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Attractive High-Yield HMO Investment Opportunity

Property Address: 70 Empress Road, Derby, DE23 6TE

Property Type: 6-Unit HMO comprising of 5 Studios and 1 Ensuite Room (Licensed for 8 People - 2 Rooms are Double Occupancy)

Professionally Managed by: Number 1 Rooms

Prime Location in Derby’s Thriving Rental Market

Derby, a key city in the East Midlands, presents a strong investment case, particularly for HMO properties. The property at 70 Empress Road is ideally situated in the DE23 area, offering easy access to Derby’s booming economy, which is driven by major employers such as Rolls-Royce, Toyota, and Bombardier. These companies are global leaders in the aerospace, automotive, and rail sectors, ensuring a steady demand for rental properties from professionals working in these industries. In addition to professional tenants, Derby’s large student population, especially from the University of Derby, boosts the demand for HMOs, providing consistent and reliable rental returns.

Exceptional Transport Links and Connectivity

Derby’s transport links make it an attractive destination for tenants. The property benefits from proximity to the A38, A50, and M1 motorways, providing convenient access to nearby cities like Nottingham, Birmingham, and Leicester. Derby train station offers fast and frequent services to London and other major cities, making it ideal for commuting professionals. The property is also well-served by local bus routes, providing easy access to the city centre and surrounding areas. This excellent connectivity makes 70 Empress Road a highly desirable location for both professionals and students who seek easy access to work, study, and leisure facilities.

Growing Market Potential through Regeneration

Derby is undergoing significant regeneration, with projects like the Becketwell regeneration scheme and the Derby City Centre Masterplan 2030 set to transform the city’s infrastructure, retail, and housing sectors. These developments are expected to drive up property values and attract further investment, creating substantial opportunities for capital appreciation. The city offers a high quality of life for residents, with cultural attractions like Derby Museum and Art Gallery, as well as a variety of parks, shops, and leisure facilities. With its combination of strong tenant demand, excellent transport links, and ongoing regeneration, 70 Empress Road is well-positioned to deliver strong rental yields and long-term capital growth.

Financial Summary

Income Breakdown (Monthly):

Room 1: £750.00

Room 2: £575.00

Room 3: £750.00

Room 4: £750.00

Room 5: £700.00

Room 6: £775.00

Total Monthly Income: £4,300.00

Annual Income: £51,600.00

Expenditure Breakdown (Monthly):

Gas and Electric: £447.13

Water: £47.05

Council Tax: £158.78

TV License: £26.00

Broadband: £38.40

Cleaner: £50.00

Management: 8%+VAT of rent (£412.08 per month)

Total Monthly Expenditure: £1,180.16

Annual Expenditure: £14,161.92

Net Annual Income: £37,438.08 (calculated as Total Income - Total Expenditure)

Gross Yield: 11.22% (calculated as Annual Income / Sale Price)

Net Yield: 8.14% (calculated as Net Annual Income / Sale Price)

Investment Highlights

Desirable Location: Situated in the DE23 area of Derby, this property benefits from proximity to major employers and local amenities, ensuring strong demand from professionals and students alike.

Attractive Yields: Generating a gross yield of 11.22% and a net yield of 8.16%, the property offers a solid return on investment with moderate management and operating costs.

Professional Management: The property is professionally managed by Number 1 Rooms, ensuring minimal involvement for the investor and smooth day-to-day operations.

Regeneration Potential: With Derby undergoing significant regeneration efforts, the property is well-positioned for capital growth and increased demand in the future.

Strong Tenant Demand: The proximity to key employers and the University of Derby ensures consistent occupancy and reliable rental income.

Conclusion

The property at 70 Empress Road, Derby, represents an excellent investment opportunity, offering high rental yields and benefiting from Derby’s thriving economy and strategic location. With low operating costs and consistent tenant demand from professionals and students, this HMO is poised to deliver strong financial returns and long-term capital appreciation.

HMO X are specialists within the HMO and multi-unit marketplace across the UK. Our experienced team has a combined 100+ years of specific HMO experience including investing, managing, developing, valuing and selling. Every property is exclusively listed, direct to landlord, visited and quality-checked by our team and is sold with NO BUYER FEES or reservation costs. Full access to every financial detail and a pro-active and time-served team to assist you.

Reference: XFG-6149410

Features

• High-Yield Investment: 70 Empress Road delivers a gross yield of 11.22% and a net yield of 8.14%, offering strong financial returns.
• Prime Location: Situated in Derby’s thriving DE23 area, close to major employers like Rolls-Royce, Toyota, and Bombardier, ensuring steady tenant demand.
• Professionally Managed: Managed by Number 1 Rooms, the property requires minimal investor involvement and ensures smooth operations.
• Strong Tenant Demand: The property's proximity to the University of Derby and key industrial employers guarantees consistent occupancy from both students and professionals.
• Excellent Transport Links: Close to the A38, A50, M1 motorways, and Derby train station, the property is ideally located for commuting professionals.
• Growing Market Potential: Ongoing regeneration projects, such as Becketwell and the Derby City Centre Masterplan, offer significant capital appreciation opportunities.
• Low Operating Costs: With annual expenses of £14,161.92, the property maintains a high net income of £37,438.08.
• Steady Rental Income: The property generates an annual income of £51,600 from fully occupied, all ensuite rooms, providing reliable returns for investors.