I hope my question is fairly simple and is answered quickly.

What level does your character have to be for the merchants in the game to sell Leather Armor?

The strange thing for me is that merchants are selling Leather Bracers and Leather Boots, but not the actual armor itself; so I am confused, and I really want Leather Armor for this roleplay I have created.

Should be available from around level 8.You can craft your own with the right components. (4 leather & 3 leather strips - plus another leather to temper it at the table)

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Thank you, I just found it odd the mechants had bracers and boots but not the actual armor.

Sadly I will have to wait for Level 8, my smithing skills are sub-par to say the least

Who would be most likely to have the Armor once I reach Level 8, and what Hold are they located in?

Smithing level doesn't affect making leather armor (since you already have the skill) - only the tempering. You should still get a slight improvement, though

For the armor most blacksmiths should have it. You could try Whiterun - Adrianne and Ulfberth usually have seperate inventories (as long as she's working outside).

Huh, I always thought it was available at level 1 from merchants. If anything, you can make it as soon as you get to Riverwood for the first time. It's probably the best non-faction-related armor until you hit Elven, at least I think it is.

Once again thank you!

I didn't know that your smithing level didn't affect making Leather Armor, but only the tempering. Cool

I thought so, too, but I usually make my own, and don't tend to look for it. It should appear around level 8 according to http://www.uesp.net/wiki/Skyrim:Armor