Yield is the number that decides whether a buy-to-let is worth owning. It is also the number most often quoted without the costs that sit underneath it. This page sets out what a two-bedroom terrace actually achieves across Burnley and Pendle, using the rents our own managed properties are letting at now rather than a forecast.
What a two-bed terrace yields, town by town
| Town | Typical all-in cost | Typical rent pcm | Gross yield |
|---|---|---|---|
| Nelson | £55,000 – £75,000 | £650 – £700 | around 12.5% |
| Burnley and Padiham | £60,000 – £80,000 | £650 – £750 | around 12% |
| Colne | £60,000 – £90,000 | £700 – £850 | around 12% |
| Barnoldswick | £65,000 – £90,000 | £700 – £850 | around 12% |
| Barrowford | £80,000 – £110,000 | £750 – £900 | around 10.5% |
| Clitheroe | £110,000 – £150,000 | £800 – £950 | around 8% |
All-in cost means purchase price plus the refurbishment needed to bring a tired terrace up to a good letting standard. Gross yield is annual rent divided by that figure, before costs. These are current achievable ranges for standard two-bed stock, not a forecast or a recommendation.
We do the whole thing for you
These numbers only work if somebody buys the right property at the right price and finishes it properly. That is what we do, and it is why a good number of our investors have never set foot in the house they own.
- We find it. Off-market wherever we can — landlords selling up, probate sales, refurbishments that have stalled. The best deals here rarely reach Rightmove.
- We view it in person and tell you what an old stone terrace is hiding. Damp, roof, wiring, and whether the last owner’s “recent refurb” was anything of the sort.
- We price the work honestly and carry it out with our own trades. The figure we agree is the figure you pay — no percentage on top, no mark-up on materials.
- We let it and manage it afterwards if you want. Marketing, referencing, rent, repairs and compliance. You receive a statement.
Sourcing is a fixed fee of £2,495 per property, paid in three stages as the deal progresses. See exactly how our property sourcing service works.
Buying from overseas? Several of our investors live abroad. Identity checks, the solicitor, the refurbishment and the letting are all handled remotely, and you receive photographs and video at each stage. You never need to fly over.
The highest rent is not the highest yield
Clitheroe has the strongest rents in the area and the weakest yield on this table. It is a desirable market town and you pay for that in the purchase price. Nelson has the lowest rents and the highest yield, because houses there are cheap.
That trade-off is the whole decision. A higher-yielding town generally means a lower quality of stock, longer voids in a bad year, and a tenant base with less margin if their circumstances change. A lower-yielding town generally means an easier let, a better resale, and more capital growth. Neither is wrong. What matters is knowing which one you are buying.
What gross yield leaves out
Gross yield is a comparison tool, not an income figure. Against it you need to set:
- Voids. Our average time to let is around four weeks, including referencing and credit checks, but budget for a gap between tenancies.
- Management. Full management is 10% of the monthly rent, or a fixed £450 if you only want a tenant finding.
- Maintenance. Older stone terraces need work. Roofs, pointing, damp and boilers are the recurring items.
- Compliance. Gas safety, electrical inspection, EPC, and selective licensing where it applies. See selective licensing in Burnley and what EPC C by 2030 means.
- Tax, and your mortgage if you have one.
A property returning 12% gross is realistically returning somewhere in the high single digits net once all of that is paid, and that is still a strong return for the money involved.
Why the numbers work in this area
Purchase prices here have stayed low while rents have held up. A terrace that costs £70,000 in Nelson would cost several times that within an hour’s drive south, and would not let for several times the rent. That gap is what produces the yield, and it has been consistent for years rather than being a spike.
Tenants are overwhelmingly local working people on long tenancies rather than short-term lets, which is what makes the rents dependable rather than merely high.
Buying at the right price is most of the work
Every figure above depends on the first one. Pay the asking price for a terrace that needs £20,000 spending and the yield falls apart before you have found a tenant. The deals that produce these numbers are usually bought below the advertised price, and often before they are advertised at all.
That is what our property sourcing service does: we find the property, run the numbers honestly, tell you what it will really cost to bring up to standard, and hand you something ready to let. If you want the refurbishment and the letting handled too, we do that with our own trades.
If you would like to talk it through, call 01282 914155 or see how sourcing works.
Talk to us about a deal
Tell us your budget and the return you are after, and we will come back with what is actually available and the numbers written down. No obligation. If we cannot find something that works, we will tell you rather than lower the bar.
Get in touch · 01282 914155 · mjhorsfallproperties@gmail.com