Property Investment in Burnley
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Burnley: A Town Of Changing Character
Burnley is best known for the Burnley Loom and its various mill engines. In the past, weaving mills dominated the town, producing clothing and fabrics for much of the UK and exporting worldwide.
However, today it is a thriving market town, and popular among hikers and cyclists, owing to its proximity to the Pennines. Its biggest employer is Safran Nacelles, an aerospace manufacturer, and it is also becoming a university town, thanks to the University of Central Lancashire’s expansion. Local attractions include its beautiful waterways, historic football team, and English Heritage sites such as Townley Hall and Thompson Park.
Burnley owes its recent success to various regeneration projects. Since 2010, local authorities and businesses have invested heavily in new business parks, schools, housing and a direct rail link to Manchester. Job growth is up by 5.6 per cent since 2009 and the town is actively involved in efforts to improve perceptions of Burnley as a place to live and work. In 2013, the Department for Business, Innovation, and Skills named the town as the Most Enterprising Place in the UK, reflecting its new post-financial crisis dynamism.
The local council is currently pushing the Burnley Town Centre and Canalside Masterplan, an urban renewal project that will see the town transformed in the coming years. Improvements include changes to the Nelson Rise shopping centre, the construction of new town apartments, and new footpaths and cycleways.
Burnley's Property Market
Properties in Burnley have an average price of £139,351, according to figures compiled by Rightmove. Most sales were for terraced houses, each selling for around £95,000, while detached homes were significantly more expensive at £279,000. Rents are around £500 per month in 2022.
Because of high yields, Burnley properties are in high demand. Here are some of the most popular areas and why:
- BB12 9AD, Ightenhill: This postcode is a rural area outside Burnley proper, home to rural workers, tenants and white-collar workers who commute to the town. It has a low crime score and reasonable house prices at £225,000 (though considerably higher than the rest of Burnley).
- Read, Ightenhill: Read is an area of Ightenhill and is home to blue-collar workers and their families. Both crime and house prices are low here, attracting buyers.
- Padiham, Ightenhil: Padiham is home to a working-class community. Close to good primary and secondary schools, it’s popular among young families. House prices are also exceptionally cheap compared to the rest of the UK at just £85,000.
Why Is Burnley A Good Choice For Property Investors?
In the past, many investors discounted buy to let in Burnley. However, the market is changing, and new dynamics are working in the town’s favour.
Perhaps the biggest reason to invest in Burnley is the fact that it has the highest yields of any hub in the country, estimated to be around 7.1 per cent. Buy-to-let property prices in Burnley are low, so the returns on cash invested are exceptionally high.
Burnley also has tremendous potential. Significant investment is finally coming to the city. And the rise of remote working is making it a more popular choice among individuals and families looking for a lower cost of living outside the major cities, particularly with the recent increases in cost of living.
Burnley is also a place where buy-to-let investors can go to escape overpriced markets in the south east of the UK. It is possible to buy a home with rental potential for around £60,000 in Burnley, meaning an investor could potentially take out a 75 percent loan-to-value (LTV) mortgage for just a £15,000 deposit and make around £5,000 per year in gross income. That would imply a cash-on-cash return of 33%.
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All information accurate as of June 2022.