Investing in Property
Property Investments in Preston
If you’re interested in property investment in Preston, you’re in good company. At Brite Developments, we know a thing or two about property investment in this area. In this guide, we’re going to talk you through why you should invest in Preston and which areas are the best to invest in.
Property investors will be interested to know that Preston is a city with exceptional employment rates and one of the UK’s most affordable property markets with the potential to grow significantly.
Get in touch with us today and our experts will get back to you right away to discuss property investment in Preston. We have years behind us when it comes assisting investors and developers to secure the perfect properties to facilitate their investment needs.
What Are the Main Advantages of Investing in Preston?
A delightful city that sits on the north bank of the River Ribble in Lancashire, Preston is Lancashire’s economic centre boasting a good quality of life, excellent connectivity, and exceptional access to education.
The wider Lancashire area has around 52,000 enterprises that generate £32 billion each year - the majority of which are located in Greater Preston. The region in which Preston lies has a large talent pool and four universities with a student population of over 55,000, which only adds to the expanding talent pool year after year.
Preston’s range of affordable properties, together with the substantial transformation of the city centre that is currently in development, makes the city somewhat of an investment goldmine. There are a handful of investment and development opportunities for buyers and developers alike.
We’ll explore more of the many advantages of investing in Preston below.
Affordable Housing in a Fantastic Location
There is a reason why Preston has such a high student population – and why many people who move to the area for education decide to stay after their studies: Preston city is an affordable place to live.
The average cost of living in Preston is £619 per month for a single person without rent. The average monthly rent for an 85 m2 fully furnished home in the area is £1,284. Housing itself is also reasonably priced in Preston, especially when compared to other cities and areas in the UK. The affordability is phenomenal for a location that has so much to offer for homeowners and locals.
Due in part to an increase in families and business professionals moving to Preston from all over the UK, drawn by the city's affordability, a better quality of life, and fantastic scenery, rental demand in Preston is now at a record high.
The cost of living in Preston isn’t too bad either: energy bills (gas and electricity) are an average of £220 per month, while the average cost of food and groceries for one is £204 per month and £680 per month for a family of 4.
If you want to find lucrative property investments in Preston, speak to Brite Developments today and we can secure the most ideal property for you.
High Speed Rail 2 (HS2)
As one of the final stops of the High Speed Rail 2 (HS2) network, Preston will further establish the city as a major rail hub, making it one of the best UK destinations for travel and transport.
HS2 will cut travel times to the two largest cities in the UK dramatically - travel to Birmingham will just be 50 minutes and it will be only 1 hour and 18 minutes (77 minutes) for a direct trip to London. As a North Western city,, taking just over an hour and well under 2 hours to get directly to the capital city of London is impressive.
Preston is a major hub for land and rail logistics. It benefits from the rapid growth in home delivery and logistic services, lying on the M6 corridor and sitting just a few miles from the M62, M58, and M56.
According to the Lancashire Enterprise Partnership, the area will benefit from an additional £600 million as a result of productivity increases brought on by HS2 services. This is an exciting prospect for those interested in property investment in Preston.
Even without the exciting addition of HS2, Preston train station is a key station on the West Coast mainline that sees over 4.5 million passengers board its trains each year. This bustling city is also quite close to some of the major airports in the North West - so transport links are certainly a huge benefit of investing in the area.
Cyber Warfare HQ
Quite recently, the Government decided that they were planning to build a new £5 billion Cyber Warfare HQ in Samlesbury, Preston, which strengthens the city’s position as a National Tech Hub.
This news also means that the connected firms will be relocating to the region, meaning some big names in the tech industry will be making Preston their new home. We’re no predictor of the future, but we can only assume that this will be hugely beneficial for the economy of the city, its people, and property investors in the area.
The Lancashire economy will receive a £5 billion investment as a result of the NCF’s (National Cyber Force) development, the greatest investment in the region in the past 50 years. It has left a region that has been suffering with below-average earnings and a lack of highly trained employment with a huge promise of high-tech job opportunities and employment.
The NCF headquarters will be constructed on the former Samlesbury Aerodrome, next to BAE Systems' aircraft components factory, and will supply more than 3,000 employment opportunities for people by 2023.
If you are looking to invest in lucrative property in the continuously growing city of Preston, one of the largest cities in the North West, then let this is just one of the many reasons to make your investment decision with Brite Developments today.
By investing £434 million directly in infrastructure through the Preston and Lancashire City Deal, the Government’s Northern Powerhouse plan hopes to drive the economy into the bigger northern cities. This is just one of the many massive regeneration projects and regeneration schemes set out by the Government and Preston City Council to benefit the city and boost its city status.
As part of the Government’s Northern Powerhouse scheme, the deal is set to see the inclusion and retention of land values uplift on named HCA assets, up to a maximum of £37M, as well as the inclusion of £72M of DfT (Department for Transport) transport funding.
This will also include:
Local partner funding of £145.2M
Private sector funding of £80M
£51M of repayable funds from the HCA land receipts as a cash flow support to the Infrastructure Delivery Programme
In a housing market that is woefully neglected, this investment is projected to generate an additional £1 billion for the local economy by creating 20,000 new jobs and another 17,420 new homes.
There are no two ways about it, with all of this funding in place, Preston is going to be subject to major economic growth and population growth which, in turn, makes property investment in Preston a fantastic opportunity for all buyers, investors and developers alike.
The city’s housing market is just starting to take off thanks to major developments and investments in the city like HS2, new enterprises, population expansion caused by the Northern Powerhouse project, and reasonably priced housing on the local market.
Due to the high percentage of potential renters who are employed, the high employment rate is undeniably advantageous for investors.
Compared to most other UK cities, Preston has fairly affordable real estate, although the city's values are steadily growing. Given the inexpensive entry points for acquiring a buy-to-let property in Preston, landlords are realising rental yields of over 7% in central Preston areas.
The median price for property in the Preston area is £180k, with an average price of £213k. Over the past year, the average price of a property in Preston has decreased by -£1.3k (-1%).
In the Preston area, apartment prices have increased by 7% over the last 12 months, reflecting both a shortage of availability and the increase in people moving to the city centre.
Average Asking Price by Type in Preston (£000's)
Number of Properties Found Advertised for Sale in Preston by Type
Should You Invest in a Buy-to-Let Property in Preston?
Taking into consideration the low entry points for acquiring a buy-to-let property in Preston, landlords and investors alike are starting to realise rental returns of over 7% in central Preston locations.
When it comes to buy-to-let property in Preston, average yields vary depending on which location within Preston you’re investing in. According to a study from Numbeo, we found the average monthly rent in the city centre is: £566.67 for 1 bedroom apartments and £1,350.00 for 3 bedroom properties.
The average property price per month for properties outside the city centre is £412.50 for 1 bedroom apartments and 1,200.00 for 3 bedroom properties
Begin Your Preston Property Development Today with Brite Developments
We have the knowledge and expertise to help you get started. Whether you’re investing for the first time or are already familiar with the property market, we help investors maximise their profits and growth by securing them the best property and finance that meet their needs entirely.