House prices and rents in Leicester are rising in Leicester which is good news for homeowners and landlords but perhaps not so good news for buyers who should ask themselves, is now the right time to buy a property whether it’s your first home or next investment? Especially with all the assistance currently available from the government and low-interest rate mortgages?
According to Rightmove, the sales of homes in Leicester in the last 12 months sold for an average of £190’691, these were semi-detached houses whilst terraced houses sold for an average of £159’152, more than £20’000 less. Detached houses fetched a much larger price at an average of £309’394, almost double that of semi-detached
Unsurprisingly, the central areas of Leicester were more expensive than areas just outside of the city with an overall average price of £204’326 whilst areas like Aylestone had an average property value of £149’423. However, areas like Clarendon Park and Stoneygate were more expensive than the city with homes costing buyers £221’365 and £286’010 on average respectively.
This means the overall sold prices over the last year were up 5% and up 15% since 2015, according to Rightmove, where the average value of a house was £178’422.
Leicester also boasts an average rental increase of 3.02% since last year placing Leicester as the top of the list for rental hotspots, beating Nottingham (who saw an increase of 2.96%) and also Peterborough (2.24%). This stacks well against the country’s average overall rental growth of 0.6%. Leicester rents have risen by 9% over the last 5 years.
Property investors will find Leicester to be a top place to purchase their next investment, ARLA, Association of Residential Letting Agents, says the number of tenants looking for somewhere to live had risen by 8% in March this year. This coincides with reports of landlords leaving the market and more people favouring renting a property over owning their own home.
David Cox, the chief executive of ARLA PropertyMark, says it could be masking the real issues. Rent hikes suggest landlords are trying to recoup losses caused by the recent legislative changes including recent energy performance changes and changes in tax relief for landlords.
Harry Albert Lettings & Estates have also seen a rise in tenants looking for properties to rent though landlords with available properties appear quite shallow, especially in the LE4 and LE2 postcodes. They’re encouraging landlords and property investors to get in touch if they’re looking to purchase their next property in Leicester which Harry Albert Lettings & Estates will be able to fully manage on your behalf.
It is wise talking to a qualified mortgage advisor on the type of mortgage, whether it’s a residential mortgage or a Buy to Let mortgage and what other finance may be available if you’re not a cash buyer but from the overall trajectory of the Leicester housing market, now is a fantastic time to own property and become a landlord. It’s easy when you instruct a reputable property manager like Harry Albert Lettings & Estates to look after every aspect of managing your investment for you.