Burnley, a historic industrial town in the North West, has a burgeoning reputation among property investors. In this buy-to-let guide for Burnley, part of our ongoing series of UK Area Guides, we explain why.
We’ll cover:
- Burnley’s history and how it has changed
- Why Burnley is a good choice for buy-to-let investors
- Types of buy-to-lets in Burnley
- The best areas for a buy-to-let in Burnley
Let’s dive in.
Burnley: A Town Of Changing Character
Burnley is best known for its role in the Industrial Revolution. Weaving mills dominated the area, producing clothing and fabrics for much of the UK.
And while this golden age didn’t last forever, in recent years it has developed into a thriving market town. Burnley has always been popular among hikers and cyclists (owing to its proximity to the Pennines), but a variety of regeneration projects have injected a fresh impetus – bringing workers, students, businesses, and investment.
Since 2010, local authorities and businesses have invested heavily in new business parks, educational facilities, housing, and a direct rail link to Manchester. Here are three of the most exciting new projects:
- UCLAN Campus Expansion – An effort to establish Burnley as a university town, with 4,000 students expected by 2025.
- Burnley Business Improvement District – A £1m private venture by local businesses to improve the town centre.
- Pioneer Place – A £23m project to bring new leisure and restaurant facilities to the town centre.
Meanwhile, the local council has an overarching Burnley Town Centre and Canalside Masterplan, a set of urban renewal projects that will see the town transformed in the coming years.
Altogether, Burnley’s future is looking strong. But what about the local property market?
Why Is Burnley A Good Choice For Buy-To-Let Investors?
Burnley is a good choice for buy-to-let investors due to its exceptional yields. It consistently has some of the highest yields in the UK, with average figures around 7.1% reported in recent years.
Plus, with average property prices of just £133,000 (according to Rightmove, accurate of as December 2023), the market is perfect for investors with entry-level budgets.
That means an investor could take out a buy-to-let mortgage with the standard 75 per cent loan-to-value (LTV) for just £33,250. With a yield of 7.1%, they would generate a return of £9,440 per year in gross income – more than enough to cover costs and achieve profitability.
Furthermore, Burnley has all the hallmarks we look for in a buy-to-let location:
- It’s connected to major cities, like Manchester, Liverpool, and Leeds, with strong rail and road networks.
- It has a vibrant job market, with thriving industries in aerospace and advanced engineering, manufacturing, digital, and textiles.
- There is a new supply of students and young professionals thanks to the local university, UCLAN.
- It’s attracting public and private investment in a variety of regeneration projects.
- The local population is growing quicker than the national average.
Types of Buy-To-Lets In Burnley
1. Traditional Residential Properties
Burnley boasts a variety of traditional residential properties, which are available on the secondary market to buy-to-let investors.
The most popular are terraced houses. As a former industrial town, the bulk of Burnley’s housing stock is terraced. These properties often attract first-time landlords due to their affordability and appeal to small families or professionals.
There are also semi-detached and detached homes, ideally suited to families and long-term tenants seeking a more permanent living space.
2. Student Accommodation
Although most student accommodation in Burnley comes in the form of HMOs, the town got its first PBSA scheme in 2020.
With local student numbers set to grow over the next few years, it’s unlikely to be the last, so investors with a keen interest in student accommodation should keep an eye out.
3. Buy-To-Let Apartments
Modern apartments in the town centre or close to amenities are popular among young professionals and couples. These properties often generate solid rental yields due to the higher level of demand.
Burnley has extensive regeneration plans for the next decade, so new residential apartments will be coming to market.
4. Holiday Rentals
Given Burnley’s attractive countryside, the holiday rental market may be an option worth considering. Properties that can be used as short-term holiday lets, especially during peak tourist seasons, tend to generate higher-than-average yields.
Top Buy-To-Let Areas In Burnley
Although it’s a relatively small town, Burnley still has distinct neighbourhoods and suburban areas, all of which offer something unique to investors. Here’s a breakdown of the four main locations for a buy-to-let:
Burnley Town Centre
Naturally, the heart of the town most often attracts young professionals and students. It offers convenient access to shops, restaurants, and entertainment, making it a desirable location. There’s also a growing trend of commuters living in Burnley town centre, but working in Manchester – creating a wider pool of potential tenants.
Harle Syke
Known for its village-like feel, Harle Syke is popular among families and professionals looking for a quieter lifestyle while still being close to the town centre. The area is known for its good schools and community atmosphere, which can drive steady rental demand.
Padiham
Situated close to Burnley, Padiham is an attractive option for tenants looking for more affordable rents without straying too far from the amenities of a larger town. Investors may be interested to know that property prices are very low, even for the region, at an average of just £115,000. The area has seen some regeneration in recent years, increasing its appeal.
Rosehill
Just south of Burnley’s town centre, Rosehill is known for its more spacious residential properties, appealing to families and long-term tenants. The demand in Rosehill can lead to stable rental income and potential for capital growth.
Considering a buy-to-let in Burnley?
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All information is accurate as of December 2023.
