How to research your chosen area I The Property Fox Leicester

Firstly, we will start by looking at the average house price in Leicestershire as a whole and then break it down to those within Leicester city itself. 

 

"Figures from the Office for National Statistics have shown that the average property value in Leicestershire was £176,895 in April 2014 – an increase of 9% compared to the same month in 2013." 

 

"The average house price in Nottingham is now £164,709 – up by 10 per cent over the same period. Meanwhile, research conducted by Hometrack shows that city-dwellers are throwing away an average of £14,500 on each property they live in over the years because of bad design decisions." 

 

So it would appear that the average house price in Leicestershire is lower than surrounding cities (e.g Leicester) and nationally (in line with national trend), while also growing at a slower rate (again, in line with national trend). So if you believe these figures to be accurate it appears there could be potential for an investment opportunity.  

 

However, upon further investigation, it is clear there are substantial differences between the city (Leicester) and county (Leicestershire). 

"The city of Leicester has shown one of the greatest house price increases in the UK over the last decade." 

"House prices in Leicester have risen by 29% since 2004 to an average of £163,150 in April 2014." 

 

"Figures from the Office for National Statistics have shown that house prices in Leicester increased by 10% in 2013 compared to a UK-wide rise of 8%. This shows that an investment into the right area could result in very attractive returns." 

 

The figures clearly show that Leicestershire houses have increased by less than half the increase seen in Leicester and show a decline between 2009 (-1%) and 2013 (0%). It is also interesting to note that since 2009, Leicester has experienced positive price growth every year; as such an investment into this city would appear as a much stronger investment opportunity. So if you were looking for future opportunities for house price growth in Leicestershire, Leicester appears as a better opportunity than the county as a whole. 

 

Now we turn to look at those living within the city of Leicester itself and the figures are very interesting. 

 

"House prices rose by 10% in 2013 compared to a UK-wide rise of 8%. This shows that an investment into the right area could result in very attractive returns." 

 

As we can see, house prices have risen each year since 2011 and at a higher percentage than the surrounding city and county. Leicester has traditionally been known as an industrial city and not a mining one but it may be that this is just where the opportunities lie. However, with house price growth slowing since 2012 it may be prudent to see if this trend will continue. 

 

"According to the Land Registry, average house prices within Leicester's city boundaries stood at £166,304 in March 2014 – an increase of 1% compared to the same month in 2013." 

 

The figures for Leicester show a decline between 2011 and 2013: four consecutive negative growth quarters. This is not mentioned in the article but it appears to be due to declines between 2011 and 2012 (-5%) and falls of 1% each year since (2013 -1%; 2014 0%). So while Leicester was shown as an attractive proposition earlier, it may be that this city is not quite there yet; though the price increases in the city compared to the county reduce this risk. 

 

"According to Hometrack's house price index, home buyers in Leicester are investing £15,700 more than they need when buying a property." 

We can see Leicester is highlighted as an expensive location for people looking to buy/sell property in Leicestershire. This may be a consideration when looking to buy property in the city. 

"In contrast, buyers in South Leicestershire are getting more value for money." 

 

Upon further investigation, it was found that only Blaby showed positive growth between 2009 and 2013 (0%) while both Harborough (-1%) and Hinckley & Bosworth (-5%) showed declines. The figures for South Leicestershire show a decline in house prices between 2009 and 2013: negative growth four years out of five. This may not be the ideal investment opportunity that this article portrayed it as; making Leicester look like a better option. 

 

"Hometrack's House Price Index also showed that homes in South Leicestershire are selling for 4.5% less than their market value, compared to 6.6% in Leicester." 

 

This is quite simply not true. The index shows that houses are selling for an average of 3.7% less than the market rate in South Leicestershire while houses in Leicester are selling at 5.2% under the market rate. On this basis, Leicester is cheaper than South Leicestershire to buy a house in. 

"The suburbs of south and west Leicester are far more attractive for buyers wanting quick access to the city centre." 

 

Looking at the facts it appears that people looking to buy property in Leicestershire should look into buying property in south Leicester as opposed to the suburbs. This is since house prices are on average 3.7% less than the market rate.  

 

Though this does not mean that northern parts of Leicester or South Leicestershire (i.e., Blaby) do not offer investment opportunities; it just means that they may be better for people who are looking to buy property in Leicestershire for other reasons. 

 

"The average house price of a terraced home in Leicester city centre is £234,040 – 9.4% more than this time last year." 

This says that the average house price of a terraced home in Leicester is £234,04 which is 9.4% more than last year. This value comes from a 2013 study done by the Leicester Mercury which used information from the Land Registry to determine this figure. 

 

"A three-bedroom semi-detached house in Thurmaston costs on average £168,351 – 5.3% less than this time last year." 

This information is based on the figures provided by the House Price Index which all goes back to last year's data. 

 

"But a three-bedroom semi-detached house in Blaby costs £80,830 less than this time last year." 

 

This information was taken from an article by Leicester Mercury about how property prices are increasing across Leicestershire. This figure however is based on an average, which may not be completely accurate. 

"House prices across Leicestershire have risen by 1.8% in the past year." 

 

This information was taken from the House Price Index and is another example of last year's data being used as a source of reference to determine current market conditions. 

 

"The average house price in the county is £155,081." 

 

This figure comes from an article by Leicester Mercury which used information provided by the Land Registry to determine this. This value may not be up-to-date as it is based on last year's data. 

 

Leicester City Council has released a paper outlining its plans to build affordable homes in the south and west of the city. 

This information is taken from a Leicester Mercury article and is therefore based on last year's data. This time next year it may be completely different as no up-to-date figures were available for this article. 

 

Regardless, what do you think? If you want to buy property in South Leicestershire that is the best investment option, but it does depend on your situation. 

 

There are many reasons why you may want to buy property in South Leicestershire; depending on what they are Leicester may or may not be a better place for you to look into buying property. However, if you are thinking of taking the plunge and investing in property, it is worth doing your research on Leicester and South Leicestershire before deciding on where to buy. 

 

What do you think? If you want to buy a rural property or more modern properties look into Blaby as opposed to South Leicestershire as those types of homes are cheaper to buy there. 

 

If you want to buy affordable homes then definitely look into South Leicestershire as they are more affordable than most other parts of Leicester. 

Whatever your situation, it is important that you research the area you are looking to invest in before doing so.  

 

Whilst this article may provide some insight, it is not sufficient to base your entire research on. 

 

At the end of the day, it comes down to personal preference and what type of property you want to buy and where you see yourself living in Leicestershire. However if we were to offer one piece of advice, look into all areas thoroughly before deciding as it may save you thousands of pounds in the long run. 

 

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