Leicester Is the Top Spot for Landlords
Leicester has hit the headlines as the country’s top hotspot for landlords to see a great return on their property investment as the city experiences the fastest growing rental prices in the UK.
The April 2018 Landbay Rental Index Report, on behalf of the peer-to-peer lending firm Landbay, ranks Leicester in number one spot thanks to its highest rental growth. On average, Leicester rents have gone up by 3.02 per cent in the 12 months to April. This compares to an English average rise of 0.64 per cent, meaning that Leicester rental values are growing at a rate that is almost five times quicker than the average for the UK.
The Landbay index cites the average rent in Leicester as £647 for April, signalling the growth of just over three per cent and highlighting the potential the East Midlands has to offer for landlords looking to maximise on their property investments. To further evidence this, Nottingham came second in the index with a rental growth rate of 2.96 per cent, followed by Northamptonshire with average growth of 2.44 per cent.
The top of the index was completed by Bath and North East Somerset at 2.35 per cent, Peterborough with 2.24 per cent growth, and then Cambridgeshire with 2.21 per cent. Also included were Suffolk with 2.15 per cent, Norfolk at 2.06 per cent, Bournemouth at 2.04 per cent and Southend-on-Sea at 2.06 per cent.
Leicester’s rental price growth is believed to be being influenced by an increased demand from tenants looking for properties and rising house prices.
In contrast, other areas of the country have been experiencing slowing house prices, and while overall rental prices have gone up, this is largely due to London rents. These have gone down slightly in recent months, however, as a result of falling demand.
Family homes are in particular demand in Leicester, offering huge potential for landlords looking to invest in the city. Also on offer is the possibility of seeing huge rises in the future, with some figures estimating that the average rent in Leicester will reach £1,094 in the next half decade.
If you are a landlord looking to expand your Leicester property portfolio or take your first steps on the buy-to-let ladder, then our letting agents are on hand to help. Get in touch today for the best possible help and advice to help you cash in on the property potential that our great city undoubtedly has to offer, both now and in the future.