Leicester Experiences Fastest Growing Rent Prices Across UK

Harry Albert Lettings & Estates Leicester Letting Agents Belgrave Letting Agents

Leicester has been ranked by the Landbay Rental Index Report of April 2018 to be the highest growing city in the UK for rental growth. Rents in Leicester have risen 3.02% in April 2018 over the last 12 months whilst the average rents overall for properties in England has only grown by just 0.64%, this means property rental values in Leicester are growing more than 4.7 times faster than the UK average.

Areas with the Highest Rental Growth in England

Region City / County Average Rent (pcm) Average Rent Value Growth (%)
East Midlands Leicester £647 3.02%
East Midlands Nottingham £663 2.96%
East Midlands Northamptonshire £732 2.44%
South West Bath and North East Somerset £976 2.35%
East England Peterbrough £639 2.24%
East England Cambridgeshire £948 2.21%
East England Suffolk £734 2.15%
East England Norfolk £709 2.06%
East England Southend-on-Sea £762 2.06%
South West Bournemouth £821 2.04%

House on coinsAcross the UK, rents have increased but is largely affected by the high rents in London which have fallen slightly the last few months due to falling demand in the capital. Leicester’s rent growth may be influenced by increased demand and increasing house prices whilst other parts of the country experience slowing house prices. Leicester’s renta index over the last 12 months came in higher than any other area of England at 3.02% and the Leicester average rent is £647 per calendar month or £149.07 per week. In recent years the government has brought in new laws which set out new obligations that landlords are having to meet, the costs associated with these are contributing to the increase in rents over the last 12 months and these costs (and as a result, rents included) are set to rise further over the coming years with the Government withdrawing mortgage interest rate tax relief, the tenant fee ban (which is predicted to see rents rocket by £60 per month) and landlord licensing, including Planned Licensing for Leicester landlords.

With the average rent being £647 per calendar month according to Landbay, it is difficult to pinpoint what the average rent dependent on number of bedrooms is but, from our own data, we have found the average rent in Leicester to be £643; the table below shows the average price achievable as per the number of bedrooms in the property plus the average growth year on year for properties in Leicester:

Number of Bedrooms Average Rent (pcm) Yearly Growth (%)
1 £537 2.81%
2 £665 Data Unavailable
3 £726 4.63%

Stacks of Coins representing landlord wealth - Call Harry Albert Lettings and Estates on 0116 321 4970We speculate that the cause of the rising rents is a cause of a lack of supply to meet the growing demand for properties, especially family homes as can be seen by the dramatic variation between the growth in rents for one bed properties in Leicester and three bed homes in Leicester. As a result of the increasing demand/falling supply, even with Government plans to build 300 new homes per year by the year 2020, we expect rents to continue to rise which means now is a great time to become a landlord in Leicester! It is vital that landlords achieve the optimal level of rent for their properties and Harry Albert Lettings & Estates are able to do just that; as Leicester’s leading, local, online letting agent, they’re able to provide a hands-on, reliable and professional service and are able to really reinvest their profits into the services they offer to landlords unlike your typical high street agent.

In fact, over the next five years, Leicester’s average rent is expected to rise to a whopping £1’094 per calendar month and with the average mortgage cost being just £663 per month (according to The Money Charity), that’s a gross profit of £432 per month or £5’184 per year, less than half of your tax-free personal allowance!

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