Table of Contents
An Overview of Preston’s Property Market
If you’re considering investing in Preston’s real estate market, let me tell you: it’s a hidden treasure. Preston has a fantastic blend of old-fashioned charm and modern amenities, and the diversity of houses reflects this.
There are several different types of homes to choose from, from Victorian terraced houses to slim new flats. This gives you a lot of options for your business goals. Another big draw is where it is.
The city is great for commuters, students, and young people because it’s just a 45-minute drive to Manchester or Liverpool. These groups are what make the area popular. When I looked at Preston for the first time, I was surprised that it wasn’t already on the mind of every investor.
Prices of Homes in Preston on Average
Preston, Lancashire really shines when talking numbers. The Office for National Statistics (ONS) says that the average price of a house in Preston in August 2024 is around £169,000.
Source: ONS
And seeing the UK average price of £293,000 makes it obvious why this city is so popular with investment. Even first-time buyers can get a foot on the ladder here, with entry-level properties costing around £140,000.
For investors, this is golden. A lower average price means a lower upfront cost, which leaves room to build a diverse portfolio or renovate and add value. Also, rental yields are high in Preston, so you can expect a steady income while the house goes up in value over time.
However, if you’re worrying about the dip in property prices, it’s important to note that such fluctuations are natural in any healthy property market.
The graph above shows how Preston often aligns with more general trends observed in the North West, England, and Great Britain, therefore preserving a strong posture even during times of economic uncertainty.
Why Now is the Perfect Time to Invest in Preston's Housing Market
The graph below shows how house prices, inflation rates, and mortgage rates have changed in the last few years in the UK. House prices have changed a lot because of inflation and changes in mortgage rates. You can see that the prices go down during times of high inflation and interest rates, but then they go back up and grow again.
One important thing here to note is the stability of property prices.
While there are fluctuations, the overall trend is still upward. House values fell during the 2008 financial crisis but then progressively rose once more, finally exceeding past highs. Comparably, house values slowed when mortgage rates and inflation climbed in 2022.
However, they have begun to stabilise, resulting in another purchasing zone, as indicated in the graph.
This suggests that now is an excellent time for investors to buy property. Now is a fantastic moment to buy a home at a low price because prices are stable, inflation is low, and there are opportunities in important buying areas.
Historically, buyers who responded promptly when the market changed gained a lot of money when the market rebounded and prices began to increase again. Investing right now in regions like Preston, which are expected to grow significantly, allows you to earn both rental income and long-term capital gains.
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.
Cash Needed
Rent per month
Limited Units
£185k
Year-on-Year Changes in Preston’s Housing Market
Here’s the kicker: Preston house prices have grown by 4.7% if we talk about annual change, which is right in line with the North West region. This isn’t the kind of market that skyrockets overnight, but that’s actually a good thing. Stability is key, especially if you’re investing with retirement planning in mind.
I’ve seen some markets fluctuate wildly, but Preston holds steady, and that makes it less risky if you’re in this for the long haul. Whether you’re buying to rent, flip, or simply let the property appreciate over time, you’re working with a market that’s on an upward trend.
By analyzing sales volumes across different property type, the available data provides a clear comparison of market trends, helping investors identify the most promising opportunities in Preston’s housing market.
Price Changes for Different Types of Preston Properties
Let’s break it down. Not every Preston property fulfils the same purpose. With an average price of £302,500, statistics from August 2024 indicate that independent houses are the most popular kind of residence. They are perfect for families or professionals who want a room and are willing to pay for it.
For individuals who want to rent near city centres, semi-detached homes, which cost an average of £197,500, offer a low-cost option that balances affordability and comfort even if terraced dwellings with an average price of £133,500 are a low-cost alternative. Given flats’ average of £82,500, they are a sensible and profitable investment option.
Source: home.co.uk
While detached, semi-detached, and terraced homes are excellent options for those seeking property to live in, flats and apartments on sale are great for investors. Preston’s newly built apartments attract young professionals and students with their stylish interiors, energy-efficient features, and sensible placement.
Modern appliances, open-plan designs, and safe parking make them rather attractive, which lets landlords draw in quality tenants ready to pay more.
Prime Property Investment Opportunity in Preston
Here are some projects we’d strongly recommend if you’re considering investing in properties around Preston:
- Preston
Deposit
.
Yield
Property Price
.
Preston’s Rental Market Over the Past Year
Preston’s rental market has been on a steady rise, and if you’re thinking of investing in buy-to-let properties, this is great news. Recently, there has been a greater need for rental homes.
This is due to a mix of young workers, UCLan’s more than 35,000 students, and families seeking cheap houses on sale in Preston. Overall, I’ve seen rents go up by about 6%, which is a big deal if you’re looking for homes with good rental yields.
Unlike more static development patterns observed in larger areas including the North West, England, and Great Britain, rents in Preston have showed a clear upward tendency in recent years.
Preston’s market has pushed forward, particularly since early 2023, although rental prices in these places have stayed mostly steady or modestly rising.
This difference highlights the unique demand and growth potential in Preston, making it a compelling option for investors looking for higher rental yields and capital appreciation.
Source: ONS
Take the city centre, for example. A year ago, two-bedroom flats near the train station were rented for around £650 a month—now it’s closer to the average price of £700.
Suburbs like Fulwood and Ashton-on-Ribble have also seen rising interest, especially for semi-detached properties. These areas are ideal for investors aiming to attract long-term tenants, as they offer good schools and easy access to transport links.
Average Rental Prices Across Preston in 2024
If you’re wondering what to expect in rental income, here’s the current picture: one-bedroom flats typically fetch £550–£600 per month, while two-bedroom properties range from £650–£750.
Larger family homes, like three-bedroom semis, command around £900–£1,200 depending on location. Areas like Penwortham or Broughton tend to be on the higher end due to their family-friendly appeal and green spaces.
Source: ONS
For investors, this kind of balance—affordable purchase prices with decent rental returns—makes Preston a top choice. Usually, the rental yields are between 5 and 6 percent, and in some areas, they’re even higher. This is especially appealing if you want to make money without doing anything while the property is rising in value.
Initiate a powerful sequence of your property growth and reinvestment.
Initiate a powerful sequence of your property growth and reinvestment.
Unleash how successful investors build wealth, reduce financial stress, and achieve financial freedom.
Why Preston is Attracting New Investors
So, what draws so many investors to Preston? It’s not only the low housing costs (though that’s a significant lure).
The city is experiencing significant regeneration, with projects like the £434 million Preston City Deal investing millions of pounds in new infrastructure, housing, and commercial areas. This type of investment provides jobs and brings people to the area, both of which increase property demand.
A lesson I learned the hard way in another city was underestimating the impact of economic growth on property values. Preston’s story is different. Employment rates are climbing.
In the year ending December 2023, the employment rate for people aged 16 to 64 rose to 80.4%, which was higher than the North West’s average of 73.8%. In addition to this rise, new businesses have opened and the university is continuing to grow, all of which contribute to the city’s fast growth.
Whether you’re targeting rental income or long-term appreciation, these factors make the city a smart bet.
But, if you’re ready to start investing but aren’t quite sure how much you’ll need or how soon you can reach your financial goals, our wealth-building calculator can help.
In just a few minutes, with a few quick details, you’ll get a personalised investment plan showing the exact amount and timeline needed to reach your goals.
Whether that’s financial freedom, a steady passive income, or even millionaire status, using this wealth-building calculator can provide you with a clear path forward.
Strategically Handpicked Properties for Optimal Yield and Capital Appreciation
House Price Breakdown by Preston’s Key Areas
There are different price ranges for homes in Preston, which you should think about before you decide to move. Fulwood’s average house price is roughly £240,000, so it is among the most expensive areas in Preston for residence.
The schools are good, thus you may spend time with your family there in a peaceful environment. However, homes in the city centre can be bought for as little as £120,000, which is great if you want to bring in students or young workers.
Penwortham and Broughton are also worth considering. Both offer a mix of modern developments and traditional homes, with average prices ranging from £170,000–to £250,000.
Here, especially on homes that families or those who travel like, investors often find great discounts. If you want to maximise your income, concentrate on areas seeing a lot of development or those with great rental demand.