Jump to content

Where to invest in Leicester city?


Recommended Posts

Hi there,

I'm looking for advice/ suggestions on general areas to invest within Leicester city center.

 

 

Currently researching 2 bed flats, with the primary aim being yield (net 6%+); and I'm keen to get a steer on which areas I should be targeting/ avoiding.

 

Suggestions and input very much welcome!

Anthony Gosling
WG Estates | Property Investor
www.wgestatesuk.com
07478572163

Link to post
  • 4 weeks later...

Hi gosling12,

 

I am interested to know if you have made any progress or had any useful input?

I am also looking into Leicester for investment opportunities and I am about to commence the research phase so any tips would be greatly appreciated. 

Once I get into the research and visit the area again I will keep you updated on anything I learn.

All the best,

Link to post

Hi Thomas,

Nothing from this forum, however I actually met with a chap who lived in Leicester (LE1) for a number of years.

 

He directed me to Clarendon Park- apparently a nicer part of central leicester (prices reflect this from the research ive done so far) and popular with young professionals. The Cultural Quarter is supposed to be desirable too.

 

Yes please do keep me posted, would be good to hear what you find...

 

Regards

Anthony Gosling
WG Estates | Property Investor
www.wgestatesuk.com
07478572163

Link to post

Hi gents,

just seen your posts. I am looking in the Nottingham / Leicester area for the properties which needs adding value to. May I ask why you have chosen the Leicester?

I live in London and this falls to the driving distance, easier to do the viewings and check on builders. Would be interested to hear your reasons.

Thanks

Michael

Link to post

Hi all,

Apologies I didn't pick this up sooner. I'm from Leicester originally and go back there regularly for family and scouting for potential new BTLs.

 

Clarendon park area is definitely the moneyed area in the city due to the large park, the university nearby and the large Victorian avenues and houses. I don't think you'll be able to extract much value there as a lot of the houses that can be converted have already been so for students. 

 

If you're evee looking to do a HMO, LCC have an article 4 in place I believe so you may find some hurdles to achieving that.

 

You could look at flats/apartments over near the hospital which is towards the SW of the city. You also have houses around here which are generally terraced and have a mix of people from all ages and ethnic backgrounds. Leicester is one of the first cities where there is no overall dominating culture, so you have a mix of African Caribbean, Hindu, Sikh, Islamic/Muslim, Jewish and indigenous white populations. You will find loosely that each occupies certain areas .e.g Hindu and Sikh to the north, Afro-caribbean the East, Jewish to the South East, Islamic on the East (Bangladesh and Sudanese) and West(Pakistan and SE Asian), indigenous dotted throughout and to the South.

 

Just south of that you have the old Filbert st football ground and the newer home of the triumphant Leicester City football club. It would be worth keeping an eye on developments around this area as LCFC owners are due to put in planning permission for major developments around the ground, possibly including a hotel, leisure complex and shopping. Depending upon on what gets approved will help to influence prices near here.

 

Moving to the NW you have narborough road and the Lee and StNicholas roundabout areas. Narborough Rd is a mix of semis and terraced houses. Again a lot of students here and SEAsian families. There can be some potential good buys, but it's on a road by road basis.

 

Lee circle is a better location, you're very nr the centre. Railway is on other side of the city but you can walk it in 15-20 mins. You're also close by the bus station and Highcross which is one of the main shopping areas.

 

Across the other side of the city (East) Nr the railway station is a bit of a lottery. Right near I would advise against, been various drug problems around there. Some of the factories have been converted into flats/apartments, but you're also near a lot of the late night chicken shops and small clubs so night time can be a bit noisy - it's also one of the main drags out of town so plenty of traffic through the day and mid to late evening at weekends.

 

Further down London road you have the prison. There are some blocks around there which house LDA tenants, so you may get some joy depending upon your appetite.

 

To the very north, you have Melton road (the golden mile). There's lots of potential along here, it has the main Hindu and Sikh populations which bring their traditions and the annual Divali festival is one of the biggest outside of India. There are a good mix of terraced, semi and converted houses. 

 

I look at Leicester because it has good connections to LDN for road and rail. It has the M69 so you can drop down to the bottom of the M6 for Coventry and Birmingham. To the north you can hit the A50 just before Nottingham and be across to Derby and East Mids airport.

 

It has 3 hospitals although the Trust that operates them is massively in debt and there have been problems at each of them. However, Glenfield is world class for heart operations.

 

There are two unis. Leicester is on the East side and is world renowned for Space and Medical sciences - Dr Alan Jefferies pioneered DNA fingerprinting there. On the west of the city you have DeMonfort uni which is more business and arts based.

 

I've noticed on RM quite a few flats coming on in the studenty areas which makes me wonder if some BTLetters aren't generating the income they hoped there.

 

There are a lot estates on the peripheral city boundary in all directions. Avoid St Mathews, St Marks, Saffron Lane and Eyres Monsell for sure. Evington Road can be a bit dodgy for shootings and is the main red-light area at the end nearer the city.

 

Any queries, ask away.

Link to post
19 hours ago, blabyboy said:

Hi all,

Apologies I didn't pick this up sooner. I'm from Leicester originally and go back there regularly for family and scouting for potential new BTLs.

 

Clarendon park area is definitely the moneyed area in the city due to the large park, the university nearby and the large Victorian avenues and houses. I don't think you'll be able to extract much value there as a lot of the houses that can be converted have already been so for students. 

 

If you're evee looking to do a HMO, LCC have an article 4 in place I believe so you may find some hurdles to achieving that.

 

You could look at flats/apartments over near the hospital which is towards the SW of the city. You also have houses around here which are generally terraced and have a mix of people from all ages and ethnic backgrounds. Leicester is one of the first cities where there is no overall dominating culture, so you have a mix of African Caribbean, Hindu, Sikh, Islamic/Muslim, Jewish and indigenous white populations. You will find loosely that each occupies certain areas .e.g Hindu and Sikh to the north, Afro-caribbean the East, Jewish to the South East, Islamic on the East (Bangladesh and Sudanese) and West(Pakistan and SE Asian), indigenous dotted throughout and to the South.

 

Just south of that you have the old Filbert st football ground and the newer home of the triumphant Leicester City football club. It would be worth keeping an eye on developments around this area as LCFC owners are due to put in planning permission for major developments around the ground, possibly including a hotel, leisure complex and shopping. Depending upon on what gets approved will help to influence prices near here.

 

Moving to the NW you have narborough road and the Lee and StNicholas roundabout areas. Narborough Rd is a mix of semis and terraced houses. Again a lot of students here and SEAsian families. There can be some potential good buys, but it's on a road by road basis.

 

Lee circle is a better location, you're very nr the centre. Railway is on other side of the city but you can walk it in 15-20 mins. You're also close by the bus station and Highcross which is one of the main shopping areas.

 

Across the other side of the city (East) Nr the railway station is a bit of a lottery. Right near I would advise against, been various drug problems around there. Some of the factories have been converted into flats/apartments, but you're also near a lot of the late night chicken shops and small clubs so night time can be a bit noisy - it's also one of the main drags out of town so plenty of traffic through the day and mid to late evening at weekends.

 

Further down London road you have the prison. There are some blocks around there which house LDA tenants, so you may get some joy depending upon your appetite.

 

To the very north, you have Melton road (the golden mile). There's lots of potential along here, it has the main Hindu and Sikh populations which bring their traditions and the annual Divali festival is one of the biggest outside of India. There are a good mix of terraced, semi and converted houses. 

 

I look at Leicester because it has good connections to LDN for road and rail. It has the M69 so you can drop down to the bottom of the M6 for Coventry and Birmingham. To the north you can hit the A50 just before Nottingham and be across to Derby and East Mids airport.

 

It has 3 hospitals although the Trust that operates them is massively in debt and there have been problems at each of them. However, Glenfield is world class for heart operations.

 

There are two unis. Leicester is on the East side and is world renowned for Space and Medical sciences - Dr Alan Jefferies pioneered DNA fingerprinting there. On the west of the city you have DeMonfort uni which is more business and arts based.

 

I've noticed on RM quite a few flats coming on in the studenty areas which makes me wonder if some BTLetters aren't generating the income they hoped there.

 

There are a lot estates on the peripheral city boundary in all directions. Avoid St Mathews, St Marks, Saffron Lane and Eyres Monsell for sure. Evington Road can be a bit dodgy for shootings and is the main red-light area at the end nearer the city.

 

Any queries, ask away.

 

Blabyboy,
Firstly thanks for such a comprehensive info-packed response on this- its very much appreciated.

Just a few queries from me:

 

1. Regarding the Clarendon area, from the info you provided, it would seem that there is a mix of both student population and professionals, rather than one predominant group- have I understood that correctly? Just trying to get a feel of potential tenant demographics

 

2. The three hospitals being run by the struggling trust you mentioned- does that include the royal infirmary?

 

3. Interested to know if there's a central business district in Leicester (i.e. a Canary Wharf equivalent - multinational corporates, banks, law firms, etc)?

 

4. You mention a general prevalence of terraced houses (in clarendon, near the hospital, st nicholas, narborough road, golden mile, etc)- with article 4 in place, any idea/insight on the strategies new investors are pursuing on these to extract maximum value? E.g. renting to families, converting to individual units, etc

 

5. Lastly, wondering how you've generally found investing in leicester from a personal perspective?

 

Anthony Gosling
WG Estates | Property Investor
www.wgestatesuk.com
07478572163

Link to post

Hi Goslingl12,

 

1. Yes. If you look here on gmaps (https://www.google.co.uk/maps/place/Leicester/@52.6148019,-1.1214257,15.37z/data=!4m5!3m4!1s0x487742ab49b76c73:0x9a151d2a6fb49cb8!8m2!3d52.6368778!4d-1.1397592)  you can see Clarendon Park and then to right, the Stoneygate area. So, the student population tend to be more to the left, and bordered by Victoria Rd in the North, Welford Rd to the West and Queens Rd to the East. As you move from West to East the student population tends to fall off as you move into Stoneygate. If you use Street View and move along Clarendon Park Rd and then down into Stoneygate you can see it more in the quality of the houses and the type of lettings and for sale boards. It also chimes with the fact that if you look to the North, Leicester Uni is just over the park.

 

2. Yes, the 'RLI' as it's known locally has had some bad press lately with a Doc getting struck off and then re-instated, and also performing not so well in the league tables. That said, I've never had a bad experience there and always been treated well. https://www.google.co.uk/maps/place/Leicester/@52.6252697,-1.1378691,16.37z/data=!4m5!3m4!1s0x487742ab49b76c73:0x9a151d2a6fb49cb8!8m2!3d52.6368778!4d-1.1397592  As you look at it, there are lots of terraced houses just to the South, but the main area why you might get joy is just across the Soar navigation following Upperton Rd and eventually onto Narborough Rd which I mentioned previously. That area, you're more looking at families and hospital workers and students for DeMonfort Uni which is just to the North - it is a real mix.

 

3. Ok, the law firms and professional services are centred around the New Walk area (https://www.google.co.uk/maps/place/Leicester/@52.629063,-1.1267586,16.37z/data=!4m5!3m4!1s0x487742ab49b76c73:0x9a151d2a6fb49cb8!8m2!3d52.6368778!4d-1.1397592).  This area (https://www.google.co.uk/maps/place/Leicester/@52.6356388,-1.1344809,16.37z/data=!4m5!3m4!1s0x487742ab49b76c73:0x9a151d2a6fb49cb8!8m2!3d52.6368778!4d-1.1397592) is where a lot of the city's shops are and you get the High st banks. You have Europe's largest covered Market here, plus a fish market and fruit & veg market. You've got Highcross slightly to the North, which is full of your usual chain shops and has a cinema. To the North of there over Vaughan Way and Burleys Way you have lots of small factories and more industrial activity - a lot of businesses have taken over the factories that used to be for clothing and dyers. From the centre out to the Guildhall in the West is where you have some smaller niche shops and the architecture is more olde worlde. A lot of small businesses around here. To the East you have the Curve and a bit of an Arts area and then on into another retail park.

 

4. That is the £64K question! So I would think the key groups to go for would be either students, but obviously with the changes to how a HMO is defined that means only two at a time, or looking for places that you can sell to young professionals either one or two at a time.You could go for families over on the West near Narborough Rd and also up along the A607 (Melton Rd). You've got various new developments available, and still being built around Conduit St which is just behind the Railway station (https://www.google.co.uk/maps/place/Leicester/@52.6310353,-1.1233179,16.37z/data=!4m5!3m4!1s0x487742ab49b76c73:0x9a151d2a6fb49cb8!8m2!3d52.6368778!4d-1.1397592) Street View will help you to get an initial impression, but a lot of the imagery is from 2017 and stuff that is under construction is now there.

 

There is at least one wrinkle for the student idea, which is that DeMonfort and Leicester seem to have been building more halls over the last few years along Oxford Street and surrounding areas (https://www.google.co.uk/maps/place/Leicester/@52.6304066,-1.1361936,17.37z/data=!4m5!3m4!1s0x487742ab49b76c73:0x9a151d2a6fb49cb8!8m2!3d52.6368778!4d-1.1397592

 

If you look on RM at the mo, there appears to be a few flats going that have started at >100K, but have now dropped to around 90K so it does look as if perhaps some BTL's are being squeezed. Though I could not say for sure it's down to the Uni's coming more into that area alone.

 

5. We're still looking to be honest. We're looking in a corridor from Leicester -> Coventry -> Birmingham. We have two properties south of the city centre so it's more established families.

Link to post

Blabyboy,
Thanks once again for the detail here, very helpful. Yes had similar thoughts regarding maximum value strategy (i.e. x2 tenants), but always helpful to validate with another fellow Investor's opinion!

 

Interesting observation re RM prices seemingly being squeezed downwards, will have a look at the demographics on the ground will I next go up to research.

 

All the best with your journey, and should you need any info/feedback do let me know.

 

Kind
Regards

Anthony Gosling
WG Estates | Property Investor
www.wgestatesuk.com
07478572163

Link to post
  • 3 months later...

Hi there,

 

Also looking at Leicester, have worked here in the past and think it meets nice balance between proximity to London (where I am based) and price.

 

Any advice on the area would be appreciated.

 

Im looking at 2 bed ish around city centre, near the curve theatre etc

 

Best,

 

Robert Colvin

Link to post

Funnily enough, it didn't make it into Rob & Rob's top 5 predictions for 2019 a few weeks back. In terms of yield and capital growth, a very good prospect (depending on location choice of course) and good value.


The only thing I feel it's missing/ awaiting is the largescale regeneration we're seeing in Liverpool & Manchester at the moment. I'm sure it's turn will come soon...

Anthony Gosling
WG Estates | Property Investor
www.wgestatesuk.com
07478572163

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...