As property investors, we’re often wondering where our next move should take place. In this article, we are going to uncover the advantages of investing in a Preston buy-to-let property and why the area has become increasingly popular.
Like any free market in the world conditions change and demand may differ too, and so when you’re looking to invest again then it makes sense to reassess and decide whether to continue to invest in the same types of properties in similar areas, or whether to venture further afield for new opportunities.
Similarly, there are benefits and drawbacks to different investment strategies. Investing in more established city and urban centres brings almost guaranteed tenancy rates, but asset price growth can be slower and the price of entry is usually much higher.
If we set London aside for now, as the price of entry in that market is almost uniquely exclusive due to price demands, then the more established cities of Bristol, Manchester, Liverpool and Leeds are perhaps good examples of the recognised urban centre strategy.
But, the other strategy is to look for excellent value outside of these areas where the entry price is lower, capital appreciation is faster and yields are higher. So why not take a look at Preston buy-to-let?
After receiving city status in 2002, becoming the UK’s 50th city in the queen’s 50th year of her reign, Preston has grown from strength to strength and now sits as a shining example of regeneration and possibilities for investment.
Serving as Lancashire’s county administrative centre, as well as the wider city area, Preston is now home to thousands of jobs, new businesses and a booming local economy.
According to Preston’s City Investment Plan, “Over the past few years stakeholders in Preston have committed to the following strategic priorities driven by the challenges and opportunities the city and wider county faces. This provides the foundations for the 15-year plan:
- Transforming Preston’s cultural infrastructure, focusing on cultural and leisure facilities, spaces and programmes
- Expanding and diversifying the housing supply to significantly boost city centre living
- Delivering a ground-breaking approach to community health and wellbeing in the city
- Supporting Preston’s economic recovery, skills, growth and resilience
- Achieving a step change in sustainable movement and accessibility in the city by delivering the Icon for Preston City Transport Plan
- Delivering a new commercial district at Preston Station Quarter
Investment property in Preston
So what does the property market look like in Preston? According to Rightmove, “Properties in Preston had an overall average price of £183,326 over the last year.”, with prices increasing by 6.2% throughout 2021 according to HM Land Registry.
What about yields then? As noted by the Buy Association “According to PropertyData, average gross yields in the PR1 postcode are an impressive 7.5%. This figure has risen by 14% over the past five years, and is well above the national average.”
The Buy Association goes on to note that rental demand in the city area is extremely high due to a large student population, a higher than average employment rate meaning lots of young professionals, and a large population.
All of these factors come together to make Preston an excellent place to invest in buy-to-let property. If you’re interested in investment in buy-to-let in Preston, then why not take a look at our latest opportunity in the area, Guildhall Gardens?