An income-producing pair of licensed large HMOs in a newly designated Article 4 area, recently refurbished and tenanted by the NHS Foundation Trust. With no ongoing management required and secure income in place, the asset offers strong returns and built-in capital growth.
Location & Market
Located in one of Bristol’s most desirable commuter zones, the properties are surrounded by key employment hubs including Southmead Hospital, Airbus, and MOD Abbey Wood. The area is also near Brabazon, a major regeneration project. With Article 4 introduced in January 2024, new HMO conversions are now restricted, reinforcing the long-term value of existing stock.
Key Metrics
- Passing rent of £13,600/month, fully let to the NHS Foundation Trust on ASTs.
- 3-year lease agreed from August 2025 with a residential care provider at the same rent.
- RICS valuation: £2,030,000 (Dec 2023).
- Purchase price: £1,800,000, representing an 11.3% discount to RICS.
- Forecast 10-year IRR: 8.1%, with cumulative £1.78m profit on exit.
- No professional management required; tenants self-manage under block tenancy
Scope
- Two licensed large HMOs (Sui Generis) across 8-bed and 9-bed layouts
- Total 246 sq.m. internal area; both properties recently extended and refurbished
- Turnkey, income-producing assets with minimal ongoing obligations
- Article 4 location ensures barrier to entry for new supply
Why This Project?
- Secure, cash-flowing asset in a supply-restricted area
- Tenanted by blue-chip operator (NHS) with lease rollover secured
- Article 4 uplift protects long-term value and supports capital growth
- No active asset management required, ideal for hands-off investors
- Proven rental performance and clear upside on refinance or yield-based disposal
Next Steps
Investor interest is now being gathered. For the full investment pack or to express early interest, please get in touch.
