The Leicester City Miracle: Sporting Success and the Impact on the Property Market
No sooner had the champagne corks been popped to celebrate Leicester City’s most unlikely of Premier League title wins than analysis was being delivered upon the various affects their triumph might have on the city itself. A new heightened profile and the general feel-good factor around the teams astonishing victory can only be a boon to the local economy (particularly if you’re one of those in possession of a 5000-1 betting slip!). And, as reported in Property Industry Eye, there appears to be a correlation between their success on the field and increases in the average price of local properties.
Which begs the question: what impact does sport have on a region’s property market?
You would expect that a huge global brand such as the English Premier League would have an economic effect on any city or town with which it was connected. And there is certainly evidence to suggest that property prices are, at least in part, affected by a team’s involvement or otherwise.
A report from Property Wire from back in 2014 showed that average house prices in the proximity of the 20 Premier League teams had increased 129% in a decade. And, perhaps more strikingly, they were more than 30% higher than the overall average for England and Wales.
As Leicester have been romping to football glory, so the local house prices have risen more than 7%. Compare that to a year earlier, when their flirtation with relegations coincided with an increase of just 0.4%. With the added attraction and exposure of Champions League football next year, it’ll be interesting to monitor any further impact.
Being a city or region associated with high-level sport is frequently cited as reasons to consider investment. After all, if your city is good enough to host high profile sporting events then there is inherently a sense of vibrancy and prosperity conveyed within the message, isn’t there?
The Student Market
One need only look toward the student sector to see how much of a draw it is when attracting new recruits to respective university campuses. There ae no shortage of examples of websites and prospectuses emphasising the city as a sporting hub when enticing new students. The three Liverpool Universities are certainly not shy in promoting the weekly Premier League football on offer from its two top-flight clubs.
And even those currently outside of football’s elite tend to use sport as a key indicator of attractiveness. A central component of the University of Nottingham’s ‘city life’ section on the website cites the city as a sporting city – referencing its football and a venue for Test cricket among other examples.
These are big student towns using sport as a key attraction. Something not to be ignored by investors, in cities hosting tens of thousands of students each year. Like Liverpool, Nottingham, Manchester and others.
Aside from the remarkable fairytale nature of Leicester City’s Premier League win, there seems to be clear correlations between the success and commercial opportunities; with the property market no exception. It’s a demonstration on the impact that sport can have on a region, with house prices a clear reflection on the perceived success of the city in question. And, with greater exposure from the hosting or regular accessibility of first-class events in the cities from London to Liverpool, Nottingham to Manchester, so they play an important role in the positive story-telling promoted to engage and entice new investors into the local property scene.