-
Census 2021 Data -
Homes & Property -
Law and Order -
Jobs & Economy -
Learning & Schools -
Essential Services -
Travel & Transport -
Local Amenities -
Leisure & Recreation -
Environment
Yield
Sandybrook Close, Fulwood, Preston, Lancashire
PR2 5QX Preston District (B)
This section gives the estimated property yield for the postcode based on our own unique algorithms, comparing it to the national average. We analyse gigabytes of data to explore why yields might be higher, lower, or in line with expectations. From local market trends to demand and property types, the data paints a clear picture of investment potential in PR2 5QX.
Estimated yield for property investors
2.6%
Yield
The estimated yield for the PR2 5QX postcode area is 2.6%, which is lower than the national average yield of 3.8%.
Summary
Low yields combined with moderate safety levels in PR2 5QX suggest that this area may not be the best choice for property investors looking for strong returns. It may be worth exploring other areas with higher yield potential.
Property yields in PR2 5QX are lower than average, which might reflect a more mature or stable market where opportunities for high returns are limited.
The combination of lower yields and higher levels of crime might indicate that the area is significantly less desirable for high-return investments due to its lack of safety. However, it could still appeal to those seeking stable, long-term growth.
The urban nature of PR2 5QX suggests that the area is well-connected and densely populated, which typically correlates with strong rental demand and potentially higher yields.
With a lower rate of home ownership, the rental market in PR2 5QX is likely more active, offering greater opportunities for investors to capitalise on demand.
Despite the urban appeal, a lower safety score might deter some potential tenants, which could impact rental demand and yield stability.
The economic stability in PR2 5QX, indicated by moderate to high income levels and lower unemployment, bodes well for both property values and rental yields, as residents are more likely to afford stable housing.
Factors affecting yield in PR2 5QX
Understanding property yield involves considering various factors like affordability, income, and crime rates. These elements influence rental demand, property values, and ultimately, the return on investment.
Property Yield (%)
The yield represents the income from a property as a fraction of its value. It's an important consideration for investors, with higher yields often resulting from favourable rental income and local market conditions around PR2 5QX.
Property Affordability
Affordability measures the relationship between property costs and local incomes. Less affordable areas might see rent increases that boost yields, but the reduced buyer interest could impact long-term property values.
Rental Affordability
This assesses the portion of income households allocate to rent. Excessive rent costs in PR2 5QX may suppress tenant demand and decrease yield, while affordable rents are more likely to secure long-term tenants, stabilising yield over time.
Household Income
Higher household incomes can support higher rents, leading to potentially better yields. But in affluent areas, the increased property prices may reduce the yield percentage, even with solid rental income.
Urban Location
Urban areas tend to produce higher yields owing to strong demand from renters, especially in cities with a young and mobile workforce. However, the high property prices in such areas can reduce the overall yield percentage.
Employment Score
High employment is often a sign of economic trouble, which can lower rental demand and increase vacancy rates, reducing yield. Low unemployment generally suggests a stable economy, encouraging higher rental demand and improving yields.
Outright Ownership
A community with a high level of outright property ownership is often more stable, with less need for rentals, which could reduce yields. In contrast, areas with fewer outright owners might see increased rental demand, potentially enhancing yields.
Crime & Safety Levels
High crime can deter potential renters, lower property values, and result in reduced yields. On the flip side, low crime rates attract renters and buyers, which can boost rental income, property values, and yields.
Best Performing Yields
The following postcodes within the PR2 location current have the highest performing yields:
Methodology
Our property yield estimates are derived from a custom algorithm built by PostcodeArea that combines data from the Census 2021 and other reliable third-party sources.
This algorithm evaluates several key factors - including affordability, rental affordability, household income, urbanisation, unemployment rates, property ownership levels, and safety. We do this by assigning weighted scores to each factor. These factors are chosen for their relevance to property investment, with the yield percentage itself carrying the most weight due to its direct impact on potential returns.
The algorithm also incorporates conditional logic to assess how different combinations of these factors might influence property yield. For example, a neighbourhood with high rental affordability and strong income levels might indicate robust rental demand, leading to higher yields.
Conversely, areas with high unemployment and low income could see reduced rental demand, potentially lowering yields.
By considering these interactions, the algorithm provides a more nuanced estimate than simple averages or single-factor analyses.
It's important to note that these yield figures are general estimates intended as a guide rather than precise calculations. While the algorithm offers valuable insights based on historical and statistical data, it may not fully capture the unique aspects of each neighbourhood or current market conditions.
Investors should use this information as a starting point for further analysis and consider it alongside other factors such as market trends and personal financial goals.
