Rental yields›Leicester
Rental yield in Leicester
Leicester sits in the upper half for rental yield in England and Wales, a bit above the 4.4% typical figure across all 316 areas.
Over the past year, average prices in Leicester rose 1.7% and average rents rose 2.3%.
Gross yield
5.4%
Average price
£228,618
↑ +1.7% / yr
Average rent
£1,024/mo
↑ +2.3% / yr
National rank
#38 of 316
Who rents here
Census 2021, 127,389 households
29.4% of homes in Leicester are private rentals.
Average rent by size
1 bedroom
£717/mo
↑ +2.3% / yr
2 bedrooms
£893/mo
↑ +2.3% / yr
3 bedrooms
£1,046/mo
↑ +2.7% / yr
4+ bedrooms
£1,456/mo
↑ +1.8% / yr
Average advertised rent by number of bedrooms. ONS Price Index of Private Rents (2026-07).
Council tax bands (2026-27)
Band A
£1,686
Band B
£1,967
Band C
£2,248
Band D
£2,529
Band E
£3,091
Band F
£3,653
Band G
£4,215
Band H
£5,058
Average annual bill for the area, including police and other precepts (MHCLG and Welsh Government, 2026-27). Community precepts vary, and the band is set by the property, so check the exact band on gov.uk.
Work out the yield on a specific property
Pre-filled with the Leicester average. Change them for a real property.
That is right on the Leicester average of 5.4%. Add costs for a net estimate.
How it compares
Areas with a similar yield
Common questions
Is Leicester a good place to buy to let?
It is around the middle for rental income, at a 5.4% average gross yield. Whether it works depends on the specific property, so always run the actual numbers.
Are rents rising in Leicester?
Over the past year, average rents in Leicester rose 2.3% and average prices rose 1.7% (HM Land Registry and ONS, to 2026-07).
Is there rental demand in Leicester?
Rent movement is the best free proxy for tenant demand, and average rents in Leicester rose 2.3% over the past year (ONS), which points to tenants competing for available stock. Still ask local letting agents about typical void periods before committing to a buy-to-let there. For the size of the market: at the 2021 census, 29.4% of Leicester's 127,389 households rented privately (23.2% social rented, 46.7% owner occupied).
What is the average rent for a 1, 2 or 3 bedroom property in Leicester?
As of 2026-07, average monthly rents in Leicester by property size are £717 for a 1 bedroom property, £893 for a 2 bedroom property, £1,046 for a 3 bedroom property, £1,456 for a 4 or more bedroom property (ONS). The all-size average is £1,024 a month.
How much is council tax in Leicester?
In 2026-27, the average Band D council tax in Leicester is £2,529 a year including police and other precepts. Bills scale with the property's band: from £1,686 for Band A up to £5,058 for Band H. Community precepts vary within the area, so treat these as area averages and check the exact band and bill with the council.
What is a good rental yield in the UK?
As a rough guide, under 4% is low, 5 to 6% is typical, and above 6.5% is high. Leicester is at 5.4%.
Gross yield = annual rent divided by average price. Average price: HM Land Registry UK HPI (01/06/2026). Average rent: ONS Price Index of Private Rents (2026-07). Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.