Introduction to Buy to Let in Leicester
If you’re considering expanding your portfolio, buy to let in Leicester presents an enticing opportunity. At 365 Invest, we see Leicester as one of the UK’s most promising cities for rental investment. With affordability, strong rental demand, a diverse economy, and large-scale regeneration underway, the case for buy to let in Leicester is compelling. This guide walks you through the key factors, demographics, transport, economic drivers, tourism, student markets, and the city’s future, while highlighting our developments like The Old Ground and Bosworth House.
Our Featured Developments: The Old Ground & Bosworth House
At 365 Invest, we focus on sourcing the most viable opportunities that combine strategic location, developer credibility, and future demand. Two of our top developments in Leicester are The Old Ground and Bosworth House.
The Old Ground is located close to the former Filbert Street stadium site and is positioned perfectly for students, young professionals, and NHS staff due to its proximity to both De Montfort and the University of Leicester, as well as Leicester Royal Infirmary. With prices starting from £121,000, this project offers modern studios, one- and two-bedroom apartments and delivers gross rental yields up to 6%. Key sustainability features such as photovoltaic panels and energy-efficient heating make this a future-proof investment.
Bosworth House is another exciting opportunity within the city centre, offering studio and one-bedroom apartments. Rental yields are expected to reach up to 10% net, which is exceptional for a city with such low entry prices. With prices starting from just a £5,000 deposit and completion projected for Q1 2026, Bosworth House provides an accessible yet high-performing asset for investors looking at buy to let in Leicester.
Student Population & Tourism Fuel Rental Demand
Leicester is home to two major universities, De Montfort University and the University of Leicester, and is within close reach of Loughborough University. The combined student population exceeds 60,000, with around 35,000 of them living in the city throughout the academic year. This large and consistent student presence ensures strong demand for HMOs, purpose-built student accommodation, and centrally located one-bedroom apartments.
Many students choose to remain in Leicester after graduation, taking up positions in local businesses or enrolling in postgraduate programs. That’s an important consideration for buy to let in Leicester, as it creates long-term tenants beyond the usual academic calendar.
Beyond education, Leicester has a lot to offer tourists and short-term visitors. Attractions like the King Richard III Visitor Centre, the National Space Centre, Leicester Cathedral, and Curve Theatre help attract a wide mix of domestic and international tourists each year. Major cultural events like Diwali on the Golden Mile, Caribbean Carnival, and regular street festivals add vibrancy to the city and support the local hospitality and short-let markets.
Transport & Connectivity: A Commuter’s Dream
Leicester benefits from excellent transport infrastructure, which directly enhances its appeal to renters. Trains from Leicester Railway Station reach London St Pancras in just over an hour, making the city a popular base for commuters working in the capital. Rail links to Birmingham, Nottingham, Sheffield, and Derby further expand the commuting and professional tenant pool.
By road, the M1 and M69 motorways provide direct access to the Midlands and northern regions, while East Midlands Airport is just a 30-minute drive away. Whether you’re targeting students, professionals, or remote-working tenants, Leicester’s connectivity is a key advantage in any buy to let in Leicester strategy.
Economic Growth & Regeneration
Leicester’s local economy is diverse and well-balanced. It has one of the highest employment rates in the region and is supported by strong private-sector investment. Household names like IBM, Next, and Santander have long-standing bases here, while newer sectors like creative tech and space research are growing rapidly.
Regeneration is playing a major role in shaping the city’s future. The Waterside regeneration project, estimated at around £300 million, is revitalising brownfield land near the city centre, creating new homes, commercial spaces, and recreational areas. Leicester Railway Station is undergoing a £22 million upgrade to improve passenger experience and stimulate nearby residential developments. Combined with ongoing investments into Pioneer Park and Space Park Leicester, these projects are not only reshaping the landscape but also driving tenant demand for well-located homes.
Leicester has also been recognised in PwC’s Good Growth for Cities Index as one of the UK’s top regional performers, highlighting its strengths in affordability, work-life balance, and economic resilience.
Tourism, Culture & Quality of Life
Leicester’s appeal extends beyond economics:
- It’s a hub of multicultural celebration, from Diwali on the Golden Mile to Caribbean Carnivals.
- Sporting enthusiasm remains high: Leicester City FC, Leicester Tigers (Rugby), Leicester Riders (basketball), and county cricket, alongside the National Space Centre and cultural venues such as Curve theatre and De Montfort Hall all contribute to vibrant community life.
That cultural mix enhances Leicester’s profile as a desirable place to live, rent, and work.
Affordability and Yields: A Winning Balance
One of the biggest reasons investors are drawn to buy to let in Leicester is its relative affordability compared to other major cities. Average house prices in Leicester are around £227,800, well below the UK national average, yet rental yields remain strong. City centre yields can hit 5%, with outer areas like LE4 and LE5 reaching around 4.3%.
Our developments outperform these figures. The Old Ground offers gross yields up to 6%, and Bosworth House projects up to 10% net return. For investors seeking a combination of value and income, Leicester remains one of the most viable locations in the UK market.
Location Insights and Demographic Trends
Different areas of Leicester appeal to different tenant types. The city centre (LE1) is ideal for students, young professionals, and graduates looking for walkable commutes. Suburbs like LE2 and LE3 attract families and professionals seeking quieter surroundings but still within easy reach of amenities. Northern areas like LE4 and LE5 offer a mix of affordability and access to transport links, making them popular with both landlords and tenants.
Leicester’s population is growing, expected to rise from 566,000 to well over 600,000 by 2035. This growth is driven by a mix of domestic migration, international arrivals, and a young, highly mobile workforce. For long-term investors, this trend underpins strong rental demand and future capital growth.
Future Outlook: What Lies Ahead
Leicester’s long‑term trajectory remains strong:
- The city council forecasts population growth from ~566,000 now to 600,000+ by 2035 , underpinning housing demand.
- Student numbers continue to expand, deepening demand for quality rental accommodation.
- Infrastructure investments, including redevelopment of city spaces and station enhancements, are set to improve quality of life and market attractiveness.
Projects like Bosworth House (completion projected Q1 2026) and The Old Ground (Q3 2025) align with these trends .
Conclusion to Buy to Let in Leicester
For investors who value solid yields, capital appreciation, and confident market fundamentals, buy to let in Leicester is a strong choice. A powerful blend of economic growth, infrastructure investment, student and cultural demand, and affordability makes this city a long‑term performer.
Our developments, The Old Ground and Bosworth House, are bespoke opportunities tailored to capture Leicester’s market drivers. With 365 Invest covering the full investment lifecycle, your entry can be both strategic and seamless.
If you’re considering buy to let in Leicester, get in touch. We’re ready to help you select the right property, finance it competitively, and manage it effectively for lasting returns.
* Current available developments last updated July 2025.
