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Buy to let preston

Buy-to-let Preston Overview

Preston is the third largest city in the North West, and the largest in its county of Lancashire, following the award of city status in 2002. This is a confident, welcoming city which is friendly to business and regularly performs well in PwC’s Good Growth for Cities Index which analyses jobs, transport, average incomes and work-life balance, among other things.

The city hosts the University of Central Lancashire (UCLAN) which is home to almost 40,000 students and staff and provides innumerable benefits. As well as the usual positive aspects of a city university – such as the millions of pounds brought to the area by students – an unusually high percentage of UCLAN graduates choose to stay in Preston following graduation. This provides the city and businesses with an invaluable, highly trained workforce across fields as diverse as engineering, manufacturing, digital and creative, and logistics.

How much do you need for a buy-to-let?

The cost of a buy-to-let differs based on a number of factors, with each individual application subject to the circumstances of the investor. Whilst off-plan properties are predominantly a cash investment, investors can apply for specific buy-to-let mortgages through different lenders, although the critria is a lot more specific. Here at Knight Knox, we have buy-to-let properties in Preston started from just £115,495 – take a look here!

What is a good rental yield in Preston?

As a rule of thumb, buy-to-let investors look to achieve a rental yield that is around 5-8%, providing landlords with a reasonable return on investment whilst still covering necessary expenditure. According to PropertyData.co.uk, the average rental yield in Preston currently stands at 4.2%, above the national average of 3.63% (HomeLet). The PR1 postcode in particular offers strong yields of 6.2%.

Is Preston a good place to invest in property?

Preston is definitely one of the UK’s leading buy-to-let hotspots. The city is home to a young population that is continuing to grow thanks to the increasing number of job opportunities and unparalleled connectivity in the city. With house prices in the North West set to soar in the coming years, Preston will no doubt play a leading role in this growth and is most definitely a good place to invest.

Preston buy-to-let market.

Preston has blossomed in recent years into a true buy-to-let hotspot. In 2021, house prices in Preston increased by an impressive 6.2%, according to the government’s UK House Price Index, bettering the likes of Cambridge and Cumbria. This growth follows a massive increase in house prices over the last decade, with prices in Preston rising by 60% in the 2011-2021 period according to Foxtons. WIth North West house prices set to experience an incease of 18.8% in the next 5 years (Savills), Preston will continue to offer a fine investment location for buy-to-let property.

Regeneration in Preston

Preston is a city which inspires people to invest in its future. A great location, strong businesses, a higher education sector going from strength to strength and a growing reputation for radical economic excellence has resulted in an impressive programme of investment which is changing the city which, as a result, has massively improved the buy-to-let market in the city.

Connectivity

Preston is one of the most well-connected cities in the UK. Road and rail links to major cities across the country – including Manchester, Liverpool, Glasgow, Birmingham and London – make Preston an ideal place to live and the perfect location for businesses which rely on good logistics. In addition to the current network and the ongoing investment into the road network, Preston will also benefit from the upcoming HS2 high speed rail network which will reduce journey times from North to South.

Current buy-to-let Preston opportunities

Buy-to-let Preston Stats

 

4.1%

The average rental yield in Preston is 4.2% (PropertyData.co.uk)

6.2%

House prices in Preston increased by 6.2% throughout 2021 (ONS, 2022)

18.8%

House prices in the North West are forecast to increase by an impressive 18.8% during the 2022-2026 period. (Savills, 2021)

1 hour

Preston is less than an hour away from Manchester via train.

Download our top 5 buy-to-let locations guide below!