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.
For investors seeking high returns with a lower initial outlay, Preston offers excellent value compared to more established urban centres like Manchester and Liverpool. With lower entry prices, faster capital appreciation, and higher rental yields, Preston has become a highly attractive buy-to-let hotspot. The city’s combination of affordability and growth potential makes it an ideal market for investors looking to diversify their portfolios.
At Knight Knox, we believe that successful property investment isn’t limited by location. No matter where you are, you can invest in top-tier buy-to-let properties that match your goals and maximise your returns.
Whether you’re interested in Preston or other thriving cities across the UK, our extensive portfolio offers lucrative opportunities accessible from anywhere. Browse our range of UK-wide investment properties below.
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4.1%
The average rental yield in Preston is 4.4% (PropertyData.co.uk)
10%
House prices in Preston increased by 10% throughout 2022 (ONS, 2023)
11.7%
House prices in the North West are forecast to increase by an impressive 11.7% during the 2023-2027 period. (Savills, 2022)
1 hour
Preston is less than an hour away from Manchester via train.
Preston has blossomed in recent years into a true buy-to-let hotspot. In the 12 months to November 2022, house prices in Preston increased by an impressive 10%, 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 increase of 11.7% in the next 5 years (Savills), Preston will continue to offer a fine investment location for buy-to-let property.
As of last year, properties in Preston had an average price of £183,326, and house prices increased by 6.2% in 2021 alone, according to HM Land Registry. This steady growth positions Preston as an excellent opportunity for investors looking for both capital appreciation and strong rental income.
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 and has massively improved the buy-to-let market in the city.
Since receiving city status in 2002, Preston has emerged as a thriving hub for business and investment. The city is home to thousands of jobs and a booming local economy. The Preston City Investment Plan outlines a long-term strategy to enhance the city’s cultural infrastructure, expand city-centre housing, support economic growth, and develop a new commercial district at Preston Station Quarter. These regeneration projects are contributing to Preston’s rise as a prime location for buy-to-let property investment.
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.
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 criteria is a lot more specific.
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 expenditures. According to PropertyData.co.uk, the average rental yield in Preston currently stands at 4.4%, above the national average of 3.63% (HomeLet).
The PR1 postcode offers some of the highest yields in Preston, with an impressive average gross yield of 7.5%, well above the national average. This figure has grown by 14% over the past five years, highlighting the area’s potential for strong rental returns.
With high rental yields, a growing economy, and rising property values, Preston offers a strong case for long-term buy-to-let investment. The city’s young population and economic growth ensure consistent demand for rental properties, making Preston one of the top investment locations in the North West.
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