When you think of investment opportunities in the UK, the small town of Burnley may not be at the top of your list.
However, according to a recent study by Payless For Storage, Burnley has emerged as a surprising hotspot in the UK property market.
The study conducted by Payless for Storage measured the time between a property being listed for sale and the property being sold and noted that properties in Burnley sold 58% faster than the national average.
Why the Property Boom in Burnley?
So, what exactly has caused the boom in the Burnley property market? There are several factors that appear to be at play here.
First, and perhaps most importantly, affordability. Burnley is one of the most affordable locations in the UK, with the average property price being £103,000. This is less than half the national average of £264,900.
Another contributing factor to the property boom in Burnley is that the average property price in Burnley is only slightly higher than the £93,000 most home buyers are paying.
Furthermore, Burnley has seen significant population growth, growing 8.7% between 2011 and 2021, 2.2% higher than the national average.
What Does this Mean for Investors?
So, what does all of this mean for investors, and should investors be looking at Burnley as a prime location for their next investment property?
As of right now, the demand remains high due to the affordability of housing, which has become an increasingly important consideration given the financial strain many people have endured over the last few years.
Moreover, the price point of many Burnley properties is within reach of not only first-time home buyers but also those looking for a more affordable property to rent and investors looking to buy their first investment property.
More Than Just Affordability
However, price is not the only thing Burnley has going for it.
It’s also conveniently located, with rail and road networks connecting it to major cities like Leeds, Liverpool, and Manchester.
It’s also a town that attracts a lot of students attending the University of Central Lancashire (UCLAN). The university was recently recognised as one of the top 15% of universities in the world for its positive impact on society and the environment.
This is a notable achievement that should continue to attract more students to the area. This will increase the demand for affordable rental units, which should positively impact the rental market.
Lastly, investors looking to enter the holiday rental market may also find Burnley an attractive location. The town is 80% rural and boasts beautiful parks such as Queen’s Park, Thompson’s Park, and Ightenhill Park.
Holiday rentals in Burnley typically command higher yields than elsewhere in the UK.
In summary, Burnley has ridden the wave of migration out of the bigger, more expensive cities, and its property boom is indicative of these trends.
However, the town also offers a fantastic quality of life, attracts a lot of students, and is a wonderful little tourist destination.
Therefore, investors should seriously consider adding Burnley to their list of towns when looking for their next – or first investment property.