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Reasons to Invest in Preston's Buy-to-Let Property Market
High Rental Demand
When I talk to potential savvy investors, I always bring up how popular Preston is as a rental market. In all honesty, it’s hard to miss. Since the University of Central Lancashire (UCLan) is right in the middle of the city, there are always students looking for good rentals.
There are also recent grads who choose to stay here. Then, there’s Royal Preston Hospital and other big employers, which means there’s also a steady demand from healthcare professionals and local workers.
From what we’ve seen, properties near the university and city centre barely stay vacant, which is music to any landlord’s ears. It’s a reliable market, with low vacancy and stable income, two things we all want in an investment.
Having as the third largest city status in the North West, Preston naturally attracts a diverse tenant base. From students and healthcare professionals to young professionals and students, ensuring a steady demand for rentals.
For those looking to dig into numbers, I always recommend HM Land Registry and the Office of National Statistics data as useful resources to confirm Preston’s growth in population and employment. Both are on an upward swing, which only boosts demand here over the long term.
Affordable Property Values
One of the biggest draws in Preston, in my opinion, is how affordable property prices are compared to neighbouring UK cities like Manchester or Liverpool. In Preston, the average price of a house is about £165,000. This is not nearly as much as the average in the UK, which is £287,000. This means that real estate owners don’t need a lot of cash to begin building a buy-to-let estate.
This low entry price lets people diversify their property investments more easily. Instead of sinking everything into a single property, you might be able to snag two or three in Preston.
With the city’s ongoing growth and development projects, the chance for capital appreciation over the years is real. If you’re looking for an attractive place where your money can stretch further, Preston’s price point offers a great opportunity to start small and scale smartly.
High Average Rental Yield
Now, let’s talk rental yield in Preston, which is what most investors keep their eyes on. Preston has some seriously attractive returns, with average yields typically sitting between 6-8%.
In certain areas, like Ashton-on-Ribble and Ribbleton, we’ve seen even higher returns thanks to the balance of lower property prices and high rental housing demand. It’s these areas that often give the best bang for your buck in terms of rental income.
When guiding new property investors, we always point out how important it is to get a strong yield if you’re aiming for steady cash flow. With demand from students, healthcare workers, and young working professionals, properties here rarely go empty.
Focusing on a neighbourhood with a proven good rental yield can make a big difference in meeting those cash flow goals from day one.
Attractions and Amenities
Preston has really come into its own in recent years, and I’d be lying if I didn’t say it’s one of my favourite parts of the North West. The city centre is packed with shopping, dining, and entertainment options, while beautiful spots like Avenham Park give residents green space right at their doorstep. Whenever I scout properties, I make a point to consider proximity to these types of amenities because they’re a huge selling point for tenants.
Then there’s the Guild Wheel cycling route, which is popular with people who like to stay active. People who are willing to pay a little more for a better quality of life are drawn to places like this. These kinds of amenities aren’t just nice to have; they’re reasons why people choose one place over another. This makes it easy to keep occupancy rates high and rents low.
Great Transport links
Preston has great travel options, that’s for sure. It’s easy for workers to get to and from work at Preston Railway Station, which has direct trains to Manchester, Liverpool, and London. From what we’ve seen, this connectivity really drives demand, especially among tenants who want the flexibility to work or study in nearby cities without needing to live there.
Properties near main transport routes like the M6 motorway or within easy reach of buses always seem to attract tenants quickly. For young professionals, convenience and quick commutes are huge factors, and they’re often willing to pay a premium for that access. If you’re looking at buy-to-let properties in Preston, being close to public transport can be a strong selling point.
Major Regeneration Projects in Progress
Preston’s regeneration projects are driving serious growth, backed by a massive £434 million City Deal involving Preston City Council, Lancashire County Council, and the UK government. Key developments include the £200 million Preston Western Distributor Road, which improves access to the M55 and increases buy-to-property attractiveness in North West Preston, making it more appealing to tenants and commuters.
Preston Markets Quarter in the centre has undergone £50 million in improvements, making it a vibrant shopping and dining destination. Furthermore, the Harris Quarter Towns Fund, which received £20.9 million in government financing, is revitalising cultural institutions such as Winckley Square Gardens and the Harris Museum.
It’s a good time to invest in Preston’s buy-to-let market because these projects are expected to increase the prices of buy-to-let property and the desire for rental homes.
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Type of Properties in Preston
In Preston, you’ll find a diverse range of property types, each catering to different tenant demographics and property investment strategies. Here is a list of some important types of property:
Detached Housing
Families in Preston who want room, privacy, and a little space from their neighbours should look at detached homes. More often than not, you’ll find these in suburban areas with bigger lots, like Fulwood and North Preston. Sure, they’re pricier—averaging around £308,000—but in my experience, you’re getting long-term tenants who appreciate quiet and outdoor space.
Semi-Detached Housing
Semi-detached homes are what I’d call the “sweet spot” in Preston’s market. They strike a balance between space and affordability, making them popular with a wide range of tenants, from professionals to small families.
Places like Ashton-on-Ribble and Bamber Bridge have a good stock of these, with average house prices around £191,000. What I like about semi-detached homes is they usually have lower maintenance costs than detached properties but still offer a comfortable living space. For landlords, they’re a solid choice if you’re aiming for lower upfront costs but still want decent rental demand.
Terraced Housing
There are a lot of affordable housing choices in Preston, especially in areas like Ribbleton and closer to the city centre. The average property price of these homes is £135,000. This makes them great for new investors or those who want to grow their business without spending a lot of money. From what I’ve seen, these homes are popular with students and young workers who want to save money. If you want to make steady returns on your money without having to put up a lot of money at first, you should look into Preston terraced houses.
Flats
Flats, especially those in PR1 near Preston city centre, are a versatile option. They attract students, young professionals, and sometimes even short-term tenants, given the convenience of the location. With an average price of £93,000, they’re a relatively low-cost entry point with decent returns.
Flats often have shared amenities that tenants may like, especially if they don’t want to take care of a big area. Flats in the centre of Preston are a good investment if you want to rent them out for short periods of time or to students.
If you’re looking to invest in student properties or short-term lets, there’s one property we’d strongly recommend considering:
Preston's Guildhall Gardens
Located in the historic Winckley Square Conservation area, Guildhall Gardens stands out as one of the most attractive buy-to-let properties in Preston city centre.
This development offers a perfect mix of traditional charm and modern amenities, appealing to renters who appreciate Lancashire’s vibrant culture. With Preston’s ongoing revitalisation and the local economic growth, Guildhall Gardens is an ideal choice for buy-to-let investors looking to attract professionals and couples.
Key Property Highlights
£766 pcm
20%
Q3 2023
£2,500
- Located in the heart of Winckley Square, one of Preston’s most prestigious areas.
- Comprising 32 one-bedroom and 3 two-bedroom apartments with stylish, modern interiors.
- Walking distance to UCLan, Market Hall, and Fishergate Shopping Centre.
- Perfectly located just 0.5 miles from Preston Train Station, 0.2 miles from Miller Arcade, and 1 mile from Avenham Park.
- Addresses the increasing demand for high-quality rental properties in Preston’s buy-to-let market.