As you may have already seen in the local press after many years of near zero growth in rents and house prices, Preston’s property market is on fire!!!
There are many factors for this unprecedented growth, including but not limited to the large scale regeneration of Preston’s City Centre and University. Preston named by PWC as the UK’s best City to live and work in for the 5th year in a row. Preston being confirmed as the site for the Governments new Cyber Warfare Centre, creating up to 12,000 new jobs directly and indirectly acting as a magnet attracting other tech companies to relocate into the area.
Since the end of lockdown and the rethinking of working practices, we have seen record numbers of people relocating to the Greater Preston area from across the country, drawn by factors like affordable housing, cost of living, greater connectivity to other major cities, easy accessibility to areas of outstanding natural beauty, such as The Lake District, Ribble Valley, Trough of Bowland and Fylde Coast.
Knight Frank, the global real estate firm, have tipped Preston to have the highest capital growth of any City in the UK over the next 5 years, with a predicted increase of up to 25% on capital values and rental growth of 20% +.
Preston has also just been named as the UK’s No1 Buy-To-Let Hotspot, leading to a huge influx of investors from other parts of the UK and Overseas, further bolstering the Cities burgeoning property market.
To put things in perspective, a recent article in Money Week said that if current levels of inflation continue, £1 million in cash savings today will have the equivalent spending power of only £400,000 by 2030, a sobering thought!!! Whereas a £1 million investment in residential property over the same time period would have grown on average to £1.3 Million, with additional rental income of £400,000 on top of the capital growth!!!!
With inflation at record levels, investing in property is one of the best ways to protect your hard earned cash and with local house price/rental growth predicted to continue its upward trajectory for at least the next 5 years, now could be a great time to expand your portfolio.