Leacroft Road, Derby, Derbyshire

Article 4 incoming in Derby making these up-and-running assets highly sought after.

Attractive High-Yield HMO Investment Opportunity
Property Address: 48 Leacroft Road, Derby, DE23 8HT
Property Type: 6-Unit HMO comprising of 5 Studios and 1 Ensuite Room (Licensed for 7 People - 1 Room is Double Occupancy)
Management: Professionally Managed by Number 1 Rooms

Prime Investment Location in Derby's Thriving Residential Area

Located in the popular DE23 residential area of Derby, this high-yield HMO property offers an excellent investment opportunity. Derby is a key city in the East Midlands, recognized for its robust economy and growing demand for quality rental properties. The property at 48 Leacroft Road benefits from its proximity to Derby's city centre, major employers, and local amenities, ensuring a steady flow of tenants, particularly professionals working in Derby’s booming engineering and aerospace sectors.

The city's economy is driven by major employers like Rolls-Royce, Toyota, and Bombardier, creating a strong rental demand from professionals employed by these industry leaders. In addition, Derby is home to the University of Derby, which attracts a large student population, further boosting demand for well-managed HMOs.

Excellent Transport Links and Accessibility

The property on Leacroft Road is ideally situated with access to major transport links, making it an attractive location for professionals and commuters. The nearby A38, A50, and M1 motorways provide easy connections to major cities like Nottingham, Birmingham, and Leicester, while Derby railway station offers regular services to London and other major UK cities. These transport connections make the property highly appealing to both local professionals and commuters, ensuring consistent tenant demand. Additionally, the local bus network and cycling routes enhance mobility, making the property accessible and convenient for a wide range of tenants.

Regeneration and Long-Term Growth Potential

Derby is experiencing significant regeneration, with the city’s £3.2 billion masterplan aimed at transforming infrastructure, housing, and retail sectors. Ongoing projects like the Castleward regeneration scheme and the Becketwell redevelopment are set to further increase Derby’s appeal, contributing to rising property values and higher rental demand. Derby’s many attractions, such as the Derby Arboretum and a range of shops, restaurants, and cultural venues, also add to its desirability as a residential location.

Financial Summary

Income Breakdown (Monthly):
Room 1: £675.00
Room 2: £675.00
Room 3: £575.00
Room 4: £625.00
Room 5: £725.00
Room 6: £750.00
Total Monthly Income: £4,025.00
Annual Income: £48,300.00

Expenditure Breakdown (Monthly):
Gas and Electric: £250.00
Water: £70.06
Council Tax: £124.90
TV License: £26.00
Broadband: £38.40
Cleaner: £50.00
Management: 8% of rent (£322.00 per month)
Total Monthly Expenditure: £881.36
Annual Expenditure: £10,576.32

Net Annual Income: £37,723.68 (calculated as Total Income - Total Expenditure)

Gross Yield: 11.93% (calculated as Annual Income / Sale Price)

Net Yield: 9.34% (calculated as Net Annual Income / Sale Price)

Investment Highlights

High Demand Location: Situated in a sought-after residential area in Derby, with excellent transport links and easy access to local employers and amenities.
Attractive Yields: Offering a gross yield of 11.23% and a net yield of 8.77%, with relatively low operating costs.
Fully Managed: The property is professionally managed by Number 1 Rooms, ensuring smooth operations and reducing landlord involvement.
Established Tenancy: The property is fully occupied, generating strong rental income from tenants working in Derby’s thriving industrial and academic sectors.
Ongoing Regeneration: With Derby’s significant investment in infrastructure and housing, the property is well-positioned to benefit from future capital appreciation and rental growth.

Conclusion

The property at 48 Leacroft Road, Derby, offers a solid investment opportunity with attractive rental yields and minimal operating expenses. Its location in a high-demand area, combined with Derby's strong economy and regeneration projects, ensures long-term tenant demand and future capital growth potential. This well-managed HMO is a standout investment for those looking for stable returns in one of the East Midlands' key cities.

HMO Sales Expert are specialists within the HMO and multi-unit marketplace across the UK. Our experienced team has a combined 100+ years of specific HMO experience including investing, managing, developing, valuing and selling. Every property is exclusively listed, direct to landlord, visited and quality-checked by our team and is sold with NO BUYER FEES or reservation costs. Full access to every financial detail and a pro-active and time-served team to assist you.