a booming student population, a growing economy and vibrant cultural scene, Leicester stands out as a top choice for property investment.
Why Invest in Leicester?
Below Average Property Prices with Strong Growth Potential
With an average property price of £231,000 [source: Office for National Statistics], Leicester sits below the UK national average house price of £282,000 [source: GOV.UK] offering great potential for investment.
With lower house prices, property in Leicester is more accessible than in many other UK cities, and yet it still presents a promising outlook for future growth. For example, in the past year, the average house price across the East Midlands increased by 1.6%, indicating steady and sustainable growth [source: Office for National Statistics]. This trend highlights Leicester’s potential as a smart investment choice, combining affordability with the prospect of ongoing value appreciation.
A Student City
Leicester is home to two major universities, the University of Leicester with approximately 17,000 students [source: UK Education Guide] and De Montfort University with more than 25,000 students [source: De Montfort University].
With such a large student population in the city, there is a consistent demand for student rental housing. This high demand creates a lucrative opportunity for property investors considering student accommodation as it offers good rental yields and long-term investment stability.
Leicester’s History and Culture
Beyond its educational institutions, Leicester has a great range of amenities that make it an appealing city to live in. The Leicester Tigers Rugby Club and Leicester City FC cater to sports fans, while the National Space Centre provides an engaging experience for all ages. The city also features great high street and shopping centres, including Highcross Leicester and Fosse Park.
Leicester is also steeped in history, notably as the final resting place of King Richard III. His remains were discovered in the city in 2012, and the King Richard III Visitor Centre offers a fascinating glimpse into this historical period. Areas like the Cathedral Quarter and the historic Guildhall add to Leicester’s rich cultural heritage.
Once renowned for its footwear and textiles industries – earning the nickname ‘Leicester clothes the world’ – the city now focuses on light manufacturing, services, and distribution, providing a stable economy and plenty of job opportunities.
Good transport links
Leicester benefits from excellent transport links, making it an attractive option for property investors. The city’s railway station is well-serviced, with frequent trains to key destinations including London (St Pancras), Birmingham, Nottingham, and other major cities. The journey to London typically takes around an hour, which enhances the city’s appeal to commuters and businesses alike.
In addition to the well-connected rail network, Leicester offers efficient bus services and a well-established park-and-ride system, ensuring convenient access to and from the city. These strong transport links make Leicester a practical and desirable location for tenants.
The Buy-to-Let Potential in Leicester
Leicester has one of the fastest growing populations in England, increasing by 11.8% since 2011 [source: Leicester City Council, 2023]. This rapid population growth is driving up rental demand in the city, as more residents creates a stronger need for housing. If you’re looking to make a buy-to-let investment, this rising demand offers a promising environment for securing tenants and maintaining high occupancy rates.
Whether you’re eyeing properties that are ready to rent out or those with potential for a bit of work, Leicester has something to offer. If you would like advice on the best buy-to-let options available or need some guidance on making the most of your investment, please speak to our team.
Property Flipping Opportunities
There are some great properties on the market in Leicester that would make an ideal investment if you’re interested in flipping properties. Many of our properties for sale are taken to public auction which offers you a fantastic chance of getting a good deal on an investment property, so be sure to attend the next one with our partner company Auction House Leicestershire. If you would like to learn more about the auction process, please give us a call.
Flipping properties is essentially about buying a property that needs some TLC – often a rundown property or one that hasn’t been updated in years. These properties tend to be cheaper, and with some renovation work, you can significantly increase their value. Once the work is done, you could sell the property for a profit or choose to rent it out. If this is of interest to you, speak to our team about the best properties available on the market for a property flip.
Best Areas in Leicester for Property Investment
Leicester has many great areas that offer strong prospects for property investors. Whether you’re looking at the city centre or areas like Stoneygate, Bradgate Heights, and Clarendon Park, Leicester has plenty to offer. Speak to us about our top recommendations.
Contact Readings for Expert Advice on Investment Opportunities and Leicester’s Property Market
At Readings, we have in-depth knowledge of Leicester’s property landscape and can guide you to make informed decisions that align with your investment goals. Get in touch with our team today to explore the best property investment opportunities in Leicester.
