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A guide on houses for sale in Leicester

by | Nov 15, 2022

Home $ House for sale in the UK $ A guide on houses for sale in Leicester

Leicester might be an interesting area to invest in when looking for a house for sale in the UK as it is a unique area in the county of Leicestershire.
Before looking for a house for sale in the city of Leicester we strongly suggest landlords and real estate investors to research in detail and consider all involved factors. Indeed, house prices can change quite a bit depending on the square foot of the property, the number of rooms, the economic climate, the location of the house and more.

In this data heavy article the reader will be able to find out more on the topic and see the specific data to consider when evaluating different houses for sale in Leicester.

Always consider average rental yield when searching for houses for sale in Leicester

If you’re buying a house for investment rather than for the reason to live in the house over time and use the house as a place to stay in the long term, there is a need to look at the rental yield figure to see if the house for sale you are considering to buy is a good investment or not.

This figure is usually looked at by investors as well as the rental income of the area, the sale turnover and the rent turnover.

The table below represents this data and compares Leicester to Leicestershire and the broader suburb of the UK; East Midlands.

Average Yield Average Asking rent Turnover (rental) Turnover (sale)
Leicester 4.1% £769 80% 14.6%
Leicestershire 3.36% £869 102.50% 16.04%
East Midlands 4.02% £775 113.13% 19.44%

Let’s assume you want to sell the house you’re looking to buy in Leicester for profit in the future, in this case, looking at the data for the number of houses sold per month in Leicester would give you an idea of whether the area is actively getting new investors. This figure is 124.

It is vital you be careful with this figure however as the data can suggest something that isn’t true in Leicester. To give an example, a lot of people buying new houses could also indicate there are a lot of new first time buyers in the area which would in fact drive down the rental yield.

The more people there are interested in renting, rather than buying, the more likely that area of the UK has high rental yields and hence investors like these areas to invest in to create a large amount of cash flow.

Are there new houses being built in Leicester to make it grow?

Before making an investment and move forward with buying a house for sale, another important set of data an investor should analyse is the growth trends of the area in question.

Below are the forecasted growth rates for the city of Leicester at 1 year, 3 year and 5 year intervals:

1 year 3 years 5 years
Leicester growth rate 4% 12% 27%

Examine this figure carefully as the addition of a lot of new houses to meet demand could mean that house price of the houses for sale in Leicester gradually reduces with an increase in the housing supply. This could be a good indicator to understand if your house will appreciate or not. Too many houses and too much supply could drive down the prices of homes or stagnate them. So be sure to check out what is exactly happening in Leicester.

On average, what is the figure for the asking price of a house for sale in Leicester?

In the city of Leicester, what is the average asking price for the houses for sale?

Average asking price (1 bed) £114,255
Average asking price (2 bed) £197,875
Average asking price (3 bed) £279,375
Average asking price (4 bed) £390,138
Average asking price (5 bed) £425,529

After looking at this table about prices of houses for sale in Leicester, someone who is buying a home would be able to know in great detail what kind of house for sale available on the market best suits the amount of money they are looking to invest. Also, using a more general figure like the average asking price per square foot of a property which is £0 will help them to have a more wholistic understanding.

As you go ahead and make offers on a house for sale, it is sometimes best to know what other people are offering for the same type of house for sale so you know what to offer yourself to get a good deal. So you should know, the average asking price of Leicester is £258,934.

Even though the asking price is not what the eventual price the house is sold at, making a note of the averages for the city of Leicester is useful when negotiating and knowing what to expect for every type of house for sale.

In Leicester, what do houses for sale tend to sell for?

There are a lot of factors that impact the final sale price a house for sale sells for in the UK and in Leicester. In Leicester, this sale price works out to be £203,339. As an example, a factor like population growth over the last 10 years which works out to be 8% in Leicester and impacts house prices of the houses for sale.

Housing category Total final sale price
Average sold price (detached) £303,426
Average sold price (semi-detached) £201,668
Average sold price (terraced) £180,645
Average sold price (flat) £122,526

Above, the exact type of house is also shown to vary in price in a table in Leicester. You may think that the bigger the house is the more expensive, but actually, this table is more based on the demand for the properties in each category.

Housing category Sale price per square foot
Average sold price/sqft £2,264
Average sold price/sqft (new build) £2,326
Average sold price/sqft (old stock) £2,144

In addition, here is the price per square foot. By taking this data and doing an average, it is also possible to work out the average square foot of houses in Leicester which is £2,264. From here you can get a sense of the price of the overall housing market and therefore, also find out the prices of the houses for sale.

In Leicester, what are the demographics like?

In Leicester, what are the deprivation levels like?

Deprivation of a city is defined as the number of people who are considered to not be earning enough to sustain their lifestyle. The UK average of deprivation nationwide is 33% so comparing the figure of 25% for Leicester should give you a nice idea of the deprivation in the area.

In Leicester, what is the social grade score?

In the city of Leicester, the social grade score of the area is 17%. But what does this exactly mean? The figure refers to the proportion of people in the two highest categories of skilled jobs.

The categories are grouped from A to E shown in the table below. Overall, a high social grade score means there are more affluent people working in managerial and professional roles in the area.

This table shows the average breakdown of the UK in terms of where most people in the UK are working so you can compare it to the social grade score of Leicester.

Social Score Category The proportion of the UK population (%)
A Professional, managerial or administrative 4
B Intermediate managerial or professional jobs 23
C1 Supervisory, junior managerial or professional jobs 29
C2 Skilled manual workers 21
D Semi and unskilled manual workers 15
E State pensioners, casual & lowest grade workers 8

How much do people in Leicester earn?

While not always the case, the amount people earn can be associated with better schools in the area and perhaps a nicer environment to live in.

£37,600 is the average household income of the area. And the higher this figure is the more likely it is that there is a higher percentage of people with a social grade score in the A or B categories which is 17% for Leicester.

Have the people of Leicester grown in numbers?

In total, the number of people in Leicester is 241,866. This figure can be used to estimate the appreciation of the houses but it is also important you look at the population growth figure in order to make this more accurate.

Whether a large population benefits you as a landlord is dependent on what you want from a home. A large population is great if you have children who prefer the bustle of crowds in cities but there are also those who purposely want to buy somewhere rural.

You may also be able to find a balance of both where there are shops, restaurants and entertainment and also rural areas all within a short distance which may be the case ni Leicester, depending on where exactly you are.

How has Leicester changed in the past five years?

Five years provides enough time for a city to grow dramatically. It may be the case that the population grows or shrinks but the city of Leicester has changed by 3%. Read more here

It is also helpful to compare this data to a longer time period like 10 years like in the below subheading. If the population trend of growth or decline has been there for a longer period of time you’ll be able to tell if 3% is a recent change or not.
Click here to know more on the UK population trends.

In the last decade, what is the difference in population in Leicester?

8% has been the population growth change in the past 10 years.

Usually, this is more of a conservative figure compared to the five year change of a city.

Industrial changes can also be the reason for this shift but it could also be due to immigration or emigration. Bringing people in or out of the area.

The recent global pandemic has also shifted the number of people living in cities as people realise they can now work remotely. It may be that the people of a Leicester have seen a more desirable way of working, moving to make themselves more comfortable in their careers.

For example, the population of the South west of England has seen a massive increase in population because workers want to move there to benefit from the slightly better weather, lower house prices and also the rural area. Nonetheless, they can also benefit from travelling to the capital city of the UK, London.

Is the crime rate bad in the city of Leicester?

Within Leicester, the number of people committing crimes is 208 per 1000 people. This figure directly relates to the safety of residents in the area which is one of the biggest factors in whether an area is considered desirable or not.

As a result, someone looking to buy a house here hoping for it to appreciate in value or buying a house here to produce rental income should check out the crime rate and compare it carefully to the UK average of 79.52 for every 1000 people to see how safe people living there will be.

If the area’s crime rate is too high, this may result in you having to pay for the renovation of burglaries or pay a premium on home insurance as insurance companies will charge you more for living in a dangerous area. So analyse this 208 figure carefully.

In the city of Leicester, how much green space remains for residents?

In the city of Leicester, there are 13.0 acres of green space per 1000 residents.

The charity, ‘Fields in Trusts’ recommends a minimum of 6 acres of green space per 1000 people so it is easy to see where Leicester is when seeing if green space availability is sufficient. This green space could be parks, nature reserves, public gardens or playing fields.

For the city of Leicester, what is the education level?

In Leicester, the proportion of people who have a degree is 23%. Generally speaking, as the number of people with degrees increases, the more people are able to afford houses to buy as a degree is a good indicator of a higher income. To put this into perspective, the average income of Leicester is £37,600.

This figure for average household income usually goes up alongside the percentage of people who have degrees.

However, this is not a hard and fast rule, there are many factors influencing the buying power of a population and hence the appreciation of housing and the number of houses for sale in the area. This can include the rental yields of the area and other demographic statistics like crime rate.

Nonetheless, it cannot be argued that those with degrees tend to live in more affluent areas as 82% of people who achieve a first in degree level education are owners of the place they live.

The city of Leicester, situated in Leicestershire, is a particularly impressive part of the UK because of the specific demographics of the location.

In the below headings, the city of Leicester and its demographics will be compared to its wider location (East Midlands). This includes population size, growth and population education now and into the future.

These statistics are heavily influenced by socio-economic factors and as a result this also shapes the projected house price of the houses for sale in Leicester. So, taking a good look at the data is essential to understand the area you are considering to buy in.

Advice from experts on properties for sale in Leicester

Considering all the above data and information provided, you may want know who can help you buy a house for sale.
Lots of professionals offer property investors and first-time buyers advice and assistance in dealing with the process of acquiring a house for sale.

Below, you can find a list of professionals that come in handy when looking for houses for sale:

  • Lender – Is someone capable of lending you the money you need to complete the purchase of the house for sale
  • Insurer – Insurance companies provide building insurances and other financial products you need to protect your real estate assets
  • Conveyancer – This professional will take care of the legal work needed when looking for a house for sale
  • Surveyor – Use this professional to assess the condition of the house for sale you are willing to buy, get an independent valuation and feel more comfortable when negotiating the final price
  • Mortgage broker or adviser – Different buyers can access different mortgages to buy a house for sale. Let the mortgage broker suggest to you which one is the best given your financial situation
  • Energy professional – Nowadays is more important than ever, to get professional advice on the Energy Performance Certificate (EPC) of the house for sale you are considering as your next investment

Thinking about other cities with houses for sale?

Examine this short list of cities belonging to East Midlands, the same region where Leicester is located.

If none of these is of your interest, we suggest you visit our landing page with all data related to the houses for sale in the UK.

Invest in a house for sale that meets your demands

Many criteria impact the price of houses for sale in Leicester.
Here below are the most important ones according to Lofti’s expertise:

  • Affordability – (see what house for sale can you afford?)

    A guide from the UK government

  • House Location – The borough and region of the UK you want to invest in is an important factor to consider when looking for a home for sale.
  • Transport – Commuting can be a waste of time. Minimise it by checking how long it will take from the house for sale you’re interested in, to your office before considering buying
  • Number of bedrooms – The number of bedrooms goes hand in hand with the house for sale price. If you are buying for the long period try to think if you might need an extra bedroom
  • Energy performance of the house for sale – The difference between an EPC rating of A and an EPC rating of G can impact your monthly utility bills, consider this when evaluating houses for sale.
  • Internet connection – Being able to take video calls from your home is crucial nowadays, always check the broadband of the area when browsing houses for sale
  • Car park – Ask the property seller for parking availability. If it is included in the price of the house for sale, you can justify paying more than you would at first glance
  • Conditions of the house for sale – Repair works can be expensive and take a lot of time, assess the conditions of the houses listed for sale before making an official offer.

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Donnell Bailey

Property expert

Donnell is a property expert focusing on the property market, he looks at a combination of legislation, information from property managers, letting agents and market trends to produce information to help landlords.

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