The Leicester Property Ladder: Where the Biggest Price Jump Really Happens.

Where the Biggest Price Jump Really Happens

We often talk about the average price of a home in Leicester, but that single figure can hide more than it reveals.

A one-bedroom flat, a three-bedroom family home and a substantial four-bedroom property serve completely different buyers. Combining them into one city-wide average does not tell us how the local property ladder is shaped, or how much buyers have historically paid to move from one rung to the next.

Looking at completed property sales split down by bedroom and price in Leicester since 1 January 1995 gives us a much clearer picture. During that period, 141,350 homes were sold across Leicester. Of those transactions, 5,286 were one-bedroom homes, 30,769 had two bedrooms, 76,185 had three bedrooms and 29,110 had four bedrooms or more.

(Leicester – LE1-9, LE19)

These figures are based on homes that actually sold. They are not estimates of what the properties are worth today, nor are they current asking prices. They show the average prices paid by buyers across completed transactions since the beginning of 1995.

What type of homes make up the Leicester property market?

The mix of homes sold in Leicester can be compared with the national housing market to show whether the city is weighted more heavily towards smaller properties, mid-range family homes or larger executive houses.

In Leicester, one-bedroom homes represented 3.7% of sales, while the national figure is 7.38%. Two-bedroom homes made up 21.8% of the local market, compared with 25.98% nationally. Three-bedroom homes accounted for 53.9% of sales in Leicester, against the national benchmark of 46.06%. Finally, homes with four bedrooms or more represented 20.6% of Leicester sales, compared with 20.58% nationally.

As you can see, there is a slight difference between the local mix and the national mix.

What have buyers historically paid for their Leicester homes?

Across completed sales since January 1995, the average price paid for a one-bedroom home in Leicester has been £139,081. The average paid for a two-bedroom home has been £148,074, while three-bedroom properties sold for an average of £178,538, and for homes with four bedrooms or more, the average price paid has been £300,146.

Again, these figures should not be read as current valuations.

A home bought in 1995 forms part of the same dataset as one purchased much more recently. The figures instead provide a long-term picture of what buyers have paid for different sizes of property. The more revealing numbers are the gaps between them.

Where is the biggest price jump in the Leicester area?

In Leicester, the average price paid rises by 6.5% when moving from a one-bedroom home to a two-bedroom home. Nationally, the equivalent increase is 25.6%. The jump from two bedrooms to three bedrooms is 20.6% in Leicester, compared with 26.8% across the country. Moving from a three-bedroom home to a property with four bedrooms or more produces an uplift of 68.1% locally, against a national increase of 46.8%.

These figures do not suggest that one type of home offers better or worse value. They simply show how the average prices paid have differed between each rung of the property ladder since January 1995. The gaps/mix reflects the type, location, and quality of homes sold within each bedroom category.

How the Leicester postcode districts compare.

The Leicester average provides the main picture, but the local and surrounding area property market can vary significantly between postcode districts. Here is a selection of the Leicester postcodes to compare.

• LE1 - 36.4% of sales were one-bedroom homes, 53.6% were two-bedroom, 6.2% were three-bedroom and 3.8% had four bedrooms or more. Average prices paid were £180,568 / £193,570 / £173,130 and £569,030 respectively.

• LE2 - 5.2% of sales were one-bedroom homes, 24.2% were two-bedroom, 49.4% were three-bedroom and 21.2% had four bedrooms or more. Average prices paid were £157,055 / £146,596 / £180,096 and £306,806 respectively.

• LE4 - 3.6% of sales were one-bedroom homes, 21.4% were two-bedroom, 65.1% were three-bedroom and 9.9% had four bedrooms or more. Average prices paid were £97,865 / £140,649 / £154,428 and £242,515 respectively.

• LE5 - 2.9% of sales were one-bedroom homes, 18.9% were two-bedroom, 59.4% were three-bedroom and 18.7% had four bedrooms or more. Average prices paid were £120,879 / £132,231 / £163,352 and £257,329 respectively.

• LE7 - 1.7% of sales were one-bedroom homes, 20.0% were two-bedroom, 45.9% were three-bedroom and 32.4% had four bedrooms or more. Average prices paid were £135,491 / £167,583 / £236,183 and £354,754 respectively.

• LE19 - 1.7% of sales were one-bedroom homes, 21.5% were two-bedroom, 51.9% were three-bedroom and 24.9% had four bedrooms or more. Average prices paid were £156,670 / £169,807 / £208,698 and £286,013 respectively.

The figures show that there is no single Leicester property market.

Different parts of the city contain different mixtures of homes, attract different buyers and create different price jumps between bedroom categories. For Leicester homeowners, this is why broad national headlines and even regional and city-wide averages should always be treated as a starting point rather than the final answer.

The value and saleability of an individual home will depend on its condition, location, style, plot, presentation and the strength of current buyer demand. However, the historic sales data does reveal something valuable. It shows the structure of the Leicester property ladder, where most local transactions take place and, most importantly, where buyers have historically faced the biggest jump when searching for their next home.

Share your thoughts on your story of climbing up the property ladder. Was it worth it? Did it change your life? Would you do it again?