Why Invest in Preston HMOs?
Investing in HMOs in Preston offers a compelling opportunity due to the city’s affordable property prices and strong rental yields. According to ONS, as of August 2024, the average house price in Preston was £169,000, reflecting a 4.7% increase from the previous year. Private rents also rose to an average of £687 in September 2024, an annual increase of 6.3% from £647 in September 2023. Representing a growing economy that investors will be keen to get in on.
Additionally, Preston’s status as a university city, home to the University of Central Lancashire, contributes to regular demand for rental properties, particularly HMOs, as students and young professionals seek affordable shared housing options. The city’s strategic location, with excellent transport links to major cities like Manchester and Liverpool, also enhances its appeal for commuters and residents alike.
Ongoing regeneration projects, such as the £434 million City Deal, aim to create 20,000 new jobs and over 17,000 new homes, presenting further opportunities for investors as well as boosting the local economy and housing market.
Preston’s proactive approach to managing HMOs, including licensing requirements and Article 4 Directions in certain areas, ensures a well-regulated market, providing confidence for investors. These factors collectively make HMO investments in Preston a potentially lucrative venture, combining affordability, strong rental returns, and a growing economic landscape.
