Affordable Property and High Rental Yields
Whether or not a location has affordable property is one of the most important considerations when it comes to deciding on an area for a buy-to-let investment.
If the initial funds needed to start the investment are lower, the investor will start seeing returns quicker, and the financial burden of the investment will be lighter. As mentioned before, Burnley has some of the cheapest properties in the UK.
Rental yields are another factor that will play heavily into an investor’s decision-making. This is a calculation that involves the price of the property and the projected rental income.
Areas like Burnley that have more affordable property will also often have high rental yields, as the cost of renting has risen sharply in recent years. Burnley was named the North West area with the highest average rental yield in 2023, according to Zoopla.
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Burnley’s history as a Lancashire mill town has left it with a strong manufacturing sector and strong economic links with Manchester and Leeds. This helps attract investment into the town, and the area has benefitted from regeneration in the past, such as the Forest of Burnley Scheme.
Ongoing projects include a flagship regeneration scheme to improve pedestrian routes between the town’s main shopping centre and Burnley football ground.
There’s also a Burnley Town Centre and Canalside Masterplan that looks set to transform central Burnley with various projects, including the £23 million Pioneer Place leisure complex and a scheme to repurpose the town’s mills for educational use by the University of Central Lancashire.
It’s worth taking note of current and future regeneration schemes when considering a location for a buy-to-let investment. If big regeneration efforts are promised for a certain area, it can suggest increased rental demand and higher capital appreciation in the future.