Preston Property Investment: Key Factors Driving Buy-to-Let Property Investment Market
New Homes Development
Transportation Investment
Rise In Population
More Yield In Short-Term Rentals
Preston has quickly become one of the best places in the UK to invest in property as it is affordable and has a lot of room for capital growth and renting income.
This lively city is right in the middle of the Northern Powerhouse, which is bringing in smart investors looking for buy-to-let properties. The real estate market here is great for investors who want to build a varied portfolio as it has both new studio apartments and traditional terraced houses.
The city’s regeneration plans and prime location make it a great choice for buy-to-let investors. If you want to invest near the University of Central Lancashire in Preston, there are a variety of student homes and flats that you can choose from. Its popularity also comes from the fact that it is a travel centre with great transport links to Manchester, Liverpool, and the Lake District.
At Flambard Williams, we help investors like you find top property opportunities in Preston. Invest with us to grow your portfolio and make the most of Preston’s thriving real estate market.
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Buy to let Investment Properties In Preston
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Why Invest in Preston?
A Thriving Economy
Preston stands at the forefront of economic growth in the North West, benefiting from the government’s Northern Powerhouse initiative and ambitious local development plans. Major companies like Royal Preston Hospital, the University of Central Lancashire (UCLan), Lancashire County Council, BAE Systems, Booths Supermarkets, and the retail and logistics sectors are strong supporters of the area’s growing economy.
Contributing over £1 billion in Gross Value Added (GVA) annually, Preston’s role as a regional economic powerhouse continues to grow. Its valuable position in Central Lancashire creates stable job opportunities, which supports long-term rental demand and investment potential in real estate.
The city’s growth is helped by its significant employers. Royal Preston Hospital, for example, has more than 7,000 employees, and UCLan brings in over £200 million a year for the local economy through staff salaries, student spending, and co-ordinated regional projects.
The notable annual spending in local supply chains supports Preston’s economic development even further. The Preston Western Distributor Project, for example, shows a significant dedication to local economic involvement by allocating 45% of its project expenditure within a 25-mile radius of the site and another 37% spent between 25 and 100 miles.
Despite its rapid development, Preston remains highly affordable, with an average house price of £172,000 as of September 2024, well below the UK average of £291,828. This affordability, combined with the city’s robust economic momentum, positions Preston as an attractive and strategic hub for property investment.
Rising Population
Driven by its appeal to young professionals, families, and students equally, Preston’s population is gradually increasing. With around over 30,000 students enrolled each year, the University of Central Lancashire creates regular demand for student accommodation in Preston.
Young professionals have also arrived in places like Ashton-on- Ribble and the city centre, which increases demand for new homes and flats.
According to the Office for National Statistics (ONS), Preston’s population increased by 5% between 2011 and 2021. More recent estimates indicate a growth rate of 2.6% between mid-2021 and mid-2022, which is higher than the average growth rate of 0.9% over the previous decade.
Although specific projections for the next five to ten years are not easily accessible, the recent acceleration in population growth points to a continuously rising trend. Preston appeals to buy-to-let investors since this growing population base reflects strong rental demand.
Connectivity and Transport Links
Preston is advantageously situated with outstanding access to big UK cities such as Manchester, Liverpool, and Birmingham.
With regular trips to London in 2 hours 14 minutes, Preston railway station is a main hub in the North West. For commuters and professionals, the city’s proximity to the M6 motorway and other key routes enhances its desirability as a place to live and invest.
Moreover, ongoing transport upgrades as part of regeneration projects in Preston city centre are improving accessibility and boosting the local property market. Buy-to-let properties near transport and local amenities are especially profitable since they appeal to both professionals and students looking for a convenient lifestyle.
60%
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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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For people who want to buy apartments and attract young workers, Guildhall Gardens is a great choice. This building is close to the centre of Preston, so renters can quickly get to the shops, cafes, and nightlife in the city centre. The transportation links are also great.
We’ve found that young professionals and recent grads love the vibe here, and the flats come with modern touches that make them extra appealing. Guildhall Gardens also offers secure entry and nearby parking, which is a big plus for renters who want that extra sense of security and convenience. It’s a property that you should definitely check out if your aim is to own a flat with high rental demand and a little empty time.
- It is in Winckley Square, a well-known part of Preston that draws both locals and tourists.
- Features 32 apartments with one bedroom and 3 units have two bedrooms. All of the furnishings are modern and stylish.
- Conveniently based near UCLan, Market Hall, and Fishergate Shopping Centre.
- Only 0.5 miles from Preston Train Station, making it easy for travellers and workers to get to and from work.
- Large demand for high-end serviced flats because of Preston’s booming economy and revitalisation.
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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.
£430 Million 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 Investment Programme
A big project that focusses 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 Plan
Long-term, multibillion-pound spending 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 £200 Million 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.
Investment for infrastructural upgrades
Green Space Expansion
New Jobs
UCLan Investment
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.
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Preston’s Growing Tenant Base
Driven by a combination of professionals, families, and students, Preston’s renter base is fast growing. With demand for a variety of property types—from modern flats in the city centre to family houses in the suburbs—this diversity produces a consistent and dependable rental market for investors.
Young professionals are drawn to the city by its rising job prospects and first-rate transport connections. Major companies such as Royal Preston Hospital and the University of Central Lancashire bring a lot of qualified people into the city who seek rental houses close to business centres such as Ashton-on- Ribble.
Conversely, families are looking for homes in places like South Ribble and North Preston where new building projects provide room and reasonably priced choices.
With at least two bedrooms rented by over 60% of Preston households, buy-to- let investors concentrating on bigger homes have a strong market. Preston’s 8.4% rise in population between 2011 and 2021 strengthens this tenant base.
This population growth is driving rental property demand, especially in developing areas. Rental enquiries in the PR1 postcode, which contains Preston city centre, have increased 18% year-on-year, showing demand for buy-to-rent properties.
The city’s ongoing developments aim to meet this demand, but the pace of population growth ensures a consistent supply gap for savvy investors to capitalise on.
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.
Data from: propertydata.co.uk
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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Property Prices in Preston
For investors looking to maximise both rental income and long-term capital appreciation, Preston’s real estate market is among the most reasonably priced in the UK, providing exceptional value. Preston’s varied affordable property prices offer a range of investment choices, from reasonably priced buy-to-let houses to upscale modern apartments in the heart of the city.
Data from: propertydata.co.uk
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.
Average Property Price in PR1
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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.
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.
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Student Property Investment in Preston
Many people want to rent out student apartments in Preston, which is one of the best places in the UK to invest in student properties. The University of Central Lancashire (UCLan) is in the city and gets over 30,000 students each year. This means that the market for studio flats and housing for students is stable.
The support from Preston City Council makes this market even better because they are involved in projects that improve the local housing market and make sure that student housing stays a top priority in plans for urban growth. For investors looking to rent to students, Preston is a great place to live because the prices are low and the renting returns are high.
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
Preston presents a number of great locations with special value for student property investment. The most sought-after location for student accommodation is the PR1 postcode, which comprises the city centre and surrounds of UCLan. Here, rental properties like studio flats create strong yields—often more than 8%—because of the ongoing demand.
Another highly praised place to rent for students who seek a suburban, quiet life but still near to university is Ashton-on- Ribble. The region provides several reasonably priced homes for sale to buy-to-let investors. Ashton-on- Ribble’s rental returns, with prospective long-term capital appreciation, run roughly 6.5%.
Ribbleton is becoming an appealing spot to spend, and it has properties that are easy on the wallet. These properties are popular with students who want to rent somewhere cheaper than the city centre.
Ribbleton’s average home price is around £150,000. This means that buyers can get into the market with less money and still get good returns of up to 6%. The high demand for student housing in Preston, along with the city’s low cost and busy university community, makes it a great place for investors to diversify their portfolios.
Preston’s Future Market Predictions
Supported by continuous redevelopment projects, infrastructural improvements, and population expansion, Preston’s property market is showing increasing trend. Based on the most recent statistics, property prices in the North West are expected to rise by 28.8% between 2024 and 2028, so Preston is becoming more and more appealing for long-term capital development.
The city’s £430 million City Deal is expected to further boost property demand and prices. Furthermore, with average rents rising by 6.3% between September 2023 and September 2024, investors can expect strong yields and sustained tenant demand in the future years.
Emerging areas like Cottam, Ribbleton, and Ashton-on-Ribble are particularly well-positioned for future growth, with affordable houses available now that have the potential to appreciate significantly. For investors seeking stable markets with high growth potential, Preston ticks all the boxes.
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Increase in Home Prices
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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