Leicester continues to attract landlords seeking reliable rental income, strong yields, and a growing tenant population. With its combination of affordable property prices, two major universities, and excellent transport links, it’s no surprise that this East Midlands city remains a hotspot for buy-to-let in 2025.
At Barkers Leicester, we work with new and experienced investors to pinpoint the best locations, property types, and strategies for long-term success. Here’s our round-up of the most promising buy-to-let areas in Leicester this year.
Why Leicester stands out
As a city, Leicester has a lot going for it:
- A young, growing population
- Large student community from the University of Leicester and De Montfort University
- Fast links to London, Nottingham and Birmingham via rail and road
- Strong rental demand across all property types
These factors make Leicester an attractive place to invest, particularly for landlords looking for a mix of rental income and future growth.
Best areas to invest in 2025
Clarendon Park
This leafy, sought-after suburb is always popular with students and young professionals. Close to the University of Leicester and the city centre, Clarendon Park offers strong yields and consistent occupancy rates. Expect to pay a little more for property here — but also to see fewer voids.
West End / Narborough Road
Often described as one of the city’s most vibrant communities, this area attracts a mix of students, sharers and young families. It’s ideal for landlords seeking HMOs or multi-let opportunities. Narborough Road is also one of the longest roads of independent businesses in the UK, adding to the local buzz.
Highfields
For landlords looking for value and yield, Highfields is worth a closer look. Just south-east of the city centre, this area has traditionally offered affordable prices with above-average rental returns. Popular with families and professionals, it’s seeing increasing attention from investors.
City Centre
Leicester’s compact city centre is home to a mix of modern flats and period conversions, ideal for professional tenants. Flats here tend to let quickly, and with many students staying on in the city after graduation, tenant demand remains strong.
Aylestone and Knighton
Both areas offer a good mix of properties at accessible prices. Knighton is especially appealing to families, while Aylestone offers investment potential thanks to its proximity to both the city and the motorway network. Yields are steady and demand is strong for well-presented homes.
Property types in demand
In Leicester’s current rental market, the following property types are delivering strong performance:
- 2- and 3-bed terraced houses in West End or Highfields
- Flats and apartments in the city centre for professionals
- Student HMOs near Clarendon Park or Narborough Road
- Family homes in Knighton or Aylestone
Choosing the right property type for your ideal tenant is key — and that’s where local insight matters.
Yields to expect in 2025
Here’s what Leicester landlords are seeing in terms of typical gross yields:
- Student lets / HMOs: 7% to 9%
- City centre flats: 5% to 6%
- Terraced homes in Highfields/West End: 6% to 7%
- Suburban family homes: 4% to 5.5%
While yields are important, don’t forget about capital growth potential and tenant quality – both strong in Leicester.
What new investors should consider
Before you buy:
- Check local licensing and planning rules, especially for HMOs
- Ensure EPC ratings meet minimum requirements
- Research the tenant profile in your target area
- Factor in void periods and maintenance costs
Working with a local letting expert means you won’t miss these important details – and can invest with confidence.
Why invest with Barkers Leicester?
We’ve been helping Leicester landlords make informed, profitable choices for years. Our services include:
- Tailored buy-to-let advice based on your budget and goals
- Area and yield analysis to guide your property search
- Full letting and property management services
- Access to off-market opportunities
Whether you’re investing in a flat, terrace or HMO, we’ll make sure your investment works harder for you.
Ready to get started?
If you’re considering buy-to-let in Leicester this year, we’d love to help you plan your next move. From valuations to full portfolio planning, we’ll support you every step of the way.
Book your landlord investment consultation with Barkers Leicester.
