London Road, Alvaston, Derby, Derbyshire

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Attractive HMO Investment Opportunity

Address: 629 London Road, Alvaston, Derby, DE24 8UQ
Property Type: 6-Bed, All Ensuite HMO with Kitchen, Living, and Dining Facilities
Tenant Type: Fully Tenanted by Working Professionals

Prime Investment Location

Derby, a key city in the East Midlands, offers a compelling investment opportunity, particularly in the residential rental market. The city has a stable and diverse economy, supported by major industries such as aerospace, manufacturing, education, and technology. Leading employers include Rolls-Royce, Toyota, and the University of Derby, ensuring a steady demand for rental properties. As one of the fastest-growing cities in the region, Derby is benefiting from ongoing infrastructure investments and regeneration projects, further enhancing its appeal for property investors.

Tenant Demand & Market Strength

Derby’s rental market is fuelled by its large student population, skilled professionals, and key workers. The University of Derby plays a major role in driving demand for HMOs, as students and young professionals seek high-quality, affordable accommodation close to key employment hubs. The property at 629 London Road, Alvaston, DE24 8UQ, is strategically located near major transport links, key business districts, and essential amenities, making it an attractive rental option for tenants.

The city's affordability and strong employment opportunities continue to attract professionals and families, ensuring a stable and growing rental market. As Derby's economy continues to expand, the demand for high-quality HMO properties is expected to remain strong, offering consistent rental yields and long-term investment potential.

Connectivity & Regeneration

Derby benefits from excellent transport links, making it an ideal location for commuters and businesses alike. The city’s railway station provides direct services to London, Birmingham, and Nottingham, offering easy access to employment hubs across the UK. The A38 and M1 motorways provide strong road links, ensuring seamless connectivity to surrounding areas.

Ongoing city centre regeneration projects, including improvements in infrastructure and public spaces, are expected to drive property values and rental demand. With its rich cultural heritage, key attractions such as the Derby Museum and Art Gallery, and extensive amenities, Derby continues to strengthen its position as a prime location for property investment.

Financial Summary

Income Breakdown (Monthly):

Room 1: £475.00
Room 2: £450.00
Room 3: £420.00
Room 4: £475.00
Room 5: £550.00
Room 6: £550.00

Total Monthly Income: £2,920.00

Gross Annual Income: £35,040.00

Expenditure Breakdown (Monthly):

Gas: £51.09
Electric: £130.83
Water: £33.62
Council Tax: £130.00
TV License: £13.25
Broadband: £38.40
Management (12%): £354.00

Total Monthly Expenditure: £751.19

Annual Expenditure: £9,014.28

Net Annual Income: £26,025.72

Yields:

Gross Yield: 12.74% (calculated as Annual Income / Sale Price)

Net Yield: 9.46% (calculated as Net Annual Income / Sale Price)

Conclusion

The 6-bed HMO at 629 London Road, Alvaston, Derby presents a strong investment opportunity, offering a gross yield of 12.74% and a net yield of 9.46%, making it an excellent choice for investors seeking high rental returns. With a competitive purchase price of £275,000, this property provides a stable rental income, full occupancy, and long-term growth potential. Located in a high-demand area with strong employment hubs and excellent transport links, this HMO represents a low-risk, high-return investment opportunity in a thriving rental market.