Preston is one of those cities in northern England, gaining immense popularity for various reasons. As per recent statistics, the current population in the region is around 334,000. Some key reasons for its popularity include educational institutes, access to great career opportunities, and various recreational activities.
This means that the region currently has a sizable student and working population. The city has now gained the attention of investors quite rapidly, as it has become a feasible buy-to-let market for many. Before investing capital in the region’s real estate, rental property demand must be considered based on property type and area.
What Is The Demand For Renting In Preston?
As far as analysing the demand for renting in Preston is concerned, investors must be aware of the current rental environment in the city. According to the PwC Good Growth Cities report, Preston was named one of the best places to live. Given this, those interested in relocating may consider Preston a feasible option.
From an investor’s perspective, this means that properties in Preston that are available for rent will be in demand. In addition, the average rental yield in Preston is around 4.6%. Among the different rental districts in Preston, PR1 had the highest average rental yield in the region, at 6.7%.
Apart from the average yield on rental properties in Preston, investors must also be aware of the rental demands based on property types. Preston has a variety of different property types that are mentioned below:
Detached Housing
These property types are isolated forms of accommodation suitable for families and do not share walls with other houses. These properties generally have a garden or a front lawn and often feature two levels.
Some detached houses may even come with a basement. In two-story detached houses, one can find the bedrooms and bathroom at the upper level. The ground level generally features a living room, a kitchen, and a dining room.
However, such houses can also have just one single story. In such cases, the house’s layout features a living room in the centre and other areas, such as the bedroom and kitchen, spread across either side.
Semi-detached Housing
This type of accommodation generally has one or more sides of the property attached. These houses are also suitable for families and may have a parking space or garden.
However, in the case of semi-detached housing, the tenants may have to share this space with their neighbours. The layout of such an accommodation option in Preston can be similar to that of a detached house.
Terraced Housing
These houses feature a similar design to semi-detached houses in that they share one or two walls with surrounding properties. However, the difference is that they’re designed to take advantage of the vertical space.
Such houses feature a small terrace on the second floor and a small plot of land that can be used as a garden or lawn. These properties are generally suitable for families.
Flats
This is one of the more affordable options for accommodations available for rent in Preston. Flats come with one or more bedrooms and an open kitchen. The maintenance costs are divided among the residents of the building.
In addition, they often come with essential appliances such as a kitchen or a microwave and are usually located within the city. This makes them a perfect option for both families and single individuals.
Recent population demographics show that one-person households in Preston amount to 21.4%, and households with a cohabiting couple with no children amount to 15.3%. At the same time, the single-family household with dependent children amounts to 19.4%.
Population forecasts have shown that Preston is expected to grow steadily in the coming years. If this growth aligns with the demographics mentioned above, property types featuring one or more bedrooms will continue to be in demand.
In addition, private renting in Preston has increased over the past decade. Given this, it can be stated that both houses and flats in Preston that feature one or more bedrooms are feasible options for investors seeking buy-to-let properties.
Demand In Different Areas Of Preston
When assessing the rental demands in Preston, inventors must know that it can depend on various factors that tenants prefer. Examples of such factors include easy access to public transport, offices, educational institutes, and shopping facilities. The demand may also vary based on household amenities and access to recreational areas.
Areas close to the factors mentioned above may have a higher demand for rental properties, making them a feasible option for investors. With that in mind, some of these areas may include:
Farringdon Park
This area of Preston is close to different entertainment options and offers a high standard of living. In addition, it has lots of green areas, making it a feasible location for tenants who prefer outdoor recreational opportunities. The area is also just a few minutes’ drive from different motorways, like the M61 and M65.
Ribbleton
This area has a wide range of property types that investors can consider. Some of these options include flats, detached houses, and bungalows. It’s also in close proximity to key attractions and some main landmarks. Given the property types, this may be preferred by tenants who live by themselves and those with a family.
Fulwood
Fulwood is another region of Preston that may have high demand as rent is quite affordable. It’s also near The Royal Preston Hospital and is within the limits of the city centre. These two factors create ease of access to shopping and entertainment facilities, which may make the region a preferred option for families and single individuals.
Bulmer St, Ashton-on-Ribble
This area of Preston is famous for its terraced properties, which are often used for buy-to-let purposes. Shopping facilities nearby feature both independent shops and luxury brands. In addition, the region is close to the city centre. Given the type of properties and nearby facilities in the area, it can be said that it’s suitable for families.
How We Buy Any Home Can Help?
We believe in offering practical solutions to our clients and ensuring that operations are transparent. We can help you sell a tenanted property and reinvest in Preston. Selling properties with tenants comes with the challenge of frequently keeping investors from getting the best deals.
With We Buy Any Home, you can sell a tenanted property in three simple steps. All you have to do is get in touch with us online, fill out some basic details, and receive a free cash offer within minutes. You can send your tenanted property with us in up to seven days and receive 100% cash.
Preston is rapidly gaining prominence as a key region for residents and investors. Those keen on investing in buy-to-let properties can expect an average rental yield of around 4.6% in Preston. Some of the most in-demand regions in Preston are Ribbleton, Fulwood, and Farringdon Park.
These regions have a variety of houses and accommodation options, including terraced houses, detached houses, and flats. Want to sell a tenanted property or invest in Preston? Contact us and learn more!
