Mish Liyanage, managing director of The Mistoria Group, explained that it is still possible to acquire high-quality HMOs near universities in the North West for between £125,000 and £350,000.
She said: “For example, in Liverpool, investors can acquire a three-bed fully let property for around £125,000, which will house students and young professionals.
“Rents around £90 per week per room, including bills.
“Our Liverpool, Salford and Bolton lettings offices have seen buy-to-let investment in the North west go from strength to strength over the last five years, with investors enjoying cash rental yields of over 8% rental yields and 5% capital growth with-in a mile’s radius from the universities/city are excellent.
“Our research shows that student house share rents start at around £85 per week per room, including bills.
“However, ensuites and large bedrooms can be as high as £125 per week.”
Liyanage pointed to recent Halifax research, which found that property prices reached another record high in May, with the typical home now worth nearly £262,000, £22,000 (9.5%) more than in May 2020.
Prices increased by £3,000 (1.3%) between April and May of this year, although that was slightly lower than the 1.5% growth the previous month.
All regions bar the North East saw an acceleration in year-on-year house price inflation last month.
Liyanage added: “Investors can acquire a high quality three-bed fully let HMO near a university, which will house students from £125,000 upwards.
“The return on investment is very attractive too, with an average of 13% per annum (8% cash rental and 5% capital growth).
“We have seen almost 8% increase in the sale of our armchair HMO deals over the last 12 months compared.”
