Let’s take a snapshot of the HMO sales market in the Plymouth area, focusing on five-bedroom HMOs. Currently, there are 21 such properties listed on Rightmove. Of these, 15 are sold subject to contract (SSTC), leaving only 6 still available for purchase.
The price range for these properties spans from £210,000 to £340,000. Unsurprisingly, the most expensive property, listed at £340,000, is still for sale. On average, a room in a five-bedroom HMO costs just over £50,000. Based on the listings that include rental data, the average gross yield is 11.39%.
Looking at the five-bedroom HMOs marked as SSTC, the most expensive property sold is listed at £280,000, while the highest gross yield is 14.76%—unsurprisingly, this corresponds to the cheapest property in the category. The average price per room for SSTC properties is £48,467, and the average gross yield is 11.7%. It has taken an average of 177 days for these properties to go under offer, with the shortest time to SSTC being just 9 days and the longest a substantial 618 days.
For the 6 properties still on the market, the most expensive remains listed at £340,000. The highest gross yield for these properties is 11.9%, slightly higher than the average yield of the SSTC properties. However, the average gross yield for unsold properties is 10.58%, which is 1% lower than the SSTC average. Additionally, the average price per room for these unsold properties is higher, at £55,857.
The Plymouth HMO market shows a clear trend where competitively priced properties with strong yields are more likely to sell, often within shorter timeframes. While the highest-yielding properties attract quicker offers, the more expensive properties tend to linger on the market, likely due to lower perceived returns. Investors seeking strong gross yields should focus on properties at the lower end of the price spectrum, where the potential for faster sales and higher returns is more evident. This snapshot highlights the importance of balancing price, yield, and time on the market for both buyers and sellers in the HMO sector.
