The Intermediary – May 2025 - Flipbook - Page 84
L O C A L FO C U S
Leicester
Each month, The Intermediary takes a close-up
look at the housing market in a specific region and
speaks to the experts supporting the area to find out
what makes their territory unique
Focus on ...
JESSICA O’CONNOR
is deputy editor at
The Intermediary
Leicester
s 2025 continues
at pace, Leicester’s
housing and
mortgage market
reflects both local
resilience and the
broader national uncertainty plaguing
the UK’s housing sector.
Following a period of intense
activity – partially influenced by
shiing tax incentives and economic
recalibrations – the market now
appears to be entering a phase of
cautious stabilisation.
Mortgage rates have begun to ease,
with many lenders reintroducing
more competitive fixed-rate products,
some dipping below 4% in anticipation
of further rate cuts later this year.
In Leicester, where affordability
remains more favourable than in
many southern regions, demand
remains steady, particularly among
first-time buyers and investors seeking
relative value.
This month, The Intermediary set
about examining the current state of
Leicester’s housing market in 2025
– tracking mortgage trends, buyer
behaviour, and the external economic
forces influencing property decisions
across the region.
A
Property values
The Leicester postcode area has seen
a modest market correction over the
past year. The average property price
now stands at £297,000, with a median
value of £260,000.
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The Intermediary | May 2025
Over the past 12 months, average
prices have declined by approximately
£4,300 (1%), reflecting a broader
cooling trend seen across much of
the UK. Established properties are
averaging £295,000, while new-builds
command a premium, with an average
price of £357,000.
A total of 10,400 property
transactions were recorded, marking
a 16.9% decline – down by 2,300 sales
year-on-year – pointing to a more
subdued market environment.
Most activity occurred in the
£200,000 to £250,000 price bracket,
which accounted for 23% of all sales,
followed by the £250,000 to £300,000
range at 18.8%.
On a more granular level, price
disparities remain stark within the
region: the most affordable area is
LE1 3, where average prices are just
£83,200, while LE15 8 ranks as the
most expensive at £598,000.
By property type, detached homes
average £428,000, semi-detached
£260,000, terraced houses £219,000,
and flats £145,000.
Heightened activity
Following the recent period of price
moderation, current housing and
mortgage trends in Leicester suggest
a renewed sense of momentum
and confidence among both buyers
and lenders.
Ravneet Sokhi, senior new-build
mortgage and protection specialist at
Just Mortgages, says: “We seem to be
in a really positive place, with interest
rates heading downwards slowly but
surely. Clients seem confident with
buying and, as interest rates lower,
affordability improves.”
This sentiment is echoed by brokers
across the city, many of whom report
a marked increase in activity as
affordability begins to improve and
borrowing capacity expands.
Sokhi adds: “The last few months
have been my busiest yet. [...] I
imagine we will continue with this
busy period as confidence with clients
strengthens, affordability loosens, and
interest rates reduce.”
This positive shi is being
supported by tangible movements
in the mortgage space. Lenders are
