The Safest Neighbourhoods for Rental Properties in Leicestershire13-11-2023 | East Midlands
Besides Stilton cheese and pork pies, Leicestershire has a lot to offer. Home to many professional sports teams, such as Leicester City Football Club, Leicester Tigers Rugby Club, and Leicestershire County Cricket Club, Leicester has a great atmosphere and is rife with opportunity, too. Rich in history and culture, the charming Leicestershire county offers many things to see and do, such as exploring the Charnwood Forest or choosing one of the many art galleries or museums to visit.
As a landlord, or someone looking to invest in property, you will definitely be spoiled for choice in this eclectic part of England. Leicestershire should be on your radar if you are looking to expand your property portfolio. We will take a look at some of the safest and most enjoyable neighbourhoods for rental properties as a landlord, including rental demand and property values.
As a landlord insurance brokerage in Leicestershire, here at CIA Landlords, we are dedicated to getting the best prices for you when it comes to all types of landlord insurance. With this comprehensive guide, you will know all that you need to before investing in the abundant Leicestershire.
Reasons to invest in rental properties in Leicestershire
What are the more practical reasons for investing in Leicestershire, and where are the safest neighbourhoods for rental properties?
Leicestershire is a county in the East Midlands and is bordered by Derbyshire, Nottinghamshire, Lincolnshire, Rutland, Northamptonshire, Warwickshire, and Staffordshire. The tenth-largest city in the UK, Leicester is known as the county town. It is no wonder that the county is an extremely popular and attractive place to invest in.
“Leicester and Leicestershire is the largest economy in the East Midlands, with a GVA of £23 billion”, according to Leicester and Leicestershire Enterprise Partnership (LLEP). It is clear to see that the economy in this area is strong, which is always the best sign for landlords and property investors to look out for. The economy in Leicestershire is growing faster than the UK average and is home to a number of major businesses such as Next, Sytner Group, Dunel, and Walkers. As well as retail, Leicestershire is a key player in the manufacturing, logistics and distribution industry.
Leicestershire’s population is expanding more rapidly than the UK average, driven by a high birth rate, net migration from other parts of the UK, and international migration. This rising population is fueling a strong demand for homes in Leicestershire, allowing for major growth in property investment in Leicester, too- the county city.
Affordable property prices
According to Rightmove, the average asking price for a property in Leicestershire in March 2023 was £296,952, compared to £324,807 for the UK as a whole, leaving property 8% lower in price than the UK average.
So, why is property so much more affordable in Leicestershire? One reason is that the county is located in the Midlands, which is generally a more affordable part of the UK than the south of England. Another reason is that Leicestershire is mostly a rural county, with a lower population density than many other parts of the UK. This means that there is more land available for development, which helps to keep property prices lower.
However, there are areas within the county that are more expensive, such as Wigston and Oadby. Generally, property is a lot cheaper in Leicestershire than in other parts of the UK. Additionally, the county has a range of property types to choose from, and there are good transport links to major cities such as Birmingham and London.
High rental yields
Rental yield is the measure of the profitability of a rental property. It is calculated by dividing the annual rental income from the property by the property’s purchase price. It is expressed as a percentage, and it is used by investors to compare the profitability of different rental properties.
Now, the rental yields in Leicestershire are some of the highest in the UK which means that you, as a landlord or investor, can generate a decent income from renting out your property in the area.
A diverse range of property types
If you are a landlord or a property investor who is looking for a variety of property types, then Leicestershire is the county to explore. There is a diverse range of property types available to you from apartments and townhouses to cottages and farmhouses. So, if you are on a limited budget, all hope is not yet lost.
Good transport links
Another great advantage to investing in Leicestershire is the great transportation links, especially in Leicester. You can easily get to the motherland, London, or other big cities like Birmingham and Manchester.
Leicestershire, and Leicester City in particular, is going through a significant period of regeneration in 2023. There are multiple regeneration projects being undertaken in the county and initiatives are being implemented to improve infrastructure, create jobs and boost the economy.
A particular example of a regeneration project that is currently being undertaken is £8.6 million being put into Leicester’s Pilot House from the government’ Levelling Up fund. The investment is said to create more highly skilled jobs and regenerate an integral part of the city, becoming a landmark in Leicester. The investment is said to create 250 jobs with a specific focus on the creative and design industry.
The value of rental properties in Leicestershire
So, we know that the county is an extremely beneficial place to invest in as a landlord and can be a great place to add to your property portfolio. Now, let’s take a look at some figures – the juicy stuff!
The average property value in Leicestershire in August 2023 according to HM Land Registry House Price Index was £303,169. Property values vary depending on the type of property, the location, and the condition of the property.
Detached houses are the most expensive type of property in Leicestershire, with an average value of £424,424. Flats and maisonettes are the least expensive type of property, with an average value of £239,091.24.
The most expensive areas in Leicestershire are Oadby and Wigston, where the average property value is £386,493.20. The least expensive areas are Blaby and Harborough, where the average property value is £239,091.24.
Please keep in mind that these are just average values and the actual value of any property will depend on a number of factors. It is always advisable to get a professional valuation of a property before making an offer.
As you can imagine, rental demand in Leicestershire is expected to remain strong for the rest of 2023, despite the rising cost of living and the potential for an economic slowdown. Why is this the case?
A growing population
Leicestershire’s population is growing faster than that of the UK average, due to a high birth rate, net migration from other parts of the UK, and international migration which is creating strong demand for housing in Leicestershire.
A shortage of housing
There is a shortage of housing in Leicestershire, particularly in the city of Leicester. This is accredited to a number of factors, including a lack of new development and the conversion of family homes into HMOs.
An increase in the number of people renting
More and more people are choosing to rent rather than buy their homes because of the rising cost of buying a home and the increased flexibility of renting.
The strong demand for rental properties in Leicestershire is pushing up rents. According to Zoopla, the average rent for a one-bedroom property in Leicester is now £750 per month. The average rent for a two-bedroom property is £900 per month and the average rent for a three-bedroom property is £1,100 per month.
The areas of Leicestershire with the highest rental demand are the city of Leicester and the surrounding towns of Oadby, Wigston, and Loughborough. These areas are popular with students, young professionals, and families.
Safest places to invest in rental properties in Leicestershire
There are five areas in Leicestershire that are considered to be the safest, which will automatically be an advantage for any landlord or tenant. The reason for these areas being the safest in Leicestershire is that the crime rates all fall below the national average.
The five safest areas in Leicestershire are:
- Market Harborough
According to the latest crime statistics from Leicestershire Police, the crime rate in the Harborough is 56.39 crimes per 1,000 people. This is significantly lower than the UK average crime rate in the calendar year 2022-23 of 75.88 crimes per 1,000 people.
The crime rates in Hinckley and Oadby in the period 2022-23 were also lower than the UK average. The crime rates in these areas were 70.84 and 69.87 per 1,000 people, respectively.
Let’s take a look at these areas in more detail.
Market Harborough is a quaint market town that offers a blend of modern amenities and historical landmarks, not to mention the good transport links. With great schools and a bustling town centre, anyone would be happy to live here!
With excellent amenities, this market town is a trending place to invest in. Market Harborough has a thriving town centre with a diverse range of shops, including independent boutiques, national chains, and supermarkets, as well as a weekly market.
There is also a wide selection of restaurants and cafes, offering cuisines from all over the world, to cater for all tastes and budgets. Market Harborough also has a good selection of pubs and bars, offering everything from traditional ales to craft beers and cocktails. For culture lovers, Market Harborough offers a number of attractions, including the Harborough Museum, the Old Grammar School, and the Symington Building.
There are also many leisure activities to enjoy, such as visiting the Harborough Leisure Centre, the Harborough Fields Sports Complex, and the Welland Park Golf Course. Market Harborough is also well-served for education, with a number of prestigious schools, including Robert Smyth Academy, Brooke Priory School, and Market Harborough College. Finally, Market Harborough has a great transport network, with regular trains to Leicester, London, and Birmingham, as well as a bus service to surrounding towns and villages.
Market Harborough is a thriving and vibrant town with a wide range of amenities to offer its residents. It is a great place to live, work, and raise a family, which makes it an even better place to invest in property.
Located just a few miles from Leicester, Oadby is known for its leafy suburbs, reputable schools, and spacious residential areas. It has a diverse community and offers a good range of amenities.
Oadby boasts a lively town centre that encompasses a diverse array of stores, spanning national chains, independent boutiques, and supermarkets. Additionally, a weekly market takes place every Saturday. In terms of dining and entertainment, Oadby offers a broad spectrum of global cuisine restaurants and cafes, along with pubs and bars that serve an array of beverages.
For those with a passion for culture, Oadby provides a range of attractions, including the Oadby Museum, the Oadby & Wigston Arts Centre, and the Parklands Leisure Centre, which hosts various events throughout the year. Oadby also caters to leisure activities with amenities like the Oadby Leisure Centre, the Oadby Fields Sports Complex, and the Brocks Hill Country Park.
Furthermore, Oadby benefits from a well-connected public transport system, featuring regular bus services to Leicester, Market Harborough, and Loughborough, as well as a train station offering direct routes to Leicester and London St Pancras International.
Coalville is a town located in the northwestern part of Leicestershire. It is known for its historical ties to coal mining, which played a significant role in the town’s development. While the coal mining industry has declined over the years, Coalville has evolved and diversified its economy.
Coalville is rich in industrial heritage and history. Surrounded by countryside, it is home to a number of nature reserves, including Snibston Country Park, Bradgate Park, and the National Forest.
Home to the prestigious Loughborough University, this town has a bustling atmosphere and a thriving student population. It offers excellent sporting facilities, good schools, and plenty of cultural activities.
Known best for Loughborough University which is recognised for its excellence in education and research, there will be ample opportunity as a landlord here.
The town’s historical architecture, such as the Carillon Tower and All Saints Church, adds character to the landscape. Loughborough also offers numerous parks and green spaces, providing opportunities for outdoor activities. With excellent transport links to nearby cities like Leicester and Nottingham, Loughborough is a dynamic and well-connected town.
Hinckley town is famous for its association with the hosiery and knitwear industry, which has contributed to its economic growth over the years.
Hinckley boasts several cultural and recreational attractions, including historic landmarks like St. Mary’s Church and the Atkins Building, which houses art studios and creative spaces. Green spaces like Hollycroft Park provide relaxation and outdoor activities and with convenient transportation links to Leicester, Coventry, and Birmingham, Hinckley enjoys a strategic location in the heart of England.
For landlords looking to make a sound investment in property in Leicestershire, the five safest areas of Market Harborough, Oadby, Coalville, Loughborough, and Hinckley present not only security but also diverse opportunities for rental income.
Each of these towns offers unique attractions and amenities, appealing to a broad range of potential tenants. With a stable property market and strong rental demand, investing in these areas can be a wise choice. From the picturesque charm of Market Harborough to the vibrant communities in Oadby, Loughborough, and Hinckley, or the historical legacy of Coalville, Leicestershire offers a host of options for landlords seeking long-term returns and a sense of security in their investments.
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