Preston named best small city for property investors and landlords
Property investors are always looking for new up-and-coming hotspots where they can get ahead of the game and invest in the next big thing. One such city making waves in this regard is Preston that has recently been named best small City for landlords in The Telegraph.
According to the article, the median price for an apartment in Preston is £80,000, giving an average yield of 8.6%. This is the highest of any small city in England, though investors should be aware that the high end luxury investment apartments in Preston are the most in-demand property type in the city and have a slightly higher entry price. The trade-off is that there is a real scarcity of this type of property and so you will have fewer worries about finding a tenant.
So, who is renting in Preston to make the yields so impressive? One major source of potential tenants in the city is the University of Central Lancashire (UCLan) which has a huge presence in Preston. Approximately 38,000 people study or work at the university and contribute an estimated £300m to Preston each year. Additionally, there are 500 registered student start-up businesses in Preston which make UCLan the North West’s top university for entrepreneurs.
A great example of UCLan’s impact is the recent strengthening of its links with BAE Systems to enable further collaboration on a range of business innovation initiatives to support Lancashire enterprises and the development of entrepreneurship training.
The company employs 10,000 people in the Preston area, and the partnership with UCLan will allow both parties to “to accelerate the pace of technology development by harnessing each other’s skills, facilities and connections as part of the process. It recognises the importance of the region in developing the skills and technologies that help Lancashire retain and grow its reputation as a technology provider and create regional prosperity.”
This level of economic activity and the quality of teaching are just two of the factors which led to UCLan being ranked as the top modern university in the North West for the fifth year running.
However, a world class educational establishment and high quality job prospects are not the only attraction that Preston offers. The city has approximately 500 hectares of parks, green spaces and wildlife habitats, including the award-winning Avenham and Miller Parks. If that’s not enough, it is also a 45-minute drive to the Lake District and the Yorkshire Dales which are also both accessible by train from Preston Station which is itself undergoing a major transformation.
From the station, you can also reach London in two hours and Manchester in 40 minutes. This location is perfect for businesses large and small, and helps to make Preston a prime site for growing and established companies.
This is especially true in the technology and communication sector which has a substantial presence in the city. Overall, it has been stated that Preston enjoyed 26% growth in employment over the decade to 2020 – three times the regional average and double the national average.
Preston property investment is a great opportunity for investors no matter what your budget level. The city has a booming economy, a fantastic lifestyle to offer and a higher education sector which is vibrant and brings an enormous benefit.
There has never been a better time to invest in Preston, and investors and landlords whoa re looking for the UK’s next buy to let property hotspot should know about it.