Property investment stats for Leicester, East Midlands

• Investors can benefit from strong rental performance, with average yields of 6.3% and yields in the top postcode district reaching 11.2%.
• High student and young adult populations (both in the top 10 percentiles nationally) underpin robust demand for rental properties, especially flats and HMOs.
• The family household share is high, in the 85th percentile, supporting steady demand for three-bedroom houses with a median asking rent of £1,235.

• The unemployment rate is in the 92nd percentile, which could impact tenants’ ability to pay rent reliably.
• Owner-occupation is low, in the 16th percentile, which may limit the pool of buyers if you plan to resell to homeowners.
• Capital growth over one year is -0.4%, so short-term price appreciation has been muted compared to the three-year annualised rate of 3.7%.

Rental demand in Leicester looks set to remain strong, given the city’s youthful and diverse population and high proportion of private renters. The sales market is active, with 2,461 transactions in the past year and a typical time on market of 50 days, indicating reasonable liquidity. Properties are selling at a median discount of £3,000 (the typical achieved discount), suggesting some room for negotiation on price.

While short-term capital growth has been modest at -0.4%, the three-year trend of 11.5% (annualised at 3.7%) points to steady, if unspectacular, long-term appreciation. Affordability remains better than in many other cities, with current asking prices for three-bedroom houses at £279,000 and two-bedroom flats at £150,000. Investors can expect Leicester to continue offering attractive rental yields and a stable market environment.