Our Monthly feature by Kyle Hastings
The centre of Preston City has undergone significant regeneration over the last few years, owing largely to the £20 million investment made as part of the government's Levelling Up fund, as well as Preston City Council's redevelopment of the Harris Quarter and Station Quarter. The overall aim of these schemes is to attract more businesses to the area, which in turn will attract more workers - all of whom will need somewhere to live.
Developers are aware of this impending demand for housing in the centre of Preston and The Heaton Group have already completed their Bishopgate Gardens development and are set to finish work on The Exchange on Pole Street by Q3 2023 - both of which offer luxury city centre accommodation geared towards professionals. Both of these developments were heavily targeted towards buy-to-let investors from outside of the area and have sold well, albeit at a premium price and with annual leasehold fees attached.
However there is a more financially savvy way to access this upcoming new market of professionals who will be looking for housing in Preston City centre in the near future. What these developers don't want their investors to know is that Preston Centre isn't like the urban sprawls of Manchester or London - it's relatively compact - and as such is flanked on nearly every side by houses, plenty of them! Whilst a super modern 1-bed apartment in one of the aforementioned new developments will set you back around £145,000, a 2-bed terraced house in Avenham, Plungington or Broadgate can be snapped up for the £90,000 mark.
Whilst I am sure that prices for these properties will begin to rise in the coming years as the levels of demand increase, there is an abundance of them available at competitive prices at the moment. Properties that should more than hold their value, and command increasing rental premiums as the centre of Preston continues to grow. Expect annual yields of 7.5% with a view to rising over the coming years.