House prices in 'PR1 2', Preston

This article reveals price per square metre data and various charts to help you understand current housing market in 'PR1 2' (Preston, Penwortham) - statistics were last calculated on 03 December 2024.

Defining 'PR1 2'

This analysis is limited to properties whose postcode starts with "PR1 2", this is also called the postcode sector. There are no official postcode sector names so I've just labelled it PR1 2, Preston. It is shown in red on the map below.

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You can click on the map above to change to a neighbouring sector, or you can use the search form below.

Price per square metre

Knowing the average house price in PR1 2 is not much use. However, knowing average price per square metre can be quite useful. Price per sqm allows some comparison between properties of different size. We define price per square metre as the sold price divided by the internal area of a property:

£ per sqm = price ÷ internal area

For example in September 2024, 21, Maudland Bank, Preston, PR1 2YJ sold for £83,500. Given the internal area of 44 square metres recorded on the EPC, the price per sqm is £83,500 ÷ 44 sqm = £1,897.

England & Wales have been officially metric since 1965. However house price per square foot is prefered by some estate agents and those of sufficiently advanced age ;-). It is a huge pain to code the automatic conversion for square meters to square feet for all the graphs and charts on PR1 2 and elsewhere. All the conditionals turn my tidy code for into spaghetti. I will get around to it at some point, but for now you can just divide everything by 10 in your head, move a decimal place and you'll be close enough. If you want to be more precise 1 sqm = 10.76391 sqft.

Distribution of £ per sqm for 'PR1 2' vs 'PR1'

The chart above is called a histogram, it helps you see the distribution of house price per sqm in PR1 2 To make this chart we put all the sales data into a series of £ per sqm 'buckets' (e.g. £1,450 to £1,500, £1,500 to £1,550, £1,550 to £1,600 etc...) we then count the number of sales with within in each bucket and plot the results. The histogram is based on 43 sales that took place in PR1 2, Preston, Penwortham in the last 24 months.

Generate a custom histogram like the one above but based on your own criteria.

You can see the spread of prices above. This is because although internal area is a key factor in determining valuation, it is not the only factor. Many factors other than size affect desirability; these factors could be condition, aspect, garden size, negotiating power of the vendor etc.

The spread of prices will give you a feel of the typical range to expect in PR1 2, Preston. Notably, only 25% of properties that sold recently were valued at more than £1,900 sqm. For anything to be valued more than this means it has to be more desireable than the clear majority of PR1 2 homes.

Box plot of £ per sqm for PR1 2

Tip: click on the chart to see the values.

The chart above is called a boxplot (or a box-and-whisker plot). Box plots, like histograms, are used to graphically represent the distribution of data, showing the central tendency, spread of the distribution. In the context of £ per square metre property price distributions, box plots represent the variation in property prices within a geographic area e.g. Preston. The chart above shows a boxplot for 'PR1 2' as well as the 'PR1' postcode district.

  • Median: The horizontal line inside the box represents the median (£ per square meter). This is the midpoint of the data, meaning 50% of the prices are below this value, and 50% are above. The middle price per square metre in 'PR1 2' is £1,680.
  • Interquartile Range (IQR): The box spans from the 25th percentile (Q1) to the 75th percentile (Q3). This is the range where the middle 50% of the data lies, giving a good indication of the typical price spread. Of the 43 transactions in PR1 2, Preston half were sold for between £1,120 and £1,900 per square metre.
  • Whiskers: In our case, the whiskers extend from the 9th percentile (at the lower end) to the 91st percentile (at the upper end), This provides a slightly broader view of the distribution by including the middle 82% of records. The whiskers capture most of the variation but exclude extreme outliers caused by data errors in recording sold house prices or internal area.
  • 'n=' is the number of property transactions the box plot is based on; 43 for PR1 2, Preston.

    • Property price map for Preston

    Have a look at the interactive price map I created for myself. Use it to explore 'PR1 2' house prices all the way down to individual property plots.

    Property price heatmap for Preston
    House price map for Preston

    Preston house price forecasting

    I cannot tell what house prices will do in the future and don't believe anyone who says they can. However we can plot price trends, I have done this in the chart below for PR1 2 (Preston) compared with the wider postcode district of PR1. You can extrapolate from this based on your own views on future interest rates, inflation and other factors.

    House price index for PR1 2

    Tip: click on the legend items to show/hide different lines

    Download house price index as CSV (premium users only).

    The chart above shows changes in 'PR1 2' property prices over the last 20 years. The index is calculated from the average price paid per sqm for property in PR1 2 and is set to 100 in 2004. I'm comparing the trends for PR1 2,Preston with the wider postcode district of PR1 What is more interesting is to look at the difference between flats and houses, even those in the same area follow a very different trend, to get a robust enough sample size to see this we need to zoom out and look at house price trends for the entire Preston local authority.

    The dashed lines show nominal house price changes, the solid lines show the same data adjusted for inflation. Economists call this the 'real' price change. You have to take inflation into account when comparing prices over time. It's calculated using the formula:

    Real Rate of Return = (1 + Nominal Rate) ÷ (1 + Inflation Rate) – 1
    In this formula, the nominal rate is the rate of change before any adjustments, and the inflation rate is taken from the Consumer Price Index. The real rate of return is a more accurate measure of change in value, because £1 today does not have the same buying power as £1 in the past. For example, if a savings account pays an interest rate of 3% per year and the inflation rate is 5% per year, the real rate of return is -2%. This means that the investment's value is shrinking by 2% each year.

    Historic returns for PR1 2
    PR1 2 sector PR1 district
    Nominal Real Nominal Real
    20 yr per annum 3.0% 0.3% 2.6% -0.0%
    20 yr total 79.8% 6.5% 68.6% -0.1%
    10 yr per annum 0.3% -2.4% 2.8% 0.0%
    10 yr total 3.3% -21.5% 32.3% 0.4%
    5 yr per annum 1.4% -2.5% 3.9% -0.2%
    5 yr total 7.4% -12.1% 20.8% -1.1%
    1 yr per annum -0.1% -4.1% 2.2% -1.9%
    1 yr total -0.1% -4.1% 2.2% -1.9%

    This table complements the house price index chart above, presenting the data in a more detailed format. It breaks down the information into 20-year, 10-year, 5-year, and 1-year periods, further categorized by property type. For each period, we display both a per annum rate of change and a total rate of change.

    The total rate of change represents the overall change over the entire period. The formula for total return is:

    Total return = (Index at end of period ÷ Index at start of period) - 1

    The per annum rate of change is the annualized rate of change over the period. This is equivalent to the annual bank savings rate you would need to achieve the same total return over the given period. This annualized return is also known as the Compound Annual Growth Rate (CAGR). The formula for CAGR is:

    CAGR = (1 + Total return) ^ (1 ÷ Number of years) - 1

    Some specific examples:

    • Over the past 20 years, PR1 2 sector have seen a 0.3% annual change when adjusted for inflation. This translates to a total change of 6.5% in real terms.
    • Over the past 5 years, PR1 2 sector have seen a -2.5% annual change when adjusted for inflation. This translates to a total change of -12.1% in real terms.

    Most recent PR1 2 sales

    For the most recent sales activity, rather than a summarized average, it is better to see the underlying data. This is shown in the chart below, where blue dots represent individual sales, click on them to see details. If there is an obvious trend you should be able to spot it here amid the noise from outliers.

    Tip: hover over dots to see details

    Street level data

    Nearby geographies

    The table below shows how 'PR1 2' compares to the other postcode sectors in PR1.

    Sector Lower quartile Median Upper quartile Sales in last 2yr
    PR2 2 Ashton On Ribble £1,470 sqm £1,700 sqm £2,000 sqm 330
    PR1 9 Penwortham £1,940 sqm £2,440 sqm £2,790 sqm 338
    PR1 8 Preston £1,390 sqm £1,560 sqm £1,770 sqm 155
    PR1 7 Preston £1,270 sqm £1,490 sqm £1,690 sqm 135
    PR1 6 Preston £1,230 sqm £1,460 sqm £1,780 sqm 170
    PR1 5 Preston £920 sqm £1,270 sqm £1,540 sqm 200
    PR1 4 Preston £1,120 sqm £1,350 sqm £1,570 sqm 168
    PR1 3 Preston £970 sqm £1,260 sqm £1,730 sqm 110
    PR1 2 Preston £1,120 sqm £1,680 sqm £1,900 sqm 43
    PR1 1 Preston £1,720 sqm £3,240 sqm £3,370 sqm 160

    Raw data

    Our analysis of PR1 2 is derived from what is essentially a big table of sold prices from Land Registry with added property size information. Below are three rows from this table to give you an idea.

    Address Paid sqm £/sqm
    21, Maudland Bank, Preston, Penwortham £83,500
    Sep-2024
    		 44 1,897
    171a, Lancaster Rd North, Preston, Penwortham £58,500
    Aug-2024
    		 54 1,083
    30 Cubic, Birley St, Preston, Penwortham £47,000
    Jul-2024
    		 42 1,119

    See the entire list of all sales in PR1 2 here.

    About

    I created HouseMetric because I wanted to see this data and analysis myself, I also wanted to teach myself to build a website. Please give me feedback or spread the word about it. I'm constantly tinkering and adding more stuff to it.