Watson Street, Burton-On-Trent, DE14

Hortons are pleased to offer this fully licensed four bedroom HMO on Watson Street, Burton upon Trent. It is a high yielding investment in an Article 4 area.

Article 4 removes permitted development rights to convert family homes into small HMOs, so any new HMO in the area needs full planning consent. That limits new supply, which helps existing licensed HMOs like this one hold their value and keep tenant demand steady over the long term.

Conservative achievable rents total £1,733 pcm, or £20,796 a year. That gives a gross yield of 13.0% at the asking price of £160,000. Two tenants are already in place and the other two rooms have recently been vacated, ready to let straight away.

Based on a 25% deposit and an interest-only mortgage at 6%, the estimated net cashflow is £653 pcm (£7,836 a year) after mortgage and average bills cost. Total cash required is approximately £49,900, including stamp duty and legals. That is a return on cash invested of 15.7%.

There is also clear room to add value. Allowing around £10,000 for light refurbishment, rents could realistically be increased across the house.

On the ground floor there is a bedroom, a communal living room, a kitchen and a bathroom. Upstairs there are three further bedrooms, including a master bedroom with an ensuite shower room. Outside is a long rear garden with a patio. The house extends to approximately 842 sq ft.

This is a rare chance to buy a licensed HMO in a restricted area that pays from day one and has scope to grow

Disclaimer

In accordance with current legal requirements, all prospective purchasers are required to undergo an Anti-Money Laundering (AML) check. An administration fee of £40 per property will apply. This fee is payable after an offer has been accepted and must be settled before a memorandum of sale can be issued.