Carter Oliver - Magazine - Page 5
RESIDENTIAL MARKET HOLDING FIRM
On the residential side, Leicestershire’s housing market has remained
stable and is showing modest growth. In Leicester itself, average
house prices have risen slightly year-on-year, with new-build
properties in particular attracting higher prices. These new homes
are now selling at an average price of over £350,000, up by around 5%
from the previous year. Rental prices are also on the rise. In early 2025,
average rents in Leicester approached the £1,000 per month mark—
an increase of more than 10% compared with 12 months earlier. This
signals a buoyant lettings market, particularly attractive to landlords
and buy-to-let investors. Much of this momentum is driven by the
city’s strong local economy, large student population, and continued
urban development.
REGENERATION AND INFRASTRUCTURE BOOSTS
Leicestershire is currently benefitting from several ambitious
regeneration projects. In Leicester city centre, a multi-million-pound
investment is transforming public spaces, revamping the historic
market area, and improving pedestrian access. These improvements
are making the city more attractive to both residents and visitors,
which has a knock-on effect on local property values. Beyond
Leicester, plans for a significant new residential development near
East Midlands Airport could bring over 4,000 new homes to the
region. This long-term project aims to meet rising housing demand
and support local population growth in the coming decades.
Improved infrastructure—particularly around transport and public
spaces—is making the area more appealing for families and
professionals alike.
SUPPORTIVE NATIONAL POLICY
At a national level, government housing policies are starting to have
a local impact. The current administration’s pledge to build 1.5 million
homes over five years is already influencing market behaviour, with
construction firms and materials suppliers ramping up to meet
anticipated demand. Notably, this has attracted increased investment
into the construction supply chain, which bodes well for future
housing delivery. Meanwhile, falling interest rates are helping to
ease mortgage affordability pressures. With further rate reductions
expected, more buyers may be encouraged to enter the market,
giving both the new-build and resale sectors a boost.
DEMOGRAPHICS AND DEMAND
Leicester’s population continues to grow steadily, and projections
suggest it will surpass 600,000 by the mid-2030s. This growth is
driving continued demand for housing of all types—from student
accommodation to family homes. The city’s central location and
strong transport links make it a natural hub for commuters working in
neighbouring regions.
ENVIRONMENTAL IMPROVEMENTS
Sustainability and quality of life are also playing a part. Environmental
projects, such as rewilding schemes in areas like Market Harborough,
are helping to improve biodiversity and provide valuable green space
for local communities. These efforts enhance the liveability of the
region, adding another layer of appeal for property buyers.
In summary, Leicestershire offers a balanced and optimistic picture.
With a strong economic foundation, growing population, active
development pipeline and clear government support, the county is
well-placed for sustained property market growth through 2025 and
beyond.
LIFESTYLE MAGAZINE
5
