Many landlords want a balance between capital growth and income. Houses of Multiple Occupancy (HMO’s) can fulfil both these requirements. Take for example this six bedroom property on Lodge Close. It is well within walking distance of Brunel University. The asking price is £520,000 and the annual income is £29,400 which makes for a yield of 5.6%.
Now 5.6% yield is not particularly high yield for a HMO, but it is a high yield for a property of this size in the Uxbridge Area. The average yield on a freshly purchased four bedroom property would be around 3.7%. Outside HMO’s smaller property which has most tenant demand is the target for Buy To Let (BTL) investors.
The Effects of Article 4 Direction
Article 4 stops new larger student property being created in the Uxbridge South and Brunel Wards without planning permission. We will see the price of HMO’s steadily increase over their non HMO neighbours which has been seen in other parts of the country.
Don’t buy a large house expecting to be able to make it into a HMO in these wards without understanding Article 4 first.
Lodge Close
Situated on the Cowley High Street it’s an easy walk to Brunel. Along the High Street is access to the campus and the accommodation blocks or the main campus is just off Station Road and Cleveland Road.
If you are interested in HMO’s near a world class University this one could well be worth further investigation.
