House prices across Leicester are rocketing by 7.5 per cent a year – the third highest rise of any UK city. What has caused this?
There’s many reasons: lower mortgage interest rates, lack of housing supply, with many London landlords and property investors attracted to cheaper homes to rent out locally and these account now for over 20% of total property sales.
Those halcyon days of 2015 – 2016 may well be beginning to fade for Leicester City fans with Claudio Ranieri dispatched shortly the next season. He did though put the Foxes on the map and, believe it or not, actually led to a property price surge in the city centre.
It’s true.
Land Registry figures don’t lie.
Almost two years ago, the most expensive property within commuting distance was in a village called Kirby Muxloe, priced at just short of £6 million. That was atypical though as that location had an average price of £400,000 in 2016.
It is interesting to see what has happened to the Leicester property market from 2016 to 2018.This won’t surprise you to find out that property prices in and around Leicester continue to rise.
Semi-detached properties make up the majority of sales year on year and they now sell for an average of £186,236 when in the Premier League win year, they sold for £166,417, or a £20,000 capital increase.
Terraced homes, the second biggest seller, have also seen a slightly bigger increase from £134,760 in 2016 to £155,738 now.
The biggest capital increase though has occurred with detached properties, which sold own average for £275,098 and now fetching £303,559 – an increase of over £28,000.
So in Leicester – is it a feelgood factor fuelling price growth? Increased tourism and city centre footfall due to football? Is the club’s rise attracting investors?
What we are wondering about though, indeed pondering, is what impact a football team’s success has on the property market.
You know that a school’s reputation affects property prices, but does a resurgent football club too?
So, our property top tip for you all today is: yes, look for good schools, proximity to transport links, a Waitrose etc, but perhaps the new price barometer is football.
Leicester’s unexpected championship win led to incredible property price growth, which shows little sign of abating. Sales figures remain healthy too – with 43% of property up for sale locally being sold or under offer.
Perhaps now, we will see east Manchester, the home of Premier League leaders and likely winners, Man City, have inexorable surges: along with Wolverhampton, Wigan Athletic and Luton Town?
Perhaps it’s time for investors and homeowners to up sticks and move to one of those?
We would prefer though to stick to Leicester and entrust Claude Puel to oversee another good season this year, with property prices rising along with the team.
We’ve no doubt either that Richard III’s inscribed grave would also approve:
Loyaulte me lie (loyalty binds me)
If you’d like to know more about LE property prices, are looking for property investment opportunities or even looking to sell a potential property investment/site in the Leicester region, I would love to hear from you.