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If you really want to invest in real estate, you should check out Preston. It is in the middle of Lancashire and has a great mix of things that owners love: good rental yields, a lifestyle that’s great for renters, and a strong chance for property values to rise.
What’s not to like? From its deep history to a lively city’s centre and loads of green spaces, Preston has that magic combination of city buzz and countryside peace. Let’s break down why this place is worth your attention.
Where is Preston?
The city of Preston is right in the middle of North West England. It is on the north shore of the River Ribble. It’s very easy to get to big towns like Manchester, Liverpool, and Blackpool, which is a big plus for people who want to commute.
It’s close to both Manchester and Liverpool airports and the M6 highway, making it a good choice for people who need to move a lot, whether for work or for fun.
And the rail links? Excellent. With the West Coast Main Line, it only takes a little over two hours to get to London. For young professionals and people who work from home and want freedom and ease, that’s a big plus.
I have to say that the transport links in Preston were the first thing that caught my attention. Tenants value that kind of accessibility, and so should you.
A Brief History of Preston
Preston’s history adds a lot of character to the city, and trust me, that’s something tenants notice. The name itself—from “Priest’s Town”—hints at its religious roots.
But the real kicker is how much of that history is still visible today. People are interested in the Harris Museum, Moor Park, and the history of the old Preston Market. Steeped in rich history, Preston’s heritage is visible in landmarks like the Harris Museum and its centuries-old market.
Also, the market has been open since 1179! It’s changed over time, but it’s still going strong. Preston was a cloth hub during the Industrial Revolution, and you can see the effects of that wealth in the way it was built.
If you’re thinking about short-term rentals or Airbnbs, these historical touches are gold. People love staying in a place with a story.
Why It Is Great to Live in Preston
What makes Preston so liveable is its balance. You’ve got modern apartments right in the city centre for professionals, but also family homes in quieter areas.
After that, there are parks. Parker Park and Moor Park are real gems. They’re great for camping, jogging, or just getting some fresh air, which is exactly what makes renters happy and keeps them coming back. Preston’s Miller Parks are a local treasure, offering scenic green spaces and tranquil retreats for residents and visitors alike.
Sport is another big deal here. Preston North End F.C. has a loyal following, and then there’s the Guild Wheel, a 21-mile cycling and walking route. Whether people are into fitness or just weekend strolls, Preston delivers. It’s those little lifestyle perks that can make or break an area for renters. Preston boasts state-of-the-art sports facilities, catering to football fans, fitness enthusiasts, and recreational players.
Also, the city’s centre is very bustling. You can find both well-known stores on the high street and unique, one-of-a-kind shops. For fresh food and a sense of community, visit Preston vibrant Market. Ornamental gardens in Preston, such as those in Avenham Park, add a touch of elegance and tranquility to the city.
There are many best places to live in Preston, from cosy coffee shops to restaurants serving food from around the world. Families, college students, older people, and young workers can all find something they like in this city. With numerous parks like Moor Park and Avenham Park, Preston provides plenty of opportunities for outdoor relaxation.
And here’s the kicker: property prices. They’re still affordable compared to Manchester or Liverpool, meaning you can snap up a great deal now and ride the wave of capital growth. Preston’s a bit of a hidden gem, but it won’t stay that way forever. If you’re looking for an investment that’s both smart and future-proof, this is it.
Property Market in Preston
Preston’s property market is one of the most exciting in the North West. Whether you’re after steady rental yields, long-term capital appreciation, or properties you can convert into HMOs (houses in multiple occupations), Preston has it all.
And here’s the good news: it’s still more affordable than Manchester or Liverpool, so your money goes further here. That affordability makes it a smart choice for first-time investors or those looking to expand their portfolio.
Most Sought-After Areas in Preston
Some of the most-wanted places to live are Fulwood and Ashton-on-Ribble. Fulwood is a great place for families to live because it has great schools and other services.
It also has the right suburban feel. On the other hand, Ashton-on-Ribble has a charming riverside setting and is very close to the city’s centre, which makes it appealing to students and young workers. The North Bank of the River Ribble is a picturesque area that combines residential charm with natural beauty.
The city centre is also a popular place now that it’s been fixed up. Imagine sleek flats and a busy nightlife. For investors, this means that there will always be people looking to rent and even short-term renters, which can be very profitable if done right.
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
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Types of Property in Preston
Preston’s housing options are as varied as its residents. There is something here for every investor, from those who like classic terraced homes to people who like sleek new builds.
Terraced Homes and HMOs
In Preston, especially in places like Deepdale and Ribbleton, terraced houses are very common. These homes are perfect for making HMOs, which are very popular with college students and young workers.
Done right, they can give you some seriously good rental yields. Just don’t forget to check local council rules—HMO licensing is a must in certain cases.
To learn more about the HMO licensing process read: HMO Preston: Top Benefits & Licensing Guide
Apartments and Flats
If you’re more about low-maintenance properties, apartments on sale in the city centre are the way to go. Places near the River Ribble or UCLan (University of Central Lancashire) tend to attract steady tenants, whether they’re students or professionals.
Bonus: these flats also work well for short-term rentals, like Airbnb, if you want to diversify your income streams.
New Developments and Purpose-Built Properties
In Preston, there are several new homes being built, and you should check them out. Developers have a good idea of what renters want, like parking, high-speed internet, and even common areas.
People who love modern conveniences and amenities, like young workers and students, are especially interested in these properties.
Renting and Letting Property in Preston
There’s a good reason why Preston’s rental market is active. The majority of tenants here pay about £687 a month in rent as of late 2024. It’s about 6% more than the year before. That means a lot of people want it, including UCLan students and people who work in the city.
Source: ONS
If you’re renting out a property, location is everything. Homes near transport links, good schools, or major employers tend to get snapped up quickly. And if you’re interested in HMOs, look for properties near the university or the city centre—that’s where people want to live.
You should also look into short-term lets. As Preston becomes more well-known as a place to go for fun and events, websites like Airbnb can help you reach a whole new group of people. It’s yet another reason why investing your money into Preston is a great idea.
Featured Properties in Preston for Investment
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Types of Residents in Preston
We’ve seen for ourselves how different Preston’s residents are, which is great for investors. Families like the sense of living in the suburbs in places like Fulwood, while students and young workers like the energy and ease of the city centre.
Every year, thousands of students come to UCLan, which makes the rental market strong, especially for HMOs.
On the other hand, retirees tend to like neighbourhoods that are quieter and have easy access to green places and medical care. This mix of age groups and income levels ensures a steady demand for all types of properties.
Cost of Living in Preston
The low cost of living in Preston is something we always talk about. This low cost of living makes the city appealing to renters and gives owners an edge in the market.
There are lots of places to go and things to do in Preston, from clubs and restaurants to outdoor sports. Still, how much money you spend may vary.
For instance, cooking at home will save you a lot of money compared to eating out every night. Spending smart will help you have fun here without going over budget.
Here is a list of what you might pay each month:
- Rent: £300 - £692 per month
- Food and Groceries: £100 - £160 per month
- Gas and Electricity: £120 - £180 per month
- Internet & Mobile Phone: £50 - £100 per month
- Transport (Buses, Trams, Trains): £30 - £60 per month
- Laundry: £20 - £40 per month
- Stationery and Textbooks: £20 - £30 per month
With some thoughtful budgeting and smart spending, tenants can make the most of Preston’s lifestyle without overspending.
Transport Links
We often say that Preston’s transport links are one of its strongest assets. Along the West Coast Main Line, the city is a major hub. Trains to London take just over two hours. It’s also easy for commuters to get to Manchester, Liverpool, and Birmingham because it has daily services to those cities.
Motorists can easily get to the M6, M61, and M55 highways. For foreign travel, Manchester and Liverpool airports are less than an hour away. Locally, the Guild Wheel cycle route and reliable bus services keep the city well-connected. Convenient access to nearby airports like Manchester and Liverpool enhances Preston’s connectivity for global travellers.
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Amenities in Preston
Preston has everything tenants could need, which is a big reason why we recommend it. The city centre has all large retail outlets, small shops, and the Fishergate Shopping Centre. For fresh food and unique items, Preston’s Market is a local choice.
A lot of choices are available when it comes to eating. It’s possible to find a cafe run by a family or a foreign restaurant. Sports enthusiasts love Deepdale Stadium, while families appreciate the excellent schools, healthcare facilities, and parks. The bustling shopping centres in Preston, including Fishergate, offer a mix of high-street brands and local boutiques.
Attractions in Preston
We always encourage investors to explore Preston’s attractions because they play a big role in tenant appeal. The Harris Museum and Art Gallery is a cultural gem, while the Guild Wheel and River Ribble offer outdoor adventures for nature lovers.
Outdoor activities abound in Preston, from cycling along the Guild Wheel to exploring the Ribble Valley countryside. While not local, Preston residents frequently enjoy trips to Wembley Stadium for major sports events and concerts.
There are events, shopping at Preston’s Market, and fun things to do in the city centre all the time. People continue to move to and invest in Preston because it has a mix of history, green areas, and modern conveniences. The city really does have everything. The city is known for its exciting happening, from cultural events to sports tournaments and community festivals.
Education in Preston
Schools and Colleges
As real estate agents, we know that schools are a big deal for residents when they’re looking for a place to live, and Preston doesn’t let them down. Many great schools are in the city, including the well-known Fulwood Academy and Archbishop Temple School.
For families, proximity to good schools can be a major deciding factor, and we always highlight this to investors targeting the family rental market.
Preston also has an impressive selection of colleges, including Preston’s College, which offers a mix of vocational and academic courses tailored to local employment needs. From our experience, properties near these educational institutions tend to attract stable, long-term tenants, making them a smart investment choice.
The University of Central Lancashire (UCLan)
The University of Central Lancashire (UCLan) is a must-see when we talk about education in Preston. It’s great for the city because it attracts over 30,000 students every year and has high ratings for job placement and student happiness.
We’ve seen firsthand how a thriving university creates consistent demand for rental properties, especially near the campus. Whether it’s long-term student tenants or short-term academic visitors, properties in these areas are always in demand.
Demand for Student Housing
The student population in Preston creates a constant need for housing, and we’ve guided many investors toward capitalising on this student property investment opportunity. Houses in Multiple Occupations (HMOs) that are good for students are common in places like Ribbleton and Ashton-on-Ribble.
In these places, well-run HMOs can get rental yields of over 8%, which we think makes them a great choice for investors looking for high returns. When advising clients, we often tell them the importance of creating high-quality, compliant student housing to ensure steady occupancy and reliable income.
Sustainability and Green Living in Preston
We’ve noticed a growing trend toward sustainability among tenants, and Preston is at the forefront of this movement. The City Council’s Climate Emergency Action Plan, aiming for carbon neutrality by 2030, is a key part of this effort.
Green spaces like Moor’s Park and the Guild Wheel—a 21-mile cycling and walking route—are not just local attractions; they’re also a major draw for tenants who prioritise eco-friendly living.
Students and workers who wish to live in the city but also like the outdoors typically select residences close to these green places.
We constantly advise investors to visit these places. Still, another crucial element is energy-efficient living. New homes in Preston sometimes include smart energy systems, solar panels, and premium insulation.
These homes lower energy expenses, attract eco-aware renters and increase property value over time. Investors must now prioritise sustainable developments since it’s a wise, long-term move.
Preston Compared to Nearby Cities
In our conversations with investors, we often compare Preston to nearby cities like Manchester and Liverpool. What stands out most is its affordability.
Although Liverpool sits at £201,000 and Manchester’s average house price is around £265,000, Preston’s average of £169,000 provides far better value. This reduced entry cost lets investors maximise profits while still gaining from a vibrant rental market.
Preston appeals to renters as an alternative for more major cities. It’s more subdued, less crowded surroundings offer a laid-back way of life without compromising access to metropolitan conveniences.
Many renters view it as the ideal middle ground, and we have found that this makes Preston’s apartments extremely sought-after.
Economic Growth and Future Development in Preston
Preston clearly shows economic growth in various important spheres. Over £430 million from the Preston City Deal has been invested into the city to support significant infrastructural, business, and housing development projects. This degree of investment is transforming Preston and generating a lively scene for companies as well as people.
Recent statistics demonstrate Preston’s strong economic performance:
- Gross Value Added (GVA): In 2021, Preston contributed £4.5 billion to the UK economy.
- Business Growth: The city is home to over 5,700 businesses, reflecting a dynamic and expanding local economy.
- Employment: As of 2023, Preston has 65,000 working residents and 73,600 economically active individuals.
- Housing Development: Preston hit a record 1,405 housing completions in 2022/23, including 433 reasonably priced homes.
Further demand for property is being driven by major redevelopment projects including the building of new residential and commercial spaces and the revitalisation of the city centre.
The growth of Preston’s tech and creative industries is also attracting a younger, skilled workforce, making it an ideal market for professional rentals. For investors, this is a prime opportunity to take advantage of long-term growth potential as Preston continues to thrive.
Regulations and Legal Requirements for Property Investors in Preston
Investors who want to make money need to know the rules in their area. In Preston, for example, high-rise apartment building owners need to get certain licences to make sure their buildings meet safety and quality standards.
People who want to turn terraced houses into HMOs need to think about these rules when they are planning their investment.
One more important area of focus is the energy economy. The city of Preston follows the government’s Minimum Energy Efficiency Standards (MEES), which say that all homes must have an Energy Performance Certificate (EPC) grade of at least E.
New build developments in Preston often go beyond these limits, which makes them especially appealing to renters who care about the environment.
Conclusion
Preston is a great place to invest in real estate because it is cheap, renting properties are in high demand, and the city has a lot of room to grow. People who want to rent here include professionals, couples, and students. It’s a great location, long history, modern conveniences, and a wide range of real estate options.
With a focus on sustainability, ongoing economic growth, and great travel links, Preston is set up for long-term success. Preston is a great choice for investors who want to get good returns and take advantage of a vibrant city with a lot of untapped promise. Preston boasts a perfect blend of vibrant urban life and serene countryside living, making it a top choice for residents.
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