Home sellers in Preston achieved 121% of the average asking price during the past year. This is just one of the signs that the city is becoming a property investment hotspot.
Recent research from GetAgent.co.uk revealed Preston has been the best market for UK home sellers during the last year. The average asking price for properties in the city was £177,177, while the average sold price came to £214,325.
This is much a much greater gap than the UK average, which showed most people accepted offers below asking price. The data shows the nation’s home sellers tended to sell their houses for only 96% of the average listing price.
Growth and regeneration
As the UK’s newest city, Preston is seeing a significant amount of growth and regeneration. The Preston and Lancashire City Deal will bring £1bn of economic growth to the area over the next 10 years. Further to this, a number of other major investments are underway to boost the city and nearby area.
In the Good Growth for Cities Index by Demos-PwC, Preston was named the best city to live and work in the north-west of England in 2017, 2018 and 2019. Employment numbers are increasing, and as major regeneration and development continue to come to the area, the city is attracting more people to live, work and invest in Preston.
Additionally, the city’s strategic location between Manchester and Liverpool makes it well-connected. Because of this, it’s an especially attractive location for young professionals. In the Budget 2020, Chancellor Rishi Sunak even announced £40m for a new rail station at Cottam Parkway in Preston City Region. This is located along the Preston-Blackpool line, and will further improve the city’s connectivity.
Property investment hotspot
Investing in Preston can not only help experienced investors diversify their portfolio by buying property in an emerging market. The city also provides opportunities for new investors and homebuyers with less capital, including first-time buyers.
The north-west as a whole is forecast to see house prices increase by 24% across the next five years, according to Savills. And with the regeneration and investment coming to the city, investors expect Preston to see further growth in house prices and rental yields in the coming years.
BuyAssociation has a number of exciting property investment opportunities available in Preston. Check out our investments page to learn more about these projects. You can also sign up for free to get early access to our deals.