Let’s take a snapshot of the HMO sales market in the Plymouth area, focusing on six-bedroom HMOs. Currently, there are 15 six bedroom HMO properties listed on Rightmove. Of these, 7 are sold subject to contract (SSTC), leaving only 8 still available for purchase.
The price range for these properties spans from £250,000 to £375,000. Unsurprisingly, the most expensive property, listed at £375,000, is still for sale. On average, a room in a six-bedroom HMO costs just over £50,000. Based on the listings that include rental data, the average gross yield is 11.88%. This is 0.4% more than the average for 5 bed HMOs.
Looking at the six-bedroom HMOs marked as SSTC, the most expensive property sold is listed at £325,000, while the highest gross yield is 15.38%—unsurprisingly, this corresponds to the cheapest property in the category £250,000. The average price per room for SSTC properties is £47,857, and the average gross yield is 12.75%. It has taken an average of 125 days for these properties to go under offer, with the shortest time to SSTC being just 45 days and the longest a substantial 437 days.
For the 8 properties still on the market, the most expensive remains listed at £375,000. The highest gross yield for these properties is 12.41%. However, the average gross yield for unsold properties is 11.12%, which is 1.6% lower than the SSTC average. Additionally, the average price per room for these unsold properties is higher, at £53021.
The Plymouth HMO market demonstrates that competitively priced properties with attractive yields tend to sell more quickly. High-yielding properties often secure offers faster, while more expensive listings may remain on the market longer, likely due to lower perceived returns. Investors aiming for strong gross yields should prioritize properties at the lower end of the price range, where faster sales and better returns are more achievable. This analysis underscores the critical balance of pricing, yield, and market timing for both buyers and sellers in the HMO sector.
