This post will help you find the best areas of Leicester to invest in Buy-to-Let! Situated in Midlands, Leicester attracts plenty of property investors because of its low property prices. This trend is similar to what we see in the North of England. Since Leicester is located in the far South, it benefits more from the South-East Economy of England. It is this ideal location of Leicester that allows investors to seek affordable properties in the area.
Here is Why You Should Invest in Leicester…
It is no surprise that Leicester has been making steady growth over the past few years. It is located on two main rail lines connecting the country. It is one of the oldest and also the largest cities in the UK. The population rate is expected to increase by a whopping 11% in the next twelve years. Presently, Leicester has a population of approximately 540,000 people.
Leicester is a city with a colorful history. It dates back to the first century B.C.. Manufacturing units were set up here long ago. The fast-paced industrialization transformed this city into a bustling market of knitwear, footwear, and textile goods. The whole world benefitted from its top-quality cloth. Over the years, Leicester has developed its economy according to modern standards. Its economy has been strengthened by setting up manufacturing units and thus creating employment opportunities for people from all over the country. Job seekers are also attracted by the services and distribution systems in place in Leicester. More and more individuals are seeking better means of earning and living in Leicester.
Big companies have cashed in.
Big companies have cashed in on the influx of job seekers. Some of the UK’s largest businesses employ scores of individuals in their manufacturing units set up in Leicester. Among them are Barratt Developments (Construction), Aggregate Industries (Quarrying), and Caterpillar Machinery (UK). According to data collected in the year 2001, Leicester is the 14th largest metropolitan economy in the UK based on GDP. Between the years 1999 and 2016, the number of jobs increased at a steady pace, as indicated by the data collected by the ONS enterprise.
The high profile merger
The high profile merger of three healthcare establishments, namely Leicester General Hospital, Glenfield Hospital, and Leicester Royal Infirmary, has attracted hordes of investors from across the UK. As a result, the NHS Trust was set up in April 2000, and it is to date the largest health provider in Leicester. The number of employees exceeds 15,000, and it is expected to increase rapidly as more patients seek treatment at the NHS Trust.
Education sector in Leicester.
Leicester has long suffered from a lack of quality education facilities. The Mead Educational Trust or TMET was formed in 2014 to focus on high quality and affordable education for all. More primary and secondary education institutes soon started partnering together. The Bradgate Education Partnership was formed in 2016 to further develop the education sector in Leicester. In collaboration with 11 MAT status schools, this partnership has successfully attracted more students seeking quality education at affordable costs. Students from all over the UK are choosing Leicester for higher education as well. Leicester houses three of the leading universities in the UK with over 50,000 potential graduates. The De Montfort University is one of them offers well-rounded undergraduate programs, and it is the first choice of many aspiring individuals.
Leicester has various options for student accommodation. Private rentals are popular among individuals coming from across the UK. Entrepreneurs are dipping into the residential market to attract students. Almost all the universities have on-campus living solutions available, but the City Centre is more attractive for young people to experience living abroad.
Leicester is ethnically very diverse. It has a rich Roman history dating back to A.D. 47. Ancient buildings and cultural sites keep the tourists coming all year round. Local hotels and restaurants thrive on the curiosity of the visiting community. The mix of culture, religion, and history translates beautifully into the inviting spirit of Leicester.
Sports clubs in Leicester are famous across the UK. One can say that the popularity of the football club Leicester City FC rivals that of the Rugby Club Leicester Tigers. The enthusiasm and interest shown by lovers of sports is a thing to marvel at.
This city loves to celebrate. Regardless of religion, any cultural festival is welcomed by all. It is said that the world’s largest Diwali festivities outside India can only be experienced in Leicester. Asian culture can be lived alone on the Golden Mile. It is a strip of Belgrave Road in the north of the city center. Vibrant jewelry shops, tasteful eateries, and fashion outlets of India beckon tourists.
Leicester is connected with all the major cities by airports and rail routes. It is connected to important cities by the M1 and M69 motorways. It is literally the center of all activity. Birmingham can be reached within 45 minutes by rail while London is hardly an hour away. All these factors contribute to the importance of Leicester in the UK’s economy with respect to property investment.
Leicester Property Prices
When compared with property trends across the UK, Leicester has relatively low-cost property options. These prices are expected to increase at a steady rate owing to the increased interest of investors combined with an influx of students and tourists. According to a survey conducted by PlumPlot, between September 2018 and August 2019, the average property price in the Leicester postcode area increased by 2%. The cost of a newly built property was 302k, whereas the price of an established property was 229k. The lowest prices start from was 95k compared to the highest price of 452k.
As the population keeps growing, Leicester faces a shortage of affordable accommodation on rent. Investors, especially landlords, have started acquiring properties and charging higher rates of rent to reap the benefits. The latest data obtained by Landbay indicates that rental prices have shown the highest values in Leicester in the whole of England. In March 2018, the rental values increased by 3.02% compared to the year 2017. On the whole, rents have risen by a whopping 9% over the last five years. Rents are up, and the market is booming.
Investing in Leicester
The Leicester City Council has been formed to regulate planning permissions and building approvals. They make sure that new properties are safe for the public as well as the environment. All new constructions and structural alterations afterward have to be approved by the council before commencement. This step was taken to ensure the city’s developing property market does not harm the city as a whole in the long run.
The best areas to invest in Leicester can be determined by observing the house prices in each sector. Leicester midlands are divided into four broad regions concerning investment decisions. These include the City Centre, the Western Suburbs, North and North East Leicester, and the Southern Suburbs. Each has its own set of advantages for potential investors.
The City Centre
The centre of Leicester city has a good number of well-established markets with flats as a desirable living solution. It is small with roughly 9000 people but expected to attract more investors owing to its quaint waterside setting. Renovations and updates have been proposed to revamp the city. More city living flats are to be constructed to take advantage of cheap property rates in the area. Presently, the average housing is valued at 190k, much lower than other postcode areas. Rental properties are expected to yield 5-6% on an annual basis.
The western suburbs are ten times more densely populated as compared to the Leicester city centre. Average housing prices range between 200k and 300k. Investors can expect returns of 4%. It is a bustling city with large businesses providing ample job opportunities for everyone. The western suburbs attract families looking to settle in well-designed housing schemes. A major plus is the M1 motorway that connects large cities to the area.
North and North East Leicester
Leicester has a population of around 130,000 people in the north. Both north and northeast Leicester has a blend of property options that investors can choose from. Cheap, as well as high-priced property types, are found here. So it benefits every investor according to his budget, and the expected yield of 4% makes it all the more attractive. Housing is priced between 200k and 260k. Highfields is under-developed like other inner-city suburbs.
On the other hand, Beaumont Lays boasts an extensive housing scheme complete with a thriving shopping mall and many districts. Moving outwards, you find Thurmaston and Bristall to be moderately priced living areas. Village style areas, namely Groby and Antsey, attract people due to their peaceful setting and proximity to the M1 and Leicester city.
The southern suburbs are closer in population numbers to the western suburbs. South Leicester is located along the London Road and Harborough Road. With about 95,000 people living here, it is the most popular area having smartly designed districts. Knighton and Stoneygate attract job seekers into the city as well as students. Families, on the other hand, prefer to go for places like Wigston due to their countryside setting and 300k pricing range. However, average housing prices range between 260k and 330k.