Leicester’s Premier League success will help create a housing market bounce, says Anna White.
Leicester City have made history, The Premier League underdogs won the title race on Monday when Chelsea drew with second-place Tottenham. Such an achievement will create an inevitable short-term, economic boost as diehard fans (and probably a whole bunch of new ones) celebrate in the bars and restaurants across the East Midlands city.
But, is such victory too short lived to mobilise the local property market? House prices have risen 8,845 per cent since the football club’s arguably most well-loved player, Gary Lineker, was born in 1960. This is hardly surprising given the almost continual rise in property values in the UK since the Seventies when the construction rate of new homes started to fall.
However in the 12 months to March, Leicester outpaced the rest of the East Midlands with 7.5 per cent rise in value (to £154,477) against the wider country’s 5.7 per cent, according to data from Savills. The club’s defender Wes Morgan, who transferred from Championship club Nottingham Forest in 2012 to Leicester, moved to a better-performing town on both the pitch and the street.
The total value of housing, according to Savills’ Lucian Cook, in Leicester is £15.2 billion – just 13 per cent of the value of the London borough of Kensington & Chelsea, for example, where the value of homes totals £113.5 billion. The founder of the online agent, eMoov, Russell Quirk, is optimistic that this week’s Premier League win will boost the housing market. “Local euphoria in Leicester will be through the roof at the moment, this can contribute to a feel-good factor that can motivate spending, even on housing,” he says. “This should, for the short term at least, lead to heightened demand for property and an increase in average price.”
It’s not all about the beautiful game. The city centre is also buzzing with the sound of construction. Arcus and The Bar is a major new development comprising 64 new apartments connected to the Highcross shopping centre. Prices start at £127,000. Leicester also has the largest economy in the East Midlands and more than 350 international companies have their headquarters there.
But the power of the Premier League should not be underplayed, says Nick Whitten at JLL. “It is one of the UK’s biggest exports and the Foxes’ title win has thrust the city onto the world stage which could boost tourism and create new jobs and a housing market bounce.”