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Preston’s Growing Potential for Short-Term Let Investors
Preston is rapidly gaining recognition as an excellent choice for short-term rental investments, attracting a diverse population of approximately 7 million visitors annually. This influx includes business travellers, tourists, and students from the University of Central Lancashire (UCLan), all contributing to the increasing demand for flexible accommodation options.
More guests are choosing serviced apartments and fully furnished rentals over traditional hotels due to the comfort, privacy, and flexibility they offer. This shift reflects a broader preference for home-like environments, making temporary rentals an appealing choice for visitors seeking convenience during their stays. Investors can enjoy peace of mind with secure, well-maintained properties in prime locations across Preston.
The strategic location of Preston, nestled in central Lancashire and close to major cities like Liverpool and Manchester, enhances its attractiveness for short-term lets. Visitors can easily explore these vibrant urban centres while enjoying more affordable lodging in Preston. This location advantage positions the city as a cost-effective base for travellers, allowing them to benefit from easy access to major attractions without the high prices typically found in surrounding cities.
Preston’s economic landscape is also showing promise, with projections from Lancashire County Council indicating a consistent annual growth rate of about 1.4% over the next decade. This growth is fueled by increased business investments, new retail developments, and improved transport links, driving demand for quality housing.
As more people move to the area for work, the need for good housing continues to rise. Notably, the presence of UCLan, with over 38,000 students, provides a reliable source of short-term renters, including visiting lecturers and family members who often require accommodations for extended periods. Given these factors, Preston presents an appealing opportunity for real estate investors seeking to capitalise on the growing demand for holiday rentals in a thriving market.
Advantages of Investing in Short-Term Let in Preston
Higher rental yields than long-term lets
In Preston, holiday rentals often bring in more money than long-term renters. This place has an average renting yield of 4.4%, and in some places, like PR1, it can go as high as 7.5%. That’s well above the UK average, making it a strong choice for investors looking to maximise their earnings.
Seasonal Flexibility for Investors
One great thing about holiday rentals is that you can change the rental rates when the area is busy or when there are events. For example, more people need places to stay in Preston during college graduations, concerts and sports events. This means you can raise your rates and make more money during these busy times.
Tax Benefits and Financial Incentives
Short-term lets in the UK that qualify as Furnished Holiday Lettings (FHLs) offer a number of tax advantages that are hard to ignore. FHLs allow investors to claim full mortgage interest relief, along with capital allowances on furnishings and equipment, which can be a big help come tax time.
Also, FHLs may be eligible for Business Asset Disposal Relief, which could lower the amount of Capital Gains Tax they have to pay when they sell the property. Due to these tax breaks, temporary rentals become even more attractive for investors, helping them get the best returns and lower their tax bills on Preston properties.
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Which Properties Would be Best for Your Investment?
Here are some expert-recommended properties that promise strong rental yields and high tenant demand:
Preston's Guildhall Gardens
Located in the famous Winckley Square Conservation area, Guildhall Gardens is set to become one of the most impressive new buildings in Preston’s busy city centre. This property is in a great spot to attract renters who like a mix of old-fashioned charm and modern conveniences, thanks to Lancashire’s growing economy and Preston’s ongoing revitalisation. Ideal for professionals and couples, Guildhall Gardens offers city-centre convenience in one of Preston’s most desirable areas.
£776 pcm
250 Years
8%
Q3 2023
Key Project Highlights:
- In the heart of Winckley Square, one of Preston’s most historic and affluent areas.
- Features 32 one-bedroom and 3 two-bedroom apartments with stylish, modern interiors.
- Meets Preston’s increasing demand for quality rental properties in the city centre.
- Walking distance to the University of Central Lancashire (UCLan), Market Hall, and Fishergate Shopping Centre.
- With Preston’s rental market on the rise, this is an ideal property for investors.
- 0.5 miles from Preston Train Station, 0.2 miles from Miller Arcade, and 1 mile from Avenham Park.
Angel Gardens
One of the most eco-friendly new developments in Liverpool, Angel Gardens is just a 30-minute drive from Preston and is in a fast-evolving regeneration area. This building is made to attract young workers, students, and executives who care about green living. It has environmentally friendly features and large apartments. Angel Gardens is close to key Liverpool landmarks and has quick access to the Knowledge Quarter, making it ideal for short-term and long-term rental strategies.
25%
999 Years
10%
Q4 2026
Key Project Highlights:
- Designed with green roofs, sustainable materials, and energy-efficient systems.
- Spacious Apartments: Offers one- and two-bedroom units, each larger than Liverpool’s average apartment size, with private balconies.
- Up to 10% NET returns, with entry deposits starting at £20,000.
- Close to Liverpool Waters, Knowledge Quarter, and Project Jennifer regeneration.
- Approved for flexible rental strategies to attract corporate and leisure renters.
- 0.7 miles from Liverpool Lime Street Station, 0.5 miles from John Moores University, and 1 mile from Liverpool ONE shopping complex.
Berkeley Square
.
Property Price
Rent per month
Rental Yield
Berkeley Square
Berkeley Square has modern flats, it is just 35 miles from Preston. Professionals, students, and families who want to live in style in the city will like this building. This is a great place for holiday rentals investors who want to serve Manchester’s busy population because it is in the middle of everything and close to all of the city’s best sights.
250 Years
25%
Q2 - Q4 2026
Key Project Highlights:
- Just a 30-minute drive from Preston
- High-quality finishes and spacious layouts with a communal lounge area.
- Positioned in a high-demand area near business and cultural centres.
- Near Deansgate, Manchester Piccadilly, and shopping areas.
- Manchester’s booming economy and job market ensure steady rental demand.
- 1 mile from Deansgate, 0.8 miles from Manchester Art Gallery, and 0.5 miles from Spinningfields business district.
Berkeley Square
.
Property Price
Rent per month
Rental Yield
Sovereign Point
Sovereign Point offers a luxurious waterfront lifestyle about 30 minutes from Preston, perfect for professionals and sports enthusiasts drawn to Liverpool’s vibrant energy. This building project includes 155 high-end apartments with beautiful views of the River Mersey and closeness to key culture and recreational sites. Sovereign Point comes with both high-end finishes and a community-focused vibe, which makes it an appealing option for renters who want to relax and have easy access to everything.
£839 pcm
999 Years
10%
Q3 2025
Key Project Highlights:
- It only takes 30 minutes to get there from Lancashire, which is great for investors in Preston.
- Apartments with beautiful views of the River Mersey, which are complemented by beautifully landscaped gardens.
- There are studio, one-bedroom, and two-bedroom flats with high-end finishes.
- Landscaped common areas offer a peaceful place to get away from the city.
- Near Albert Docks and the new Everton Stadium, attracting both professionals and sports fans.
- 1 mile from Albert Dock, 1.2 miles from Everton Stadium, and 0.8 miles from Tate Liverpool.
Berkeley Square
.
Property Price
Rent per month
Rental Yield
Dockside Residences
The Dockside Residences are environmentally friendly and stylish apartments on Liverpool’s beautiful harbour. They are only 38 miles from Preston.
This environmentally friendly building was carefully planned to appeal to renters who care about being good to the environment. Located near Liverpool’s top cultural attractions, Dockside Residences is well-suited for both short and long-term rentals.
£1,250 pcm
250 Years
£5,000
10 year
Key Project Highlights:
- All-electric design, with BREEAM certification and energy-efficient lighting.
- Beautiful views of the Mersey River, close to popular dockland attractions.
- 48 two-bedroom apartments with sustainable features like high-performance insulation and renewable energy sources.
- Holiday rentalss approved, perfect for travellers and business professionals.
- Walking distance to Albert Dock, Tate Gallery, and Liverpool One shopping district.
- 0.5 miles from the Royal Albert Dock, 0.7 miles from the Museum of Liverpool, and 0.9 miles from the Echo Arena.
Paragon House
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Property Price
Rent per month
Rental Yield
Paragon House
Located on Seymour Grove in Trafford, Paragon House is a high-end housing development. From here Preston is only about 30 minutes away. Paragon House is a great place to live for people who want to be close to Manchester’s culture and sporting venues and still feel safe. This building has a digital concierge and gated entry, which makes it both convenient and private. This makes it appealing to investors who want to buy high-end rental properties.
£1,000
Ready-Now
Key Project Highlights:
- Only a 30-minute drive from Preston, ideal for Lancashire investors.
- 115 spacious apartments with modern layouts and sliding doors for open-plan design.
- Community and Security: Digital concierge, gated access, landscaped gardens, and social lounges.
- Walking distance to Old Trafford and Trafford Bar tram stop for quick access to the city.
- Positioned within Trafford’s master plan, offering promising growth for investors.
- 0.5 miles from Old Trafford, 0.3 miles from Trafford Bar tram stop, and 1.5 miles from Salford Quays.
Trafford Gardens
Positioned around 35 miles from Preston, Trafford Gardens is a new development tailored for young professionals in Manchester’s Civic Quarter. This building has 116 well-designed apartments with balconies that offer renters a nice and modern way of life. Because Trafford Gardens is near both culture and business hubs, it attracts people who want to live in the city in a good, convenient way.
10 Years
250 Years
Q3 2025
Key Project Highlights:
- The property is just a 30-minute drive from Preston, making it convenient for local investors.
- Large one-, two-, and three-bedroom modern apartments are available with premium amenities.
- Based in a high-growth area, which boosts long-term investment value.
- Only 300 metres from the Trafford Bar tram stop, which links with the city core and beyond.
- Close to essential facilities, food alternatives, and business centres.
- 0.2 miles from Trafford Bar tram stop, 1 mile from Old Trafford Stadium and 0.7 miles from MediaCityUK.
These properties provide a unique mix of location benefits, modern amenities, and proximity to major attractions in Lancashire, Preston, Liverpool, and Manchester. For holiday rental investors, these complexes offer some of the best possibilities, with each built to appeal to a diverse range of tenant characteristics. This provides constant demand and a significant long-term growth potential.
Financial Outlook for Short-Term Rentals in Preston: Income, Occupancy, and ROI
Rental Income Potential in Preston
Preston’s short-term rental market has significant economic potential, thanks to the regular flow of business travellers, tourists, and university students. Properties in prime areas—like those close to the city centre or near the University of Central Lancashire—are generally able to pull in between £1,200 and £1,800 monthly. Location really makes a difference; being close to popular spots helps keep the rates strong. For anyone investing, that monthly range offers a pretty solid return.
Occupancy Rates by Area
Occupancy rates can vary a lot depending on where the property is. We’ve seen that properties in central areas, or right near the university, often hit around 75-85% occupancy. Guests love the convenience of being close to what they need, which keeps those occupancy rates high. For properties a bit outside the central buzz, occupancy might dip slightly, but adding in solid amenities and focusing on marketing can definitely keep bookings steady.
ROI Comparison: Short-Term Versus Long-Term Rentals in Preston
In terms of return on investment, short-term rentals in Preston usually provide a better value. Although long-term lets often stay between a 4-5% return, short-term lets often approach 6-7%. The ability to change costs depending on demand—that of university events or peak travel seasons—helps to provide this additional lift. This flexibility gives a short-term advantage in total revenue potential if you’re trying to maximise your property.
Challenges of Investing in Short-Term Let Properties in Preston
Seasonal demand fluctuations
One of the main hurdles with temporary lets is dealing with seasonal ups and downs. During university graduations, festivals, and summer, there’s high demand, but off-peak months can be quieter. It’s key to plan for these slower times, maybe by adjusting rates or offering promotions to keep bookings coming in even when demand dips. It’s all about keeping the property appealing year-round to balance out those seasonal swings.
With growing demand, holiday rental properties provide premium accommodation in Preston for both leisure and business visitors.
Higher Turnover and Maintenance Costs
The high guest turnover in holiday rental properties results in increased wear and tear, as well as cleaning and general upkeep after each stay. Every booking necessitates a clean-up, restocking, and possibly a few repairs, which can mount up over time. But a well-maintained property pays off, as guests are more likely to leave positive reviews and rebook, so it’s worth putting in the effort to keep everything in top shape. Modern serviced apartments in Preston are attracting travelers looking for flexible, high-quality accommodations.
Compliance with Local Regulations
Operating a short-term let-in in Preston means staying on top of local rules and regulations, which can sometimes feel like navigating a maze. In order to ensure, everything is legal, check for licences, insurance, and health and safety issues. Not only does following the rules protect your investment, but it also gives you peace of mind that everything is legal.
Steps to Start a Successful Short-Term Let Investment in Preston
Researching and Choosing the Right Property
To have a good short-term let in Preston, you must first find a property that people want to rent. Places near business districts, the University of Central Lancashire, and famous tourist spots are best. Regular bookings are made at properties near these areas because they’re handy for business travellers, college students, and tourists. When you’re looking for a holiday rental, look for homes with nice features like modern kitchens and cosy living rooms.
Financing Options for Short-Term Lets
Getting the right finances is very important if you want to invest in a short-term rental. A lot of investors choose traditional buy-to-let mortgages, but short-term let mortgages can be better for this type of business because they are more flexible. Make sure to consider factors like interest rates and monthly payments to ensure the mortgage aligns with your rental income expectations. It’s all about finding a loan that fits the unique demands and seasonal income flow of a short-term let.
Marketing and Listing Strategies
A lot of what makes holiday rentals successful is excellent marketing. Many people can find your listing on famous sites like Vrbo, Airbnb, and Booking.com. Create an interesting listing description, emphasise important details like how close the property is to attractions, and use high-quality photos that show the property from the best views. Regular bookings are helped by reasonable prices that are adjusted for the seasons and quick responses to guest questions to keep ratings high.
Benefits of Hiring a Property Manager in Preston
Managing a short-term let can be time-consuming, especially with frequent guest turnover and property upkeep. This is where hiring a property manager can really help. At Flambard Williams, we provide complete property management service to ensure visitor pleasure and efficient day-to-day operations. Our professional property management can help you maintain high occupancy and favourable guest reviews by organising check-ins and scheduling cleaning services, as well as maintaining high amenities standards. Professional property management services ensure a hassle-free experience for both investors and renters.
Conclusion: Is Short-Term Letting in Preston a Good Investment Option For You?
Investing in a short-term let property in Preston has clear advantages, like strong rental yields, flexible pricing, and steady demand from business visitors, tourists, and people connected to the university. Preston’s central location, growing economy, and lower property costs make it appealing for investors who want to get solid returns without huge upfront expenses.
Despite potential obstacles including seasonal fluctuations in demand and local regulations, choosing the right property and incorporating high-quality features can make a big difference. Planning carefully and perhaps enlisting the help of a property manager could make a short rental in Preston a lucrative addition to your investment library. Preston’s thriving short-term let market offers ideal holiday rentals for visitors seeking comfort and convenience.
With professional property management services, you can enjoy a hassle-free experience while offering high-quality holiday rentals that attract consistent bookings and positive guest reviews.
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