Leicester’s housing market continues to evolve, reflecting broader regional and national trends. With rising house prices and rents, the city presents unique challenges and opportunities for residents, prospective buyers, and investors alike. Here's an in-depth look at the latest data on house prices and rents in Leicester as of late 2024.

House Prices in Leicester

As of October 2024, the average house price in Leicester stood at £237,000, marking a 2.9% increase from the previous year’s average of £230,000. While this growth is notable, it lags behind the East Midlands' average annual rise of 3.9%, where the regional average house price reached £251,000.

Nationally, the average house price across Great Britain climbed to £295,000, up from £285,000 in October 2023. Leicester’s comparatively moderate growth suggests that the city remains a relatively affordable option for buyers within the region.

House Prices by Property Type

The average house prices in Leicester, broken down by property type, highlight the city's varied housing stock:

  • Detached properties: £402,000 (+1.5% YoY)
  • Semi-detached properties: £269,000 (+3.2% YoY)
  • Terraced properties: £212,000
  • Flats and maisonettes: £165,000

The modest increase in detached home prices compared to semi-detached and terraced homes suggests greater demand for more affordable property types, possibly driven by first-time buyers and young families.

First-Time Buyers and Mortgage Purchases

For first-time buyers in Leicester, the average property price was £216,000 in October 2024, a 3.1% rise from the previous year. This figure remains lower than the East Midlands average of £281,000 and significantly below the national average of £337,000, making Leicester a viable option for those entering the property ladder.

Mortgage buyers in Leicester paid an average of £241,000, reflecting a 3.0% increase from the prior year. Comparatively, cash buyers secured homes for an average of £226,000, which is a smaller annual increase of 2.3%. These figures demonstrate that mortgage-backed purchases continue to dominate Leicester's housing market.

Rental Market Trends

The rental market in Leicester has experienced substantial growth over the past year. In November 2024, the average monthly rent rose to £958, marking a 12.0% increase from £855 in November 2023. This annual growth outpaces the East Midlands average rise of 8.3%, as well as the national average increase, which saw rents across Great Britain climb to £1,319.

Rents by Property and Bedroom Type

Leicester’s rental prices vary significantly depending on the type of property and number of bedrooms:

  • Flats and maisonettes: £748 (+12.7% YoY)
  • Detached properties: £1,284 (+10.9% YoY)
  • One-bedroom properties: £666 (+13.1% YoY)
  • Four-or-more-bedroom properties: £1,374 (+9.5% YoY)

The sharpest increases are observed in smaller properties, suggesting growing demand amongst single tenants, couples, and smaller households. This trend may be driven by affordability pressures or a shift in preferences towards more compact, lower-maintenance living spaces.

Key Takeaways for Leicester's Housing Market

  1. Steady House Price Growth: Leicester's housing market shows steady but moderate growth in prices, especially for semi-detached and terraced properties.
  2. Rental Surge: The rental market has seen significant increases, with rents rising faster than regional and national averages.
  3. First-Time Buyer Appeal: With an average house price for first-time buyers (£216,000) well below national levels, Leicester remains a relatively accessible city for those starting their property journey.
  4. Demand for Affordable Properties: The data suggests a growing demand for more affordable property types, including flats and smaller homes.

Looking Ahead

As the housing market continues to adapt to broader economic conditions, Leicester’s relatively affordable property prices and rental rates position it as an attractive location for buyers and renters. However, the rapid rise in rents highlights the need for a balanced approach to housing supply and affordability. For investors and prospective buyers, understanding these trends will be key to making informed decisions in 2025 and beyond.

 

Source: Office of National Statistics