Recent news reports over the past week have named Burnley as the number one place in the UK for property investors to achieve the highest average rental yields.
The national average rental yield is 3.6%, Burnley is delivering an average of 7.1%.
What is it that gives Burnley the lead on other areas in the UK?
Looking at the facts and after completing further analysis the average house price in Burnley is just £76,000. This figure is dwarfed by London areas such as Chelsea and Kensington where average house prices over over 1 million pounds.
The rental demand and rental figures for properties in Burnley are more balanced and in line with the property value and demand for the area, rent on an area such as Chelsea average at £42,528 dropping the yield at less than the national average. Making comparison to Burnley we will use our own recent purchase as a metric – we recently agreed a purchase on a 3 bedroom end of terrace property requiring zero investment on refurbishment for £50,000 and have agreed a long term rental of £500 per month delivering a 12% gross annual yield.
It is not just the average price and balanced rental figures – Burnley is currently undergoing heavy Government and Heritage funded regeneration in many areas of the town putting it at number 1 in the UK for this type of funding and development which is cleaning up many areas of the town, especially the outskirts and major road routes into the town centre such as Accrington Road, Trafalgar Street, The Weaver’s Triangle and more.
The town centre has benefited from a lot of development over the past 2 years and huge retail brands such as Primark have just opened in the town pulling in lots of interest and extra revenue for the centre as well as giving surrounding businesses a boost.
Burnley also boasts a UCLAN (University of Central Lancashire) Campus which is attracting record number of students from out of town and increasing rental demand amongst students. It was announced in January that UCLAN planned to increase students in the town by tenfold and to hugely expand the campus in Burnley by 2025 (Source BBC https://www.bbc.co.uk/news/uk-england-lancashire-42884453)
A direct rail link to Manchester has now been re-opened after many years closed meaning that Manchester business and student commuters have better options than ever before to travel to the city from Burnley without the need for long, busy bus or car journeys down the motorway.
Lastly – let’s not forget Burnley Football Club has just had it’s best season in over half a decade with a top 7 finish and European football on the cards this season, this is sure to attract huge media and investor interest in the town with the team performing consistently better year on year.
Taking all the above factors into account, we truly can say with confidence – Burnley is the place to invest in property!
(Image Credit to Roy Ainsworth Photography)