City Centre Student Accommodation Portfolio

Location

The portfolio comprises properties located throughout Lancaster city centre, one of the North West's most established student markets and home to both Lancaster University and the University of Cumbria. Together, these institutions attract thousands of students from across the UK and around the world each academic year, creating sustained demand for quality student accommodation.

The properties are situated on Aberdeen Road, Adelphi Street, Prospect Street, and Ridge Street, all well-established student locations surrounded by similar HMO accommodation and popular with both undergraduate and postgraduate tenants. Each property benefits from excellent public transport links, with regular bus services providing convenient access to both university campuses.

In addition, all properties are within easy reach of Lancaster's city centre, offering students convenient access to shops, supermarkets, cafés, bars, restaurants, and leisure facilities. This combination of prime locations, strong transport connections, and proximity to key amenities underpins the portfolio's consistent letting performance and long-term investment appeal.

Description

An exceptional opportunity to acquire a portfolio of seven HMO student properties, providing an established and income-producing investment package within the popular Lancaster student rental market. The portfolio comprises well-established student accommodation located across a variety of sought-after areas around Lancaster city centre, offering both geographical diversity and a strong letting history.

Six of the seven properties are currently let through to the end of the 2027 academic year, with the remaining property temporarily vacant while improvement works are completed, including the installation of a new kitchen. This property has already generated strong levels of interest from prospective tenants and is expected to offer further rental potential once the works have been finalised.

When fully occupied, the portfolio generates a combined annual rental income of approximately £121,344, offering investors an attractive opportunity to acquire a ready-made student accommodation portfolio with an established track record. Whether looking to expand an existing portfolio or enter the student investment market, this represents a rare opportunity to secure multiple quality HMO assets within one of the UK's recognised student locations. The properties are let and managed by Mighty Student Living based in Lancaster city centre.

Accommodation Text

Portfolio Breakdown

88 Aberdeen Road - 3 Bedrooms | 1 Bathroom
90 Aberdeen Road - 3 Bedrooms | 3 Bathrooms
1 Adelphi Street - 2 Bedrooms | 1 Bathroom
18 Prospect Street - 5 Bedrooms | 2 Bathrooms
36 Prospect Street - 2 Bedrooms | 2 Bathrooms
68 Prospect Street - 2 Bedrooms | 2 Bathrooms
30 Ridge Street - 3 Bedrooms | 1 Bathroom

The portfolio comprises a collection of traditional terraced properties arranged over multiple floors, providing well-established and practical student accommodation. Several properties include additional lower ground floor space with existing kitchens, bathrooms, or further usable areas, adding flexibility and enhancing the overall layouts.

All properties are maintained to a good standard throughout, featuring modern kitchens and bathrooms suited to the current student market. External spaces are also available across the portfolio, varying in size and style, creating a well-presented and ready-made investment package with strong tenant appeal.

Services

Mains water, electric and gas all connected. For some properties, tenants are responsible for utility bills, while others have utilities included within the rent. Please enquire for further information.

EPC Information

88 Aberdeen Road - EPC Rating D
90 Aberdeen Road - EPC Rating D
1 Adelphi Street - EPC Rating D
18 Prospect Street - EPC Rating D
36 Prospect Street - EPC Rating D
68 Prospect Street - EPC Rating D
30 Ridge Street - EPC Rating E

The Opportunity

88 Aberdeen Road - £129.00 per week | £18,576.00 annual income (48 weeks)
90 Aberdeen Road - £133.00 per week | £19,152.00 annual income (48 weeks)
1 Adelphi Street - £118.00 per week | £11,328.00 annual income (48 weeks)
18 Prospect Street - £133.00 per week | £31,920.00 annual income (48 weeks)
36 Prospect Street - £118.00 per week | £11,328.00 annual income (48 weeks)
68 Prospect Street - £118.00 per week | £11,328.00 annual income (48 weeks)
30 Ridge Street - £123.00 per week | £17,712.00 annual income (48 weeks)

The portfolio has potential to generate income of approximately £121,344 for 2026-2027 accidemic year (6 out of 7 currently have agreements in place for 2026/2027 academic year) providing an established income stream within Lancaster's strong student accommodation market.

Based on the current income levels, the portfolio produces an attractive gross yield of approximately 10.79%, highlighting the strength of the investment opportunity. There is also potential for an investor to further improve returns through a strategic restructuring of the portfolio, including the option to sell selected smaller properties individually to residential purchasers.

Based on current market conditions, retaining the stronger income-producing assets could provide an opportunity to achieve a potential yield of approximately 13.34% from the remaining properties.

Extra Information

Purchasing the portfolio as a single transaction may offer a Stamp Duty Land Tax (SDLT) advantage when compared with acquiring the properties individually. As the portfolio comprises seven residential dwellings, the transaction may qualify for the six-or-more dwellings treatment, resulting in SDLT being calculated at non-residential rates. Based on our estimates of individual property values we estimate a stamp duty saving of circa £35,000 as compared to buying these properties individually (purchaser should obtain their own tax advice).




VAT

All prices quoted are exclusive of VAT, but may be liable. This transaction is not subject to VAT.