The Plymouth HMO sales market offers some fascinating opportunities, particularly when it comes to larger HMOs with 10 or more bedrooms. If you’re an investor eyeing the bigger end of the market, here’s what you need to know:
Current Market Snapshot – January 2025
- 13 large HMOs are currently listed on Rightmove.
- 4 properties are already Sold Subject to Contract (SSTC), leaving 9 still available.
Pricing Overview
- Prices range from £425,000 to a whopping £3,600,000.
- Unsurprisingly, the highest-priced property at £3.6 million remains unsold.
- On average, the cost per room in these large HMOs is just over £54,000.
- Listed rental data suggests an average gross yield of 10.75% across these properties.
What’s Selling?
Among the properties Sold Subject to Contract:
- The highest-priced SSTC property is listed at £1.5M.
- The top gross yield achieved is an impressive 12.23%.
- Average price per room for SSTC properties was £56,545.
- Average gross yield: 11.41%—notably higher than unsold properties.
Time on the Market
Among those SSTC…
- Fastest sale agreed was 21 days
- Longest sale agreed was 69 days
- Average time to go under offer was 41 days
This indicates that well-priced, high-yield properties are moving quickly—especially those with yields above 11%.
What’s Still Available?
Of the 9 properties still on the market:
- The most expensive listing remains at £3,600,000.
- Maximum gross yield available is 11.76%, but the average yield dips to 10.38%—around 1% lower than properties already under offer.
- Average price per room: £53,271—slightly lower than the SSTC average but still a substantial investment per unit.
Key Takeaways
Pricing and Yield Matter: Properties priced competitively with yields above 11% are attracting faster offers.
Timing is Crucial: The average time to secure a buyer is just over 40 days, but well-priced, high-yield properties can move in as little as 3 weeks.
High-Value Listings Struggle: The top-end properties, especially those priced over £1 million, tend to linger unless they offer exceptional returns.
If you’re considering investing in the Plymouth HMO market, now is a great time to evaluate price per room and expected yields carefully. The data suggests that properties offering a balance of affordability and strong returns are the ones moving fastest.
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