How Preston’s Housing Market Is Leading the Way in the North West

Robust Housing Market with Promising Returns

As of February 2025, the average house price in Preston stands at approximately £181,000, notably below the UK average of £271,000. This affordability, combined with a year-on-year price growth of 5.1%, positions Preston as an attractive market for first-time buyers and seasoned investors. Rental yields are equally impressive, with certain areas offering returns upwards of 6.5%, driven by a strong demand from students, young professionals, and families.

Strategic Developments Fueling Housing Demand

The city's commitment to expanding its housing stock is evident through initiatives like the Preston and Lancashire City Deal, which aims to deliver over 17,000 new homes. Recent planning approvals include a major estate comprising 450 homes, a new school, and a park in the suburbs, catering to the growing population and enhancing community living.

Infrastructure Enhancements Elevating Connectivity

Significant infrastructure projects further bolster Preston's strategic location. The £434 million City Deal investment is transforming the transport landscape, facilitating the creation of 20,000 new jobs and stimulating economic growth. The upcoming Cottam Parkway railway station, slated for a 2025 opening, will enhance connectivity, benefiting the western suburbs and supporting new housing developments.

Education: A Pillar of Community Growth

Education remains a cornerstone of Preston's development strategy. The University of Central Lancashire (UCLan) continues to expand, with its £200 million masterplan introducing state-of-the-art facilities and attracting a diverse student body. Additionally, the city's schools and colleges are receiving substantial investments, ensuring quality education and fostering a skilled workforce.

Community-Centric Initiatives Driving Prosperity

Preston's innovative approach to economic development is exemplified by the 'Preston Model' of community wealth building. This strategy emphasises local procurement, fair employment practices, and reinvestment in the community, creating a resilient and inclusive economy that benefits residents and businesses alike.

Future Outlook: Sustained Growth and Investment

Preston's housing market is poised for continued growth. The confluence of affordable property prices, robust rental yields, and ongoing investments in infrastructure and education creates a fertile ground for property investment. As the city continues to evolve, it offers a unique blend of opportunity and quality of life.

Partner with Farrell Heyworth for Your Property Journey

At Farrell Heyworth, we are committed to guiding you through Preston's dynamic property landscape. Whether you're seeking your first home, expanding your investment portfolio, or exploring rental opportunities, our expert team is here to provide personalised advice and support every step of the way.