Preston Property Investment: A Buy-to-Let Hotspot
Total Population (2022)
Annual GVA Contribution
Average House Price (2024)
House Price Growth (1995–2024)
Preston has quickly become one of the UK’s top locations for property investment, offering affordability, strong rental yields, and excellent potential for capital growth. Situated at the heart of the Northern Powerhouse, it’s a magnet for savvy buy-to-let investors, with a property market that caters to all tastes – from contemporary studio apartments to classic terraced homes.
The city’s ongoing regeneration projects and strategic location make it an ideal choice for property investment. For those considering areas near the University of Central Lancashire, there’s a wide selection of student accommodation available. Preston’s popularity is also boosted by its status as a key transport hub, offering excellent links to Manchester, Liverpool, and the Lake District.
At Flambard Williams, we specialise in helping investors discover the best property opportunities in Preston. Partner with us to expand your portfolio and take advantage of the city’s vibrant property market.
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Buy to let Investment Properties In Preston
Guildhall Gardens
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Why Invest in Preston?
A Thriving Economy
Preston is a leading hub for economic growth in the North West, driven by the government’s Northern Powerhouse initiative and ambitious local development projects. Contributing over £1 billion in Gross Value Added (GVA) annually, the city’s economy is underpinned by key employers such as Royal Preston Hospital, the University of Central Lancashire (UCLan), Lancashire County Council, BAE Systems, and Booths. Preston’s economy is currently valued at approximately £8 billion, with a growth rate of around 2.5% annually.
Economic Growth and Affordability in Preston
Preston boasts major employers like Royal Preston Hospital and UCLan, contributing significantly to the local economy. Projects like the Preston Western Distributor retain 82% of spending locally. Over the past decade, the economy grew 25%, with house prices averaging £172,000 (Sept 2024), offering affordability and strong investment potential.
Rising Population
Driven by its appeal to young professionals, families, and students equally, Preston’s population is steadily increasing. With over 30,000 students enrolling annually at the University of Central Lancashire, the demand for student accommodation in Preston remains consistent.
Growing Demand for Housing in Key Areas
The influx of young professionals in areas like Ashton-on-Ribble and the city centre boosts demand for new homes and flats.
Population Growth Outpacing National Trends
Preston's population rose 5% from 2011–2021, with a 2.6% growth from mid-2021 to mid-2022, surpassing the 0.9% decade average.
Connectivity and Transport Links - Powering Preston's Transformation
Preston boasts excellent connections to major UK cities, including Manchester, Liverpool, and Birmingham.
With regular trains to London in just 2 hours 14 minutes, Preston railway station serves as a key hub in the North West.
Proximity to Major Cities
Quick access to Manchester, Liverpool, and Birmingham makes Preston ideal for commuters.
Exceptional Rail Links
Reach London in just over 2 hours via Preston’s well-connected station.
Regeneration Boost
Transport upgrades and central amenities are driving property demand and growth.
60%
30,000+
6.30%
2 Hours 14 Minutes
The number of day visitors continues to rise and now stands at 54.28m – an increase of over 4 million visitors from 2022.
£1 Billion
Other figures show hotel occupancy rates from 2022 rose 2.2% to 76.5% in 2023, almost level with the 2019 figure of 78.4%.
High-Yield Apartments on Sale in Preston For Your Next Investment
Guildhall Gardens
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Property Price
Rent per month
Rental Yield
Guildhall Gardens is a stylish apartment development in Preston’s prestigious Winckley Square, offering high rental demand and modern living. This development provides a unique opportunity for investors seeking strong rental yields and long-term growth potential.
Close to city centre and key amenities
32 one-bedroom and 3 two-bedroom flats
0.5 miles from Preston Railway Station
Backed by a growing local economy
Connected to 4 major motorways and rail networks
Secure entry and nearby parking facilities
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Preston Regeneration
Regeneration Efforts Redefining Preston
Preston is experiencing considerable renovation, cementing its position as a major investment hub in the North West. These revolutionary developments are modernising infrastructure, improving cultural and recreational facilities, and driving up demand for residential and commercial buildings.
Preston City Deal
The £430 million City Deal is at the centre of this change. Its goal is to build thousands of new homes and create 20,000 new jobs over the next ten years. As part of this plan, major improvements will be made to infrastructure, transport, and public spaces. This will make Preston an important business hub in the region.
Harris Quarter Towns Fund Investment Programme
With an investment of £20.9 million, a big project that focuses on improving the arts and culture is the Harris Quarter Towns Fund Investment Programme. In order to bring more people to the city centre and boost business, it is important that the historic Harris Museum be restored and new public places be built.
Preston 35 Vision
Long-term, over £1 billion plans are laid out in the Preston 35 Vision, which is set to happen by 2035. This extensive plan includes the Station Quarter, stages of the Stoneygate Urban Village, and the revitalisation of Preston Docks. These projects attempt to increase the city’s activity and environmental friendliness while also attracting businesses, residents, and tourists.
UCLan Improvements
Also, the Preston campus of the University of Central Lancashire (UCLan) is getting over £200 million in improvements. This includes building new, more advanced schools, making public spaces nicer, and doing other improvements that help the local economy by bringing in students and young professionals.
Large-scale initiatives to improve the city are turning Preston into a modern, vibrant city. The smart financial investments and new projects are raising property values and rental demand, giving investors numerous opportunities to make money.
The Northern Powerhouse Initiative
Preston plays a central role in the Northern Powerhouse initiative, aimed at driving economic expansion in the North of England. This government-backed program helps towns like Preston improve their infrastructure, make new employment opportunities, and encourage new ideas.
A commitment of £13 billion to improve transport between 2015 and 2020 is one of the big investments made in the plan. Also, £660 million has been set aside by the Northern Powerhouse Investment Fund II to help smaller companies all over the North. This means more investment and growth in the city, which is good for real estate investors because it makes the economy stronger and prices go up.
The initiative has already bolstered Preston’s position as a regional hub in the North West, attracting businesses and young professionals seeking affordable housing near growing job opportunities. This means particularly in well-known locations like Ashton-on-Ribble and the city centre, there will be more demand for rentals and fantastic possibilities to buy and rent.
Infrastructure and Transport Developments
Significant investment in transport infrastructure—including new roads, more public transport choices and better M6 motorway access—is part of the City Deal.
These improvements mean improved connectivity for both inhabitants and commuters, therefore enhancing the city’s appeal. Buy to let areas close to important transit hubs, such as Preston railway station and the city centre, are starting to be top destinations for buy to let homes and capital growth for investors.
Furthermore changing how people negotiate the city are better pedestrian and bicycle paths, thus enhancing the liveability of places like South Ribble and North Preston. These improvements boost home values and help Preston’s modern, well-connected reputation be strengthened.
Green Building Initiatives
Preston’s regeneration plans centre sustainability, with an eye towards environmentally friendly projects and green building techniques. Energy-efficient technologies and ecological materials are being included into new built houses in places like East Preston and South Ribble.
Preston City Council is giving green areas primary priority even if major money for parks, gardens, and urban green zones comes from elsewhere. Preston residents’ quality of living is raised as well as the long-term value of the buildings by this commitment to sustainability.
Green housing projects provide investors with a chance to future-proof their portfolios and leverage a growing market demand for environmentally friendly living.
Investment for infrastructural upgrades
New Jobs
Green Space Expansion
UCLan Investment
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Preston’s Growing Tenant Base
Preston’s expanding tenant base presents an excellent opportunity for investors seeking stability and strong rental demand. Driven by professionals, families, and students, the city offers a diverse and reliable rental market.
The key advantage lies in the variety of property requirements, ranging from modern flats in the city centre to family homes in the suburbs. This diversity ensures long-term investment prospects for those looking to capitalise on Preston’s growing population.
Immediate Income Generation
With over 60% of households renting homes with at least two bedrooms, demand for larger properties is strong. Rapid population growth and an 18% rise in rental enquiries in the PR1 postcode highlight the excellent opportunities for buy-to-let investors.
Appeal for Tenants
Preston attracts young professionals and families with its affordable housing, strong job market, and excellent transport links, ensuring consistent tenant demand.
Preston’s Culture and Lifestyle
Preston isn’t just about affordability and great transport links—it’s also a city rich in culture and lifestyle amenities. For tenants and residents, the city offers a perfect mix of historic attractions, green spaces, and modern leisure facilities. This makes the city more than just a place to live, a place to thrive.
Attractions and Amenities
Preston boasts a vibrant cultural scene, with landmarks like the Harris Museum and Art Gallery drawing thousands of visitors annually.
The city also has lovely Avenham and Miller Parks, which are close to the city heart and offer peaceful green spaces. These attractions make life better for renters and make the places around them more appealing to people who want to buy homes.
In Preston city centre, you can shop and have fun at high-street names, independent boutiques, and a growing number of restaurants. For those who enjoy outdoor activities, the city is also close to the Lake District and the Forest of Bowland, which makes life fantastic.
Visit Lancashire claims that 32% of Preston people routinely participate in leisure activities within these surrounding attractions, which enhances the city’s appeal to families and businesspeople.
Preston’s cultural festivals, including the annual Caribbean Carnival, draw large crowds and celebrate the city’s diversity. These events add vibrancy to the community, making areas near the city centre and local amenities highly desirable for tenants—and lucrative for property investors.
Preston as a Buy-to-Let Property Investment Hub
Preston has confirmed its position among the most promising buy-to-let property investment centres in the North West. The city presents great possibilities for investors with high rental demand, appealing rates, and growing chances for short-term rentals.
It’s in a great spot, is affordable, and has a growing pool of tenants, so individuals looking for long-term rental income and capital growth like it a lot.
Rental Demand
Preston’s mix of families, young professionals, and students is driving strong rental demand in the city. The University of Central Lancashire (UCLan) guarantees steady student demand; important businesses like Royal Preston Hospital and vibrant retail centres draw professional tenants.
Particularly popular are the postcode areas PR1 and PR2; PR1 serves city-centre workers and students, while PR2 caters to families and professionals looking for suburban houses.
The rental demand in Preston increased by 6.3% from September 2023 to September 2024, highlighting the city’s strong buy-to-let potential. This demand ensures a stable stream of tenants for rental properties across the city.
6.30% yield in PR1
Best city-center rental returns
Average Rental Yields by Postcode Area
For buy-to- let investors, Preston presents some of the best rental yields available in the UK. Thanks to their appeal among professionals and students, postcode regions like PR1—which covers the city centre—delivery yields as high as 6.30%.
Also, PR2, which includes Ashton-on-Ribble and Fulwood, has yields of about 5% because families and healthcare workers want to live there.
For investors looking for homes in suburbs or buy-to-let areas that are still being built up, places like North Preston and South Ribble offer yields of 4% to 6%, depending on the type of property. The high rental rates in these locations guarantee Preston stays a top choice for buy-to-let investment.
Opportunities for Short-Term Lets in Preston
As short-term rentals become more popular, they open up a new chance for Preston real estate investors. It’s easy for tourists and business travellers who need casual accommodation to get to the city from places like the Lake District, Manchester, and Liverpool.
Serviced apartments and Airbnb-style rentals that are only available for a short time are very popular in the city centre and near famous spots like the Harris Museum and Avenham Park.
People who invest in short-term rentals can make 10–15 percent more than those who invest in long-term rentals. Also, this is very important when UCLan or other close business hubs have a lot of tourists or big events. People who want to make a lot of money in real estate are drawn to these different areas.
Tourist and Business Rental Markets in Preston
Preston’s reputation as a regional hub draws a varied mix of guests, from businesspeople attending conferences or events to leisure travellers enjoying the adjacent Forest of Bowland and Lake District. Particularly in major areas like PR1 and PR2, these tourist groups help to drive an increasing demand for short-term rental apartments.
Visit Lancashire claims that Preston’s tourism boosts the local economy by over £400 million yearly, thereby offering a strong basis for businesses trying to serve this market.
On the other hand, business visitors choose serviced flats and first-rate hotels close to Preston train station or the city centre. Strong and regular demand for rantals catered to the tourism and corporate rental sectors is guaranteed by this twin attraction.
Increase in Rental Demand
Annual Tourism Contribution
Average Rental Yield in PR1
Higher Short-Term Rental Returns
Rent Returns in Suburban Regions
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Affordable and Diverse Options
Preston offers budget-friendly buy-to-let houses and modern city-centre apartments, perfect for investors seeking rental income and long-term returns.
Total Population (2022)
Predicted Preston Population (2029)
Average Property Prices by Postcode Area
Preston has a wide range of property values across postcode areas, suitable to all kinds of investors. In the city centre and surrounding areas, the PR1 postcode has an average home price of £171,096. This offers excellent entry-level opportunities for buy-to-let investors. The area’s high rental yields make it a top-performing postcode for those targeting students and professionals.
In PR2, covering Ashton-on-Ribble and Fulwood, average property prices rise to around £219,843, reflecting the family-friendly appeal and suburban lifestyle. Due to modern construction and rising demand from families and professionals, North Preston and South Ribble provide properties with an average price of £300,000 for investors concentrating on new build developments.
House Price Trends and Forecasts
Preston’s house prices have experienced consistent growth over the last decade, with a 14% increase from 2021 to 2023. This continuous rise reflects the growing attractiveness and the outcomes of city’s regeneration projects. Despite this increase, Preston’s average real estate prices remain significantly lower than the national average, so this market is both profitable and easily reachable for investors.
Preston and the rest of the North West are expected to see a 28.8% increase in home prices between 2024 and 2028. This makes Preston a serious candidate for capital expansion, especially in regenerated areas like Ashton-on-Ribble and the city centre. It is difficult for investors to find a better blend of affordability and growth potential.
Growth
Forecast Growth
Below UK Average
Property Types in Preston for Investment
Preston provides a range of property types to suit different tenant groups and investment goals. The city provides many of options to build a strong financial portfolio regardless of your focus—young professionals, students, or families. The most often used house types for investment are broken out here.
Studio Flats
Studio flats are a popular choice among young professionals and students looking for affordable, modern living spaces. In areas like PR1, studio apartments in new developments can be purchased for as little as £90,000, with attractive rental yields reaching up to 8%. These qualities are constantly in demand and easy to maintain. Studio flats are especially popular in the city centre where renters give convenience first priority.
Serviced Apartments
The rise of serviced flats in Preston caters to business travellers and tourists seeking flexible, short-term accommodations. These apartments are especially profitable in the city centre and near the Preston train station. They give investors returns that are 10–15 percent higher than regular long-term rentals. Serviced apartments that are of good quality cost between £120,000 and £200,000, which makes them a good choice for smart buy to let investors.
Off-Plan
Off-plan properties in Preston are becoming more popular as the city continues to grow and people need homes. Investing in these homes can help them get lower prices. Off-plan developments in PR1 and PR2 usually cost around £130,000. Once they are finished, these homes can bring in a lot of money through capital gains and strong rental demand. Off-plan homes near UCLan and key regeneration sites are great for people who want to grow in the future.
New Build Developments
New build developments in areas like North Preston and South Ribble offer modern, energy-efficient homes that appeal to families and professionals. These types of properties often have three or four bedrooms and are priced between £250,000 and £300,000. These are stable investments for the long term. New housing developments are great for investors who want to focus on the mid to high-end rental market as the need for high quality homes is increasing.
Student Property Investment in Preston
Preston is a prime UK location for investing in student properties, with its stable market driven by the University of Central Lancashire (UCLan), which attracts over 30,000 students annually. The city benefits from support by Preston City Council, which prioritises student housing in urban development plans. With affordable property prices and high rental yields, Preston offers excellent opportunities for student property investors.
University of Central Lancashire Masterplan
The University of Central Lancashire is a driving force behind Preston’s booming student property market. UCLan’s ambitious £200 million masterplan includes new, state-of-the-art classrooms, a student center and improved public spaces. The scheme is not only improving the image of the university across the world but is also giving a boost to the local real estate market.
Properties in the PR1 postcode area that are close to the university campus are especially appealing. Strong demand means that renting yields can reach up to 8%. The Masterplan’s focus on modernising the campus and its surroundings is expected to further increase student numbers, making this area a hotspot for long-term investment opportunities.
Investors aiming at UCLan’s area gain from a consistent stream of renters looking for reasonably priced, strategically placed homes. The continuous improvements in campus facilities and transport connections further increase the attractiveness of homes within walking distance of the university.
Top Areas for Student Accommodation in Preston
PR1 Postcode (City Centre and UCLan Area)
Rental properties such as studio flats deliver yields of over 8%, making it the most sought-after location for students.
Ashton-on-Ribble
A suburban haven close to the university, offering rental returns of around 6.5% and potential long-term growth.
Ribbleton
An affordable option for students, with properties averaging £150,000, providing up to 6% returns.
Preston’s Future Market Predictions
Preston’s property market is thriving, driven by ongoing redevelopment projects, infrastructural enhancements, and population growth. These factors make it an attractive destination for investors seeking long-term capital appreciation and reliable rental yields.
Market Growth and Investment Potential
- Property prices in the North West are forecast to rise by 28.8% between 2024 and 2028.
- The £430 million City Deal is set to further boost demand and drive up property values.
Rental Yields and Tenant Demand
- Average rents have increased by 6.3% between September 2023 and September 2024.
- Investors can benefit from sustained tenant demand, underpinned by Preston’s growing population and rising rental enquiries.
Why Choose Flambard Williams for Preston Property Investment?
At Flambard Williams, we help real estate investors to maximise their returns in Preston’s market. From locating high-yield off-market properties to providing you professional guidance on buy-to-let, off-plan and serviced apartments, we support you at every stage.
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