Strategically located, economically diverse, and increasingly desirable — Leicester is a city on the rise. For seasoned investors seeking a strong blend of rental income and long-term capital appreciation, Leicester presents one of the most compelling opportunities outside London.
Investment Snapshot
Leicester benefits from a rare convergence of market drivers: a young and growing population, two major universities, a thriving SME and logistics sector, and well-connected infrastructure. The city’s residential market has historically offered 6–7% gross rental yields, with certain postcodes such as LE2 and LE5 consistently outperforming regional averages.
With the city’s economy forecast to grow steadily over the next decade, and major regeneration schemes such as Waterside Leicester and Space Park Leicester attracting jobs and businesses, there is solid demand for quality rental accommodation across professional and student demographics.
Capital Growth and Appreciation
Over the past five years, Leicester’s average property values have increased by more than 25%, underpinned by demand from both domestic and international buyers. Areas around Clarendon Park, Knighton, and Westcotes are attracting family buyers and professional renters, creating ideal exit strategies for mid- to long-term investors.
Given the planned infrastructure upgrades and commercial investment into the city, experts expect Leicester’s property prices to grow steadily by 4–6% per annum over the next 3–5 years.
Why Now?
High-value investors are often drawn to emerging regional cities that offer both scale and upside — and Leicester ticks both boxes. Its undersupplied rental market, price point well below the UK average, and a business-friendly environment make it a smart play in a maturing regional portfolio.
Quote from Tom Moorhouse, Director of Rock Harbour Invest:
“Leicester represents the kind of opportunity our clients value — a city with real fundamentals, untapped potential, and the ability to deliver healthy rental returns alongside long-term capital growth.”
