Leicester is an excellent choice for property investors looking to expand their portfolios. With affordable property prices, growing rental demand, and a steady influx of students and professionals, the city offers significant opportunities for the Buy, Refurbish, Refinance, Rent (BRRR) strategy.
At Pearl Lemon Properties, we specialise in helping investors take advantage of Leicester’s property market. Whether you’re interested in sourcing properties near the University of Leicester or family homes in areas like Oadby and Knighton, we offer a complete solution to support your BRRR strategy. With rental yields averaging between 5% and 8%, and even higher for HMOs, Leicester delivers strong returns when approached with the right plan.
BRR Property Sourcing in Leicester
Sourcing the right property in Leicester is a critical step in the BRRR process. Leicester’s property market includes a wide range of opportunities, from Victorian terraces in Clarendon Park to semi-detached homes in Wigston. Pearl Lemon Properties has a deep understanding of the market and works to identify undervalued properties that align with investors’ goals.
One example involved sourcing a three-bedroom terraced house in Highfields for £160,000. With a £30,000 refurbishment that included kitchen upgrades, modern bathroom fittings, and double glazing, the property’s value increased to £220,000. It now generates £2,700 per month as an HMO, delivering a gross rental yield of 12%.
Strategic Locations in Leicester for BRRR Investors
Knowing where to invest in Leicester can make a significant difference in your returns. Highfields and Clarendon Park are ideal for student HMOs due to their proximity to De Montfort University and the University of Leicester, while Wigston and Oadby attract families seeking quality schools and quiet living environments.
In one project, an investor purchased a two-bedroom house in Aylestone for £155,000. After reconfiguring the floor plan to add an additional bedroom and upgrading the interiors with new flooring and modern lighting, the property was revalued at £215,000. It now rents for £1,150 per month, achieving a gross yield of 8.9%.
Adding Value Through Refurbishment
Refurbishment is where BRRR properties gain the value necessary for refinancing and securing higher rental income. Many older properties in Leicester require upgrades to meet modern rental standards. Pearl Lemon Properties manages refurbishment projects that range from cosmetic improvements to large-scale HMO conversions.
Energy efficiency upgrades are increasingly important due to government regulations requiring rental properties to meet EPC ratings of C or above by 2025. In a recent project in Braunstone, a £15,000 refurbishment added loft insulation, replaced an outdated boiler, and installed energy-efficient windows. These changes improved the property’s EPC rating from D to B and reduced tenant energy costs by 25%.
Another project in Stoneygate involved converting a four-bedroom house into a six-bedroom HMO. By investing £50,000 into the conversion, the property increased in value by £80,000 and now generates £3,500 in monthly rental income.
Refinancing to Scale Investments
Refinancing is the pivotal step in the BRRR strategy that allows investors to release equity and reinvest. Leicester’s affordable property market, with an average price of £269,000, offers strong opportunities for refinancing after refurbishment.
We recently worked with an investor who purchased a terraced house in Wigston for £170,000. Following a £20,000 refurbishment that included upgrading the kitchen and repainting the entire property, it was revalued at £240,000. This allowed the investor to release £56,000 in equity, which they used to purchase another property in Clarendon Park.
By working with local lenders and valuers, Pearl Lemon Properties ensures that properties achieve optimal valuations, providing investors with the funds they need to continue building their portfolios.
Leicester’s Rental Market and Tenant Expectations
Leicester’s rental market is driven by its diverse population. The city is home to thousands of students, professionals, and families, each with unique expectations when it comes to rental properties. Pearl Lemon Properties understands these needs and helps investors position their properties to attract long-term tenants.
Student HMOs in areas like Lenton and Highfields need to include features such as high-speed internet, en-suite bedrooms, and durable furnishings to handle frequent turnover. In contrast, family homes in areas like Oadby benefit from large kitchens, energy-efficient appliances, and outdoor spaces.
In a recent project, Pearl Lemon Properties helped an investor market a five-bedroom HMO in Highfields for £600 per room per month. The property attracted students from De Montfort University within days of being listed, achieving a 10.5% gross yield.
FAQs About BRR Property Sourcing in Leicester
Properties suitable for BRRR strategies in Leicester typically start at £150,000 for terraced homes or flats. Refurbishment costs can range from £20,000 to £50,000, depending on the project scope.
Rental yields in Leicester average between 5% and 8%. HMOs in student-heavy areas like Highfields and Clarendon Park can achieve yields of up to 12%.
The BRRR process usually takes between six and twelve months. Refurbishments typically last 8–16 weeks, with refinancing taking an additional 12 weeks.
Challenges include finding undervalued properties in competitive areas and managing refurbishments to meet Leicester City Council’s requirements for rental properties, particularly HMOs.
Yes. HMOs are in high demand in areas like Highfields and Lenton, where the large student population ensures consistent tenant demand and competitive rental yields.
Build Your Portfolio With BRRR Investments in Leicester
Leicester’s property market offers substantial opportunities for investors ready to implement the BRRR strategy. From sourcing undervalued properties in Wigston or Stoneygate to managing refurbishments and refinancing for equity release, Pearl Lemon Properties provides the services you need to succeed.
Take the next step in growing your portfolio by partnering with a team that understands Leicester’s property market inside out. Schedule a consultation today to get started on your BRRR investment in Leicester.
