Leicester’s student lettings market continues to be one of the most compelling opportunities for landlords in the East Midlands. With the University of Leicester and De Montfort University together drawing a combined student population of around 45,000, demand for well-located rental accommodation remains consistently strong heading into 2026.
Whether you hold a single HMO or manage a broader portfolio, understanding where that demand is concentrated — and what tenants are looking for right now — can make a significant difference to your yields and occupancy rates.
This guide from Barkers Leicester breaks down the key student neighbourhoods, what landlords should factor in, and how to position your property for the strongest possible returns this year.
Why Leicester’s student market stands out in 2026
Leicester regularly features among England’s higher-yielding rental cities, and the student sector is a meaningful driver of that performance. Average gross yields across popular student postcodes are tracking between 6% and 8% in 2026, with well-maintained HMOs in prime locations continuing to outperform general buy-to-let stock.
Supply hasn’t kept pace with demand in several key areas. Purpose-built student accommodation (PBSA) has grown in the city centre, but it hasn’t absorbed the full demand for affordable, flexible housing — particularly for second and third-year students who prefer to rent privately with friends.
That gap is where private landlords have a clear advantage.
The strongest areas for student lets in Leicester
Clarendon Park
Clarendon Park remains one of the most sought-after student neighbourhoods in the city. Sitting just south of the University of Leicester’s main campus on University Road, it offers a walkable commute that students consistently prioritise when searching for accommodation.
The area has a strong community feel, with independent cafés, restaurants and shops along Queens Road adding to its appeal. For landlords, this translates into low void periods and reliable demand from second and third-year undergraduates.
HMOs of three to five bedrooms perform particularly well here, though well-presented one- and two-bedroom flats are also in demand from postgraduate students and those preferring smaller households.
Highfields
Highfields sits to the south-east of the city centre and offers close proximity to both universities, making it attractive to a broad range of students. It’s one of Leicester’s more affordable areas for property acquisition, which supports stronger yield potential for landlords entering the market or reshaping their portfolio.
The neighbourhood has a diverse and well-established community, and its range of property types — from terraced houses to purpose-converted flats — gives landlords flexibility in how they structure their letting strategy.
Demand for HMOs in Highfields has remained firm, and the area’s relatively lower purchase prices compared to Clarendon Park mean entry costs are more accessible without significantly compromising on tenant demand.
Narborough Road
Narborough Road, running south-west from the city centre, has grown in popularity as a student corridor over recent years. Its mix of independent businesses, good transport links and proximity to De Montfort University’s campus makes it a natural draw for DMU students in particular.
One- and two-bedroom flats along and around Narborough Road appeal to students who want city-fringe living with easy access to campus and the city centre. For landlords, this area offers a mix of HMO and flat-based strategies depending on the specific property and location.
LE1 — the city centre postcode
The LE1 postcode covers the heart of Leicester city centre and is home to De Montfort University’s main campus as well as being a short distance from the University of Leicester. Demand here is strong, particularly from first-year students and those who prefer urban living close to lecture halls, the Curve theatre, Highcross shopping centre and Leicester’s vibrant food and cultural scene.
Flats — particularly one- and two-bedroom apartments — are the dominant property type, and yields can be attractive where purchase prices remain competitive relative to rental income. The continued regeneration of the city centre, including ongoing development around the Waterside area, is supporting long-term demand.
What landlords need to consider in 2026
HMO licensing and compliance
Any property rented to five or more people forming more than one household requires a mandatory HMO licence in England. Leicester City Council also operates additional licensing schemes in specific areas of the city, so landlords should verify whether their property falls within a designated zone before letting.
Staying on top of licensing requirements isn’t optional — penalties for non-compliance are significant, and licensing conditions directly affect how you manage and maintain your property.
Supply pressure and rental trends
Rents across Leicester’s student postcodes have continued to rise into 2026, driven by constrained supply and sustained demand. For landlords, this is broadly positive, but it also raises the importance of presenting well-maintained, properly equipped properties to attract and retain quality tenants.
Students are increasingly discerning. Fast broadband, energy efficiency, modern kitchens and bathrooms, and proximity to transport links all influence letting decisions.
Portfolio strategy — HMOs versus flats
There’s no single right answer for every landlord. HMOs typically generate higher gross income per property but carry greater management demands and compliance requirements. One- and two-bedroom flats offer simpler management and appeal to postgraduate and mature student tenants.
Barkers Leicester works with landlords across both strategies and can provide tailored advice based on your current portfolio and investment goals.
Making the most of Leicester’s student market
The fundamentals supporting Leicester student lets in 2026 are strong: a large, stable student population; a supply gap in key neighbourhoods; and yields that compare favourably with many other English cities.
The landlords who perform best are those who treat their student properties professionally — maintaining compliance, responding to tenant needs promptly, and keeping properties in genuinely good condition.
Barkers Leicester has deep local knowledge across Clarendon Park, Highfields, Narborough Road and LE1, and our lettings team understands the nuances of the student market in each area.
If you’re considering adding a student let to your portfolio or want to understand what your existing property could achieve in the current market, we’re here to help.
Get in touch with Barkers Leicester today to speak with a member of our lettings team about your property goals.
Ready to find out what your Leicester property is worth? Book a valuation with Barkers Leicester and get an accurate, up-to-date assessment from local experts who know the student market inside out.
