Property Investment in Leicester

Leicester, a dynamic city in the East Midlands, is emerging as a prime destination for property investment in 2025. With a blend of affordability, robust rental yields, and significant urban regeneration, Leicester offers investors a compelling case for both short-term returns and long-term capital appreciation.

Why Invest in Leicester?

As of April 2025, the average house price in Leicester stands at £227,000, reflecting a 2.2% annual increase. This growth trajectory positions Leicester as a city with substantial potential for capital appreciation.

The rental market is equally promising. The average monthly rent has risen to £993, marking an 8.3% year-on-year increase. This uptick underscores the growing demand for rental properties, driven by factors such as population growth and urban development.

Leicester’s combination of affordability, strong rental yields, and ongoing urban development makes it an attractive option for property investors. The city’s strategic location in the East Midlands offers excellent connectivity to major cities, further enhancing its appeal.

Urban Regeneration & Economic Growth

Leicester is undergoing significant transformation, with over £2 billion in public and private sector investments already made or proposed. Key projects include:

• East Midlands Freeport: A £25 million initiative expected to create nearly 10,000 local jobs.
  
• Waterside Regeneration Area: A £300 million project aimed at revitalising the city’s waterfront.
  
• Leicester Railway Station Regeneration: A £200 million upgrade to enhance connectivity.
  

These developments are set to bolster the city’s economy, attract businesses, and increase housing demand, making Leicester an attractive proposition for property investors.

A Thriving Student Hub

Leicester is home to three major universities: De Montfort University, University of Leicester, and Loughborough University, collectively hosting over 60,000 students. This substantial student population drives consistent demand for rental properties, particularly in areas close to university campuses. The presence of these institutions also contributes to a steady influx of young professionals into the city, further supporting the rental market.

Featured Development: The Old Ground 

Amidst Leicester’s growth, Clann Investments presents The Old Ground, a thoughtfully designed development offering modern living spaces in a prime location.

Development Highlights:

• Unit Types: Studio, 1-bedroom, and 2-bedroom apartments.
  
• Price Range: From £121,000 to £224,950, offering affordability in a growing market.
  
• Completion Date: Scheduled for Q3 2025, allowing investors to plan.
  
• Leasehold: 999-year lease, providing long-term security.
  
• Service Charge: £2.58 per sq ft, ensuring well-maintained communal areas.
  

Investment Appeal:

• Strong Rental Yields: With Leicester’s average rental yield at 4.79%, properties like The Old Ground are poised to offer competitive returns.
  
• Capital Growth Potential: The city’s projected population growth and ongoing regeneration initiatives suggest a positive trajectory for property values.
  
• Strategic Location: Proximity to key amenities, transport links, and employment hubs enhances the desirability of The Old Ground for prospective tenants.

Clann’s Perspective

At Clann Investments, we are committed to identifying and developing properties that offer both immediate returns and long-term value. The Old Ground embodies this philosophy, providing investors with an opportunity to be part of Leicester’s exciting growth story. With a focus on quality, location, and investor satisfaction, we believe The Old Ground is a sound investment choice in the current market.