Why Invest in Leicester HMOs?
Leicester provides many of the key indicators that HMO investors look for in a new investment location. The city combines relatively affordable property prices with a large student population and established demand for rental accommodation. Home to more than 46,000 students across the University of Leicester and De Montfort University, the city has a substantial and recurring tenant base for well-located shared properties.
Property prices in the city also provide an attractive entry point. As of May 2026, the average property price in Leicester sits below the UK average at £230,000. This is an attractive proposition for both new and seasoned investors as, while this is not the average price of a HMO specifically, it can be an indicator that the cost of entry into the market will be lower than other UK investment locations.
Additionally, the high demand of high quality shared accommodation in the city is not solely generated by the healthy student population. As one of the East Midlands’ major economic and employment centres, the city attracts graduates, young professionals and other working tenants seeking flexible and affordable accommodation. This gives landlords the opportunity to target both student and professional HMO markets, depending on the location and type of property.
Leicester’s central location and excellent transport links also add to its investment appeal. The city benefits from excellent road connections via the M1 and M69, while direct rail services put London just over an hour away. Continued investment across areas such as the Waterside regeneration area and Leicester’s city centre is also helping to create new homes, employment opportunities and improved infrastructure.
For investors looking to build a high-yield property portfolio in an established Midlands rental market, Leicester HMOs offer a compelling combination of tenant demand, accessible property prices and opportunities across both the student and professional rental sectors.
