Best areas to invest in property in Leicester

Looking to maximize your ROI and rental yield in Leicester? Explore the top buy-to-let and rent-to-let property investment opportunities available in the city today.

Best areas to invest in Leicester

1.Leicester City Centre

Leicester City Centre offers strong investment potential in 2024, with average property prices at £208,023 and rental yields of 5-8%, bolstered by regeneration and a good student population.

• Housing: Mix of modern apartments, converted warehouses, and period properties; mid to high-range prices
• Amenities: Highcross Shopping Centre, Leicester Market, numerous restaurants, bars, and cultural venues like Curve Theatre
• Transport: Leicester Train Station, extensive bus network, good road connections
• Notable: £250 million Waterside regeneration project; consistent 4-5% rental yields; high student population (>40,000) ensuring steady rental demand

2.Clarendon Park

Clarendon Park offers strong rental yields and ongoing demand from students and young professionals in 2024, making it a prime investment area.

• Housing: Victorian terraces, some modern developments; mid-range prices
• Amenities: Queens Road’s independent shops, cafes, and restaurants; Victoria Park nearby
• Transport: Good bus links, a 20-minute walk to the city center
• Notable: Popular with students and young professionals; steady rental demand

3. Stoneygate

Stoneygate in 2024 offers promising investment potential with attractive properties and a desirable Leicester location.

• Housing: Large period homes, some apartment conversions; mid to high-range prices
• Amenities: Allandale Road and Francis Street’s boutique shops and eateries
• Transport: Regular bus services, 2 miles from the city center
• Notable: Affluent area with good schools; potential for high-end rentals or house sales

4. Aylestone

Aylestone, Leicester, offers a promising buy-to-let investment opportunity in 2024 due to population growth, housing shortage, and proximity to amenities, making it attractive for investors

• Housing: Mix of Victorian terraces and newer builds; affordable prices
• Amenities: Aylestone Meadows nature reserve, local pubs, and shops
• Transport: Great Southern Railway Walk, good bus connections
• Notable: Up-and-coming area benefiting from regeneration; potential for capital growth

5. West End

West End, Leicester, offers a promising investment opportunity in 2024 due to ongoing regeneration, strong rental demand, and its diverse community and proximity to universities.

• Housing: Terraced houses, some apartment developments; mid-range prices
• Amenities: Narborough Road’s diverse shops and restaurants, Bede Park
• Transport: Close to De Montfort University, good bus links
• Notable: Multicultural area popular with students; strong rental market

What is the average rental yield in Leicester?

The average rental yield in Leicester is approximately 4.2%, based on data from propertydata.co.uk. The LE1 postcode district stands for the highest rental yield in the city at 7.2%, whereas the LE15 postcode district has the lowest, with a yield of 2.9%

Contact Pluxa Property to explore all property investment opportunities in Leicester

Pluxa Property, the leading property investment firm in the UK, can help you explore areas with high-ROI opportunities in the Leicester market. 

With over 10 years of expertise, we offer a wide range of services, including:

• Rent to serviced accommodations
• BRRR investments
• Buy to serviced accommodations in UK

Our team of experts can assist you in finding the right property, negotiating the best terms, and implementing effective management strategies to maximize your returns.

👉 Contact Pluxa Property today to start your property investment journey in Leicester.

FAQs

Is Leicester a good place to invest in?

Yes, Leicester is a good place to invest. Because it presents a promising investment opportunity, particularly in the commercial real estate sector. The city has demonstrated resilience, achieving a gross yield of 6% in its corporate estate, with a revenue return of over £8.3 million despite market challenges. This performance indicates a stable and sustainable income potential for investors. 

What is the average monthly private rent in Leicester?

As of June 2024, the average monthly private rent in Leicester has risen to £921, marking a 12.8% increase from £817 in June 2023. This growth outpaces the overall increase in the East Midlands, which saw a 9.3% rise during the same period.

Is Leicester a good place for rent to let?

Yes, Leicester has an attractive opportunity for rent-to-let investments, with average rental yields reaching 6.78% in the city’s corporate estate. The demand for rental properties remains strong, driven by a growing population, including a large student community, and a thriving economy. Despite market challenges, Leicester’s rental market has demonstrated resilience, with rents rising by 20% as available rental stock is up by 16% since 2020. These factors contribute to the potential for stable and sustainable returns for investors in the Leicester rent-to-let market.

What is the estimated payback period for rent to rent in Leicester?

The estimated payback period for Rent to Rent in Leicester is approximately 8 months, according to Pluxa Property. This timeframe is based on typical market conditions and investment strategies in the area.

How much initial investment do you need to invest in Leicester for rent to rent?

Investing in a rent-to-rent deal in Nottingham through Pluxa Property requires an estimated initial investment of £9,231. This could generate an estimated monthly profit of £712, leading to a total profit of £25,620 and an impressive ROI of 427%.