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Yield
Willows Ln, Kirkham, Preston
PR4 2BS Fylde 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 PR4 2BS.
Estimated yield for property investors
3.9%
Yield
The estimated yield for the PR4 2BS postcode area is 3.9%, which is higher than the national average yield of 3.8%.
Summary
The PR4 2BS area has a lower yield, but its high safety score makes it a stable, if not lucrative, investment option - in the long term. Investors seeking long-term stability rather than high returns might find this area appealing.
Property yields in PR4 2BS are lower than average, which might reflect a more mature or stable market where opportunities for high returns are limited.
However, the high safety score adds value to the area, potentially attracting long-term tenants or buyers who prioritixe security, making it a stable investment option.
The urban nature of PR4 2BS 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 PR4 2BS is likely more active, offering greater opportunities for investors to capitalise on demand.
Furthermore, the high safety score in this urban area adds to its desirability, potentially attracting a broader demographic of renters, including families and professionals who prioritise security.
Factors affecting yield in PR4 2BS
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 (%)
Property yield measures the income generated relative to the property's purchase price. It's a key metric for investors, reflecting how rental income compares to market values and area demand in PR4 2BS.
Property Affordability
Affordability looks at the balance between property prices and local incomes. Areas with low affordability might experience higher rents, which could raise yields but might also limit the pool of potential buyers, impacting long-term values.
Rental Affordability
This metric shows the share of household income spent on rent. High rent burdens relative to income could reduce tenant interest, potentially lowering yield. On the other hand, affordable rents might attract reliable tenants, helping to maintain yield stability.
Household Income
In areas with higher household incomes, the potential for higher rents can lead to improved yields. However, the high property prices in affluent areas might lower the yield percentage, even with substantial rental income.
Urban Location
Urban locations often yield better returns due to strong rental demand, particularly in cities with a young, mobile demographic. However, the higher property prices in these areas can counterbalance rental income, potentially lowering yield percentages.
Employment Score
Unemployment levels are a key economic indicator; high unemployment often reduces rental demand and increases vacancies, lowering yield. Low unemployment typically correlates with economic stability, driving higher rental demand and better yields.
Outright Ownership
High outright ownership rates often suggest a more settled community with reduced rental demand, which might lower yields. Conversely, areas with fewer outright owners could see more demand for rental properties, potentially improving yields.
Crime & Safety Levels
When crime rates are high, renter interest often decreases, leading to lower property values and yields. Conversely, low crime rates make an area more attractive to renters and buyers, increasing both rental income and yields.
Best Performing Yields
The following postcodes within the PR4 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.
