Preston is the very definition of an up-and-coming area. With significant investment being put into the redevelopment of the town centre and surrounds, it is easy to see why Preston is gaining attention from investors, both local and overseas.
Why is Preston on the rise?
Preston gained city status in 2002, and since then it has gone from strength to strength. A part of the Northern Powerhouse, Preston will benefit from some £400 million being promised to the city.
Just last week the Stoneygate Regeneration Plan was approved by Preston City Council. The plan aims to create an urban village in Stoneygate and deliver 1,600 homes as part of a 15-year regeneration plan.There is certainly a buzz around this thriving North West city, as both investor and tenant demand skyrockets.
Where is the rental demand in Preston coming from?
Preston rental demand is increasing rapidly as the city becomes a more attractive place to work and live. Our lettings department, HG Premier Lettings, manage several of our developments in the city, and they cannot keep up with tenant demand.
BAE Systems relocates a large number of its employees to work in its Preston division. As such, there is a strong demand for high-end, furnished apartments in the city centre. Many of our properties are leased by companies directly, which is great for landlords as rents are always paid on time, and the properties are well cared for.
Preston also benefits from a growing student population. The University of Central Lancashire (UCLan) continues to grow and invest in new facilities, which will ensure that the rental demand from students only continues to increase.
Preston’s location is very desirable amongst renters. The city is connected to four significant motorways and various rail networks. As Manchester prices continue to soar, many tenants are looking for more affordable areas outside of the city. Preston is easily commutable to Manchester and provides tenants with more value for money when it comes to renting property.
Preston Rental Yields
The North West maintains its number one position for the best rental yields across the UK. In a recent study by Howsy, Preston came in joint fifth place with Liverpool achieving average rental yields of 5.5 per cent. As of April, average yields across the UK were just 3.5 per cent. City centre postcodes, namely PR1 in Preston, are seeing even higher rental yields of 7 per cent plus.
House prices in Preston are below average and are sharply on the rise. Early investors will reap the benefits of not only higher than average rental yields but also capital growth as Preston continues to improve.
If you’ve been considering a property investment, the Preston has considerable opportunity, and The Heaton Group will have a wide array of developments to suit all requirements.
To speak to us regarding your next investment, please email us on firstname.lastname@example.org or call 01942 251945