The exceptional job availability and work-life balance make Preston one of the UK’s best cities to live in. It is located in Lancashire in the North West of England. Considering that Preston obtained its city status in 2002, a large amount of investment is going into the improvement of the city’s infrastructure. Moreover, Preston’s population has grown tremendously, causing an increase in property demand. Many Preston landlords are now confident in expanding their rental portfolios thanks to the rising rents, falling mortgage interest rates, and decent demand for property in Preston.
Due to increased property demand, real estate investing in Preston can be an excellent opportunity. However, it requires a certain amount of planning and preparation. There are various ways in which a resident can make investments in Preston, such as buying as a private individual, through a company, through real estate investment, or through financing. Each option has advantages and disadvantages, so it is important to carefully evaluate your needs and goals before choosing the most suitable mode. For instance, buy-to-let investors sell their properties to cash-buying companies, such as We Buy Any Home due to unfavourable tax changes and interest rates.
What does Preston’s rental market look like?
According to Plumplot, Preston’s population has soared in recent years. To be specific, the population has increased by 9.5% since 2002. The new “city” status and large investments in the infrastructure have turned Preston into a booming buy-to-let hotspot. Even the PwC Good Growth Cities index considers Preston one of the best places to live. This attracts the young population into the city looking for excellent work opportunities and a better lifestyle.
Owing to these factors, Preston’s rental market is performing incredibly well. The average rental yield of Preston is well above the UK average of 3.38%. For instance, the PR1 district in Preston has an average rental yield of 6.2%. This figure is almost double the UK’s rental yield average. As per experts’ forecasts, the UK’s rents will constantly increase in the foreseeable future, making Preston one of the leading buy-to-let locations.
What rental yield can investors expect?
When the Stamp Duty Land Tax (SDLT) returned to pre-pandemic rates on October 1, 2021, it was forecasted that the property rates would go down. However, this wasn’t the case in reality. Currently, the Preston property market is one of the busiest when it comes to sales in the UK. In the last ten years, house prices in Preston have increased by an incredible 60%. As per the forecast, the prices are set to continue going up. This is because Preston is in the middle of a large-scale regeneration project. Preston City Council earned the prestigious Planning Authority Team of the Year award for its incredible efforts to create a thriving community.
Since Preston is located at the heart of a motorway network, it is an attractive place for business owners looking for easy access to different locations in the UK. It is located 50 minutes from Liverpool and only 40 minutes from Manchester. It is also linked to Glasgow and London by direct train. In the next five years, the rates of houses are expected to increase by a massive 18.8%.
How can you become a landlord in Preston?
To become a landlord in Preston, you must voluntarily join the Preston Accredited Lettings Scheme (PALs). This scheme works in partnership with the private rented sector. It aims to offer help and advice on housing and rent in Preston. One of the main goals of this scheme is to create better working relationships and improve standards in the private rented sector. The Preston Accredited Lettings Scheme (PALs) is also part of the Authorities and Landlords Improving Standards Together (A&List) group.
Through this landlord accreditation, you will be identified as a trusted landlord. This is because the members must adhere to a code of conduct relating to management. The tenants have the satisfaction that the accommodation is in good condition and the tenancy will be managed to a good standard. This scheme is made for landlords who privately rent their properties. Once the landlords join this scheme, they are provided with the landlords’ information pack. Following are some of the major aspects of this landlord’s information pack:
- Guidelines relating to repair
- Guidance related to general repair and maintenance
- Guidelines related to the safety of goods
- Energy and performance certificate requirements
- Standards for houses let in lodgings
- Standards for hostels, guest houses, and similar
- Instructions for houses and flats in single occupation
- Fire prevention guidelines
- Gas safety guidelines
- Standards for basement rooms
- Standards for shared houses
In case you can’t afford the property, you still have options to invest in the Preston property market. If you earn less than £80,000 a year, you may opt for shared ownership. Similarly, if you earn less than £53,000 a year, you can invest in discounted homes.
What happens if you want to stop investing?
With an impressive level of employment and a flourishing student population, Preston is gradually becoming a thriving economic hub. That is why it would be unwise to stop investing in the property. However, if you still want to stop investing, selling your house to tenants is best. Services like WeBuyAnyHome can buy your house with tenants. While selling a tenanted property seems lengthy and daunting, cash-buying companies have made it easy for you. All you need to do is visit their website and enter your details. You’ll get your FREE cash offer within minutes. To make things more interesting, you can receive your funds within seven days of approaching the company.
The process of selling a buy-to-let property is often long, taking up several months to process. This is not an ideal approach if you want to stop investing. Waiting for such long periods will cause a drop in your personal savings. This is where WeBuyAnyHome comes in. By using the services of such cash-buying companies, you are freed from all the hassle and extra costs of selling your housing. Companies like WeBuyAnyHome will buy your housing property upfront in cash. There are no hidden costs or fees to facilitate the sale, and the process does not take long.
Selling A Buy-To-Let Property
If you need immediate income through selling your buy-to-let property, the best option is to sell to a cash-buying company. These companies have a hassle-free and fast sale process which allows you to receive your funds within a week or two.
Companies like We Buy Any Home take away the headache of getting a listing, arranging viewings, vetting potential buyers, and then arranging the sale of your property. With Preston’s buy-to-let property market booming, you will likely get a good sale price.
Should I Sell My Buy-to-Let in Preston?
Considering that more people are now willing to settle in Preston, the buy-to-let market is indeed on the rise. To ensure that you comply with all the legal and safety requirements, ensure that you have the proper licence to become a landlord. Also, make sure that you have the licence for the correct scheme. However, if you want to stop investing in this sector, using the services of cash-buying companies like We Buy Any Home is the best idea.