Leicester

Overview

The property market in Leicester has seen some interesting trends recently.

As of March 2025, the average house price in Leicester was £228,000, reflecting a 2.5% increase from the previous year.

Private rents have also risen, with the average monthly rent reaching £989 in April 2025, an 8.5% annual increase.

Leicester offers a diverse range of properties, from modern family homes to Victorian and Edwardian villas. Investment opportunities are varied, with student rental properties being a strong consideration due to the city's two universities.

The average property price in the Leicester postcode area is £298,000, though prices vary significantly by location.

A City on the Rise

Several key factors are shaping Leicester's property market:

Economic Conditions: Leicester has a high employment rate of 95.2%, making it an attractive location for buyers and investors.

Student Population: With two major universities—University of Leicester and De Montfort University—there is strong demand for rental properties.

Infrastructure Developments: Ongoing projects and Leicester’s strategic location with easy access to Birmingham and London enhance its appeal.

Government Policies: Schemes like Help to Buy support first-time buyers, while regulations such as the HMO Article 4 Direction impact rental property supply.

Supply and Demand: A tight housing supply and rising rents (up 13% over the past year) are influencing affordability and buyer behavior.

Steady Growth

The Leicester property market is expected to see several key trends in 2025:

Steady Price Growth: House prices in Leicester are projected to rise by 3.5% this year, supported by stable inflation and a potential drop in interest rates to 3.75%.
Rental Market Strength: Demand for rental properties remains high, particularly in areas like Highfields, Evington, and Braunstone, making them attractive for investors.
Selective Licensing Impact: New regulations aimed at improving rental property standards may add complexity for landlords, influencing investment decisions.
Market Balance: Leicester’s property market is currently at the lower end of a sellers’ market, meaning negotiations are more balanced between buyers and sellers.
Record High Prices: The average house price in Leicestershire has reached £291,972, with some areas like Harborough seeing 7.1% annual growth

Leicester Properties

A Piece of History

The Old Ground