Rental yields›East Midlands›Leicester
Rental yield in Leicester
29.4% of households in Leicester rent privately, one of the highest shares in England and Wales.
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 fell 0.9% and average rents rose 1.6%.
Average gross yield
5.4%
#40 of 316 areas
Average price
£227,322
▼ 0.9% past year
Average rent
£1,023/mo
▲ 1.6% past year
Privately rented
29.4%
of 127,389 homes
Average rent by size
1 bedroom
£716/mo
↑ +1.5% / yr
2 bedrooms
£892/mo
↑ +1.6% / yr
3 bedrooms
£1,045/mo
↑ +2.1% / yr
4+ bedrooms
£1,453/mo
↑ +1.1% / yr
Average private rent by number of bedrooms, across new and existing tenancies. ONS Price Index of Private Rents (August 2026).
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.
How it compares
Deprivation (IMD 2025)
200 neighbourhoods
20% of Leicester's neighbourhoods are in England's most deprived 10%. The typical one sits in the more deprived half of the country.
Fifths of England, most to least deprived (MHCLG IMD 2025). It shifts street by street, so check a specific postcode.
Leicester has 2 Article 4 areas restricting HMO conversions in the national planning dataset, where turning a family home into a small house-share needs full planning permission. 354 more Article 4 areas cover other rights, such as home alterations.
Check on the Article 4 map →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.
Nearby areas
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 1.6% and average prices fell 0.9% (HM Land Registry and ONS, to August 2026).
Is there rental demand in Leicester?
Rent movement is the best free proxy for tenant demand, and average rents in Leicester rose 1.6% 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 August 2026, average monthly rents in Leicester by property size are £716 for a 1 bedroom property, £892 for a 2 bedroom property, £1,045 for a 3 bedroom property, £1,453 for a 4 or more bedroom property (ONS). The all-size average is £1,023 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.
How deprived is Leicester?
On the English Indices of Deprivation 2025, 20% of Leicester's 200 neighbourhoods are in England's most deprived 10%, and 0% are in the least deprived 10%. The typical neighbourhood is in decile 2 of 10, where 1 is most deprived. Deprivation shifts street by street, so check the exact postcode before you offer.
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 (July 2026). Average rent: ONS Price Index of Private Rents (August 2026). Deprivation: MHCLG English Indices of Deprivation 2025. Regions: ONS. Local-authority averages across all property types, indicative only. Contains public sector information licensed under the Open Government Licence v3.0. Not investment advice.