Burnley Buy-to-Let Guide

According to housesforsaletorent.co.uk, the average monthly rent in Burnley is £639. This is much more affordable than the UK average rent of £1,268 PCM, per the October 2023 HomeLet Rental Index.

While lower rent will mean less rental income per month for a landlord, it can have some benefits, such as the high rental demand that can come with more affordable rental properties. Another thing to take into account is that a high rental yield can still be achieved, provided the price of the property is comparatively affordable.

This can be said of Burnley, as the town is often named as a part of the UK with particularly high rental yields. According to Zoopla, Burnley has the highest rental yield in the North West and is third overall when compared to the whole country, with 7.73%.

There is also an opportunity to let student accommodation in the area due to the University of Central Lancashire’s Burnley Campus.

Burnley has good rail links to surrounding cities like Manchester and Preston, and residents can find everything they need in terms of amenities nearby. However, the town may not be as attractive to potential tenants as bigger cities, and the area’s crime rates are relatively high.

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The postcode BB10 covers Burnley Town Centre and some inner city suburbs, and this includes pricier areas like Cliviger and cheaper districts like Rose Hill. This part of Burnley is popular due to easy access to amenities and transport links.

Areas on the outskirts of the town, such as Padiham, are less convenient but can offer renters other advantages like more scenic settings and a semi-rural lifestyle.

Burnley Town Centre (BB10)

Average Property Prices in Burnley Town Centre

The average property price in this area is £149,496.

Average Rental Yield in Burnley Town Centre

The average rental yield in this area is 4.73%.

Average Property Prices in Rose Hill

The average property price in this area is £112,83.

Average Rental Yield in Rose Hill

The average rental yield in this area is 6.67%

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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Regeneration

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.

While new-builds can inspire significant interest from tenants, they often see higher price points compared to their more well-worn counterparts.

Off-plan property investment is one way to invest in newly built properties at a more affordable level.

Investing off-plan means buying a property early into development before it has even been built. For investors, this usually means they can secure a property at a much lower price compared to the standard market value.

Buying early in the process means the property value can skyrocket when construction is completed. Typically,  the closer a property gets to completion, the more the value increases. As with standard new-build developments – particularly those in desirable areas – there is also strong rental demand, which could lead to higher rental yields in the long run.

The best off-plan investments will be concentrated in up-and-coming areas with solid infrastructure and growing job markets. Regeneration can also be a key indicator, with higher levels of regeneration usually signifying greater potential for new-build developments in the near future.

While there is some potential for off-plan investment within the Burnley rental market, it may be more profitable for investors to seek UK cities with more concentrated levels of new developments in the pipeline.