The Intermediary – May 2025 - Flipbook - Page 87
L O C A L FO C U S
Leicester
Foreign national demand
DALE TOWNSEND
director and mortgage and protection adviser at Mortgage Bridge
T
he market in Leicester is definitely buoyant. We’re seeing strong
interest from first-time buyers, including a growing number of
foreign nationals keen to get started. Prices are rising, but at a
steadier pace than in other parts of the country, and properties
are shiing pretty quickly.
It’s been busy – particularly with first-time buyers. We’ve seen a
strong appetite from clients on visas and also from those who’ve had
credit issues in the past. At Mortgage Bridge, that’s our sweet-spot –
helping people who’ve been knocked back elsewhere.
Clients are definitely more rate-aware, especially with all the
headlines around potential base rate reductions. Lenders have been a bit
more competitive – not just with rates, but with tweaking criteria,
especially to attract clients like foreign nationals at higher LTVs.
We mostly work with first-time buyers, remortgages – especially
those looking to consolidate debt – and homemovers. ere’s been a real
increase in foreign nationals on visas, and we’re seeing more recent
adverse credit cases too – which we handle a lot of at Mortgage Bridge.
is Ashton Green, a major mixed-use
scheme just north of the city.
Mistry notes that the “large mixeduse development with plans for up to
3,000 new homes, along with schools,
shops, and community facilities,” is
set to become “a key residential hub
that will help ease pressure on the
local housing market.”
Indeed, such is the demand for new
housing, that new-build properties
are commanding a premium in the
area, with the average price now at
£357,000 – up by £10,100 (3%) over the
past year – compared to £295,000 for
established homes.
From March 2024 to May 2025,
there were 425 new-build sales, most
commonly within the £300,000 to
£400,000 price range.
In parallel with rising prices, the
wider financial landscape around newbuilds is becoming more aractive.
Sokhi notes: “We’ve also seen lenders
begin to offer higher lending and even
cashback where the purchase property
has an A or B Energy Performance
Certificate (EPC) rating. This feels like
just another reason for clients to opt
for new-builds.”
Rental recovery
While still recovering from the
regulatory shake-ups and uncertainty
that followed the pandemic, Leicester’s
buy-to-let (BTL) market is showing
clear signs of renewed momentum.
With 20.5% of housing stock in the
private rental sector (PRS) – slightly
below the national average of 23.6%
– the city remains a solid, if slightly
underweight, location for rental
investment.
Mistry notes: “Following Covid-19
and the subsequent regulatory
changes, we saw a significant drop in
buy-to-let enquiries. However, over
the past year, there’s been a steady
resurgence — although the nature of
those enquiries has changed.”
Today, landlords are approaching
the market with greater financial
literacy and strategic intent.
Mistry says: “Clients are now
coming in far more informed and
asking specifically about lenders
who’ll allow the property to be held
in a limited company special purpose
vehicle (SPV) structure. Landlords
tend to be more financially savvy and
aware of the tax efficiencies that come
with structuring their portfolios.”
He adds that most personal name
BTL cases now involve “clients
converting their current home,
usually because they’re moving into a
new residential property.”
He adds: “Otherwise, limited
company purchases are very much the
preferred route.”
Leicester
Residents
1.1m
Average age
39.9
Residents per household
2.52
Leicester postcode area. Source: www.plumplot.co.uk
Townsend echoes this resurgence,
pointing out that “buy-to-let’s started
to pick up again. Landlords seem more
active this year.”
He also highlights growing investor
interest in the student accommodation
sector, driven by new purpose-built
developments in key university
areas. This is a market segment that
is “drawing interest from portfolio
landlords and investors.”
Resilient market
While affordability challenges and
regulatory changes have reshaped
both the residential and investment
landscapes, Leicester remains an
aractive and resilient market.
First-time buyers, foreign
nationals, and savvy investors alike
are navigating a landscape shaped by
falling interest rates, growing newbuild opportunities, and a sharper
focus on affordability.
Lenders are adapting, developers are
innovating, and buyers are no longer
just taking what is available – they
are asking the right questions and
choosing wisely.
Whether it is a Shared Ownership
home in a leafy suburb, a student
flat near the university, or a family
home in one of the city’s commuter
sweet-spots, the market is anything
but sleepy.
As Mistry neatly sums it up:
“There’s still a healthy appetite for
property, especially in well-connected
and family-friendly areas, and
while buyers have been cautious,
the underlying demand hasn’t
gone away.” ●
May 2025 | The Intermediary
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