Why Should You Look To Invest In Leicester In 2018?
6th January 2018
Leicester has come 9th out of 10 of the best places to purchase a Buy-To-Let property in 2018, according to The Property Hub; with eye-wateringly unachievable property prices in London, it is no wonder savvy investors are looking to the North to invest their money. The Northern Powerhouse is really starting to bear its fruits and this is starting to help distribute some of the wealth from the South. However, we're focussing today on Leicester and why it is one of the best places to invest your invest your money in 2018.
Leicester has made the cut because of several reasons;
- It has a larger population than Nottingham (who have been a wealth-trap for a long time, providing fantastic yields and benefitting from rapidly increasing property prices - read our article about why this is going to be a problem come 2020) and also boasts a massively multicultural community, especially in Belgrave, Rushey Mead, along the Golden Mile and in Highfields which really eliminates cultural barriers that may be faced in other parts of the country.
- Leicester is one of the "Greater cities" in the East Midlands, according to Eurostat, a Directorate-General of the European Commission whose main responsibilities are to provide and source statistical information for and about EU institutions and members. It goes on to mention the numerous household brands whose headquarters are located in Leicester and Leicestershire, such as Next Plc, Caterpillar, Bloor Homes, Dunelm and Barratt Developments (and Harry Albert Group). As such, Leicester attracts professionals from across the country. In fact, what we're finding is that more and more people are moving out of larger cities like Birmingham (though Birmingham is also becoming an increasingly popular area to live) and London to move to Leicester because it's more affordable and presents better opportunities relative to the general cost of living.
- Leicester is home to two of the world's best universities; Leicester University and De Montfort University. DMU recently earned Gold in the Teaching Excellence Framework whilst Leicester University has changed the world with their groundbreaking research which includes the discovery of DNA fingerprinting. Leicester has always boasted a massive student population, not only because of our fantastic educational providers but also because of our sizzling nightlife, fantastic range of shops and activities throughout the city and with Leicester being so multi-cultural, nobody ever feels too far from home.
- We're 9th in the PWC Good Growth Index, boasting low levels of unemployment and rapidly improving city life, it is clear why Leicester is the place to be if you're looking for work or looking to invest.
- Leicester has the biggest economy in the East Midlands, the number of jobless seeking work has fallen from 22'000 in 2008 to just 8000 today and is a key manufacturing hotspot.
It is clear that Leicester has a lot to offer people who are looking to buy and rent, but what does this mean for Buy to Let investors?
Well, the main thing for BTL investors to bear in mind is that Leicester has seen a 15% decline in the speed in which homes were sold in 2017 as more and more people choose to rent. Leicester still has a way to go before it meets the expected fate of Birmingham and other rapidly increasing property value areas (where property prices are expected to judder to a halt).
What To Watch Out For In 2018