Bridging Focus: Leicester
Current House Price: £170,700
Year-on-year growth: 5.7%
Price relative to London: 35%
A shortfall in the construction of new homes in Leicester has seen prices rise in the city with the average price of a property standing at more than £170k. According to LSL Property Services, the East Midlands are delivering some of the country’s best rental yields.
Leicester has experienced a 10% increase in population since 2001 and has seen over £100m worth of investment secured via the government’s local growth fund.The city boasts a strong student contingent thanks to DeMontford University providing ample demand for student accommodation.
The Leisure & Tourism industries have also grown steadily over recent year and are now worth £1.31bn per annum.Leicester has also been well received by the logistics market, due to availability of development land and an fast access to motorway networks – namely the M1.The city is now well on the way to becoming an industrial hub which is providing healthy rental growth for commercial investors in the region.
The Charter HCP said: “Leicester is predicted to be a top 10 UK property hotspot in the next 10 years and that prediction is looking bang on the money.
“Leicester’s high rental yield and relatively low prices, means the city is as good a place for property investment n both the short to medium term.”