Let’s take a snapshot of the HMO sales market in the Plymouth area, focusing on medium sized ( 7 to 9 Bedrooms) HMOs. Currently, there are 18 HMO properties listed on Rightmove of this size. Of these, 8 are sold subject to contract (SSTC), leaving only 10 still available for purchase.
The price range for these properties’ spans from £265,000 to £550,000. Unsurprisingly, the most expensive property, listed at £550,000, is still for sale. On average, a room a medium sized HMO costs just over £46,000. Based on the listings that include rental data, the average gross yield is 12.24%.
Looking at the medium sized HMOs marked as SSTC, the most expensive property sold is listed at £385,000, while the highest gross yield is 16.75%—unsurprisingly, this corresponds to the cheapest property in the category £265,000, which sold in 4 days!!. The average price per room for SSTC properties is £42969, and the average gross yield is 13.12%. It has taken an average of 108 days for these properties to go under offer, with the shortest time to SSTC being just 4 days and the longest a substantial 679 days.
For the 10 properties still on the market, the most expensive remains listed at £550,000. The highest gross yield for these properties is 12.88%. However, the average gross yield for unsold properties is 11.45%, which is 1.6% lower than the SSTC average. Additionally, the average price per room for these unsold properties is higher, at £49152.
