Since June 2020, the average UK home has increased in value by 20%, adding around £55,800. But while national headlines talk about gains in the North West and losses in London, what does this mean for homeowners in Leicester and the wider East Midlands?

Headline Figures:

• Across the UK, average property values have risen by 20% since the pandemic, adding £55,800 to the average home.

• In the East Midlands, 4% of homes have increased in value by 50% or more, those properties gained an average of £114,300.

• Leicester and surrounding towns have seen steady, consistent growth, making the area a reliable place to own a home.

• Nationally, one million homes have gained over 50% in value, but the biggest surges are concentrated in northern England and Wales.

• In contrast, London has struggled, with 13% of homes losing 5% or more in value.

What’s Happening in the East Midlands?

While the East Midlands isn’t topping the charts for the highest percentage increases, it remains one of the most stable and promising regions for property growth.

Homeowners here, including in Leicester, Loughborough, and nearby towns, have benefitted from gradual, sustainable value increases over the last five years. Properties that have seen more substantial gains (50% or more) have risen by an average of £114,300. That’s a significant return, especially in areas where house prices are still relatively affordable compared to the South.

Leicester, in particular, has become increasingly attractive to buyers looking for more space, better value, and strong transport links. With a growing population, a large student community, and an expanding tech and healthcare sector, demand for homes has remained consistent.

Why Has the Region Performed Well?

The property market in Leicester and the East Midlands has been supported by several key factors:

• Affordability: Compared to southern cities, homes in the East Midlands offer better value for money.

• Connectivity: Excellent rail and road links make cities like Leicester viable for both local professionals and London commuters.

• Lifestyle Appeal: A mix of urban amenities, green spaces, and family-friendly neighbourhoods has drawn in both first-time buyers and investors.

• Stable Rental Yields: For landlords, Leicester has remained a popular choice due to its strong rental demand and healthy yields.

How Does This Compare to Other Regions?

While places like the North West and South Wales have seen sharper percentage increases in house prices, that growth often came from a lower starting point. In contrast, the East Midlands, and particularly cities like Leicester, have seen more consistent year-on-year rises without the volatility experienced in some other markets.

London has had a tough time. Since 2020, many central boroughs have actually seen falling property values, with 13% of homes losing more than 5% of their value. Meanwhile, the South of England has seen more modest gains, often less than 20%, due to already high property prices and affordability constraints.

Local Success Stories

Some East Midlands towns have outperformed even the regional average. Bolsover, for example, saw 9% of homes increase in value by 50% or more, with an average gain of £55,500.

This highlights how demand is shifting across smaller towns with good infrastructure and relatively lower house prices, a pattern also seen in parts of Leicestershire.

What’s Next for Leicester?

With more homes on the market than at any time in the last seven years, competition among sellers is rising. If you're considering selling, it’s important to understand what similar properties in your area are selling for, not just what they’re listed at.

Leicester remains one of the UK’s most balanced and appealing housing markets. Whether you’re a homeowner considering a move or a buyer looking to step onto the ladder, now’s a great time to explore how your property’s value has changed.

Looking to buy, sell, or take your first step onto the property ladder? Call our friendly team on 0116 266 9977 and discover why so many in Leicester choose Seths.