Are you looking for a lucrative investment property in the UK? Look no further than Barnsley, a town in northern Yorkshire that has become a hotspot for investors interested in House in Multiple Occupation (HMO) properties. With its attractive property prices, growing local economy, and high demand for rental properties, Barnsley is the ideal location for savvy investors seeking strong returns on investment. Let’s dive into why this area, specifically the 7-bedroom HMO property on Sheffield Road, Barnsley, is a prime opportunity for your next investment.
Why Invest in Barnsley?
Barnsley offers an exciting investment opportunity thanks to its strategic location, economic growth, and rental demand. As a northern Yorkshire city just off the M1 motorway, Barnsley is perfectly positioned for those seeking proximity to major cities like Sheffield and Leeds. Additionally, the town benefits from excellent transport links, including Barnsley station, which is just half a mile from the town center. With easy access to the M1, M18, and A1 motorways, Barnsley offers direct routes to London, which is about 3 hours away by car.
The town is also experiencing economic regeneration, making it an even more attractive prospect for property investors. Key employers such as ASOS and Premier Foods have operations in the area, driving demand for affordable housing options like HMOs. The “Enterprising Barnsley” program, introduced by the local council, is also fostering business growth by attracting small to medium-sized businesses to the area.
Moreover, the limited supply of new HMO properties due to local planning restrictions (Article 4) makes Barnsley even more desirable for investors seeking high rental yields. The combination of affordable property prices, strong rental demand, and stable long-term capital appreciation makes Barnsley a highly attractive destination for investment.
Introducing the Property: 7-Bedroom HMO on Sheffield Road, Barnsley
This 7-bedroom, two-storey, detached House in Multiple Occupation (HMO) located on Sheffield Road, Barnsley, represents an exceptional opportunity for investors looking to generate high rental yields. The property generates a total weekly rental income of £710, equating to an annual income of £36,920. Recently refurbished in 2016, the property is in excellent condition, ensuring minimal upfront costs for maintenance or renovation.
Key Features of the Property:
- 7 Bedrooms: The property features a combination of five double bedrooms, two single bedrooms, and a spacious kitchen diner.
- Modern Amenities: Fully equipped with a spacious kitchen diner, communal sitting room, and TV surveillance system.
- Ensuites and Shared Bathroom: Four double ensuites with additional kitchenette facilities in two rooms, with three rooms sharing a communal bathroom.
- External Spaces: Front and rear gardens.
- Location: Less than 10 minutes’ walk to Barnsley town center, supermarkets (Tesco, Asda), and Barnsley Interchange (bus and train stations). Barnsley Hospital is also close by.
This HMO property’s strategic location near local amenities and transport hubs, along with its modern facilities, make it an ideal choice for both students and working professionals. Additionally, Barnsley’s growing economy, with its focus on manufacturing, logistics, and business development, further supports the case for a steady and profitable rental market in the region.
Why HMO Properties Are a Smart Investment
Investing in HMO properties offers several distinct advantages over traditional buy-to-let investments. HMOs are ideal for investors seeking higher rental yields and long-term stability. Here’s why:
- Higher Rental Yields: Due to the room-by-room rental model, HMO properties typically generate higher rental income compared to single-unit buy-to-let properties. Investors can capitalize on the demand for affordable rental accommodation, especially in areas like Barnsley, which is popular with young professionals and students.
- Stable Demand: With Barnsley’s growing employment base and expanding economy, there is a constant demand for rental properties. The town’s excellent transport links, proximity to major employers, and affordable living costs make it a popular destination for renters, ensuring high occupancy rates for HMO properties.
- Capital Appreciation: The ongoing economic regeneration in Barnsley offers the potential for long-term capital appreciation, meaning your investment could grow in value as the area continues to develop.
- Limited HMO Supply: Local planning restrictions, such as Article 4, limit the number of new HMOs being developed, giving existing HMO properties like the one on Sheffield Road a competitive advantage.
Investment Potential and Returns
The property on Sheffield Road is well-positioned to deliver a strong return on investment (ROI). Given Barnsley’s affordable property prices, the low cost of acquisition, and the high rental demand, the potential for high yields is substantial. Below is a breakdown of expected income and costs for investors:
Purchase Price: £260,000
Rental Income (per month): £3,076.67
Annual Rental Income: £36,920
Gross Yield: 12.8%
Monthly Operating Expenses (MOE): £634
Letting Fees: £424 (13.8% incl VAT)
Potential Cash Flow per month: £2,018.67
Net Yield: 8.4%
Sourcing Fee: TBA
Q&A Section
- What makes Barnsley a great place for HMO investment?
Barnsley’s affordable property prices, strong rental demand, economic regeneration, and limited new HMO supply make it an excellent location for property investors. With key employers like ASOS and Premier Foods, the area attracts a steady stream of tenants looking for affordable housing options. - What are the key advantages of investing in HMOs?
HMOs provide higher rental yields, stable demand, and long-term capital appreciation. By renting out individual rooms, investors can generate more rental income than traditional buy-to-let properties. Furthermore, HMOs cater to tenants in need of affordable living arrangements, ensuring a steady stream of tenants. - How much gross rental income can I expect from this HMO property?
With seven bedrooms, including ensuite rooms and rooms with kitchenette facilities, this property has the potential to generate around £3,077 per month in rental income, based on current occupancy and market conditions. - Is Barnsley experiencing growth?
Yes, Barnsley is undergoing economic regeneration, with the local council promoting business development and infrastructure improvements. With major employers in the area and an increasing demand for rental housing, Barnsley is a location poised for continued growth. - What are the expected costs of managing an HMO?
Costs such as bills, maintenance, insurance, and letting fees should be factored into your calculations. For this particular property, running costs are estimated at £12,696 per year.
Conclusion
Investing in an HMO property in Barnsley, like the one on Sheffield Road, is a smart choice for investors looking for high rental yields, long-term capital appreciation, and a stable rental market. With its excellent location, modern facilities, and high demand for rental accommodation, this property offers an outstanding investment opportunity in a growing, dynamic town.
If you are interested in exploring investment opportunities with HomeSeekUK, please feel free to reach out to us. Our team of experts can help guide you through the process, from identifying the right property to securing financing and managing the investment.
For more information, or to schedule a viewing, please contact us at enquire@homeseekuk.com.
Invest in Barnsley with HomeSeekUK – Your Path to Property Investment Success!
