A substantial house of multiple occupation (HMO) located on Walnut Street, Leicester, made waves at auction this week, significantly surpassing its estimated sale price. Auctioneers hailed the property as being situated in a "prime" location, which contributed to the high level of interest it received from potential buyers.
This impressive HMO, featured in the latest catalogue from SDL Property Auctions, boasted six letting rooms spread across three floors. The main house includes five bedrooms and two well-appointed bathrooms, providing ample space for tenants. On the top floor, a modern studio room features its own en-suite bathroom and kitchenette, making it particularly appealing to renters.
According to the auction details released by SDL Property Auctions, the property was presented as being "in good order" and described as substantial, underscoring its strong potential for investment. The auction took place on January 30th, and at the time, five out of the six letting rooms were already occupied, offering immediate rental income for the new owner.
When fully let, the HMO is projected to generate approximately £39,540 per year, making it not only attractive for personal use but also as a lucrative investment opportunity. The property’s location, directly across from the Leicester Royal infirmary, enhances its appeal as it guarantees steady demand from health sector workers and students alike.
SDL Property Auctions had initially set the guide price for the lot at £285,000 plus auction fees, which piqued bidders' interest but was quickly eclipsed as the auction progressed. The final hammer price reflected the competitive nature of the bidding, indicating strong market confidence and demand for HMOs in Leicester.
This recent auction stands as another example of the resilience and strength of the property market within the region, particularly for rental investments, which are increasingly sought after due to their revenue-generation potential. "The HMO was described as being ‘in good order’ and presented as appealing to would-be buyers," as stated by SDL Property Auctions, highlighting the attractive condition and features of the property.
Interest continues to grow for similar properties within the Leicester area as investors look for reliable rental income streams. This auction results serve as a strong reminder of the lucrative opportunities available, especially for well-located HMOs such as this one. With demand unlikely to subside, the market for rental properties remains vibrant and competitive, making events like this particularly significant for both buyers and sellers alike.
All indications suggest the Leicester real estate market, particularly for HMOs, is thriving, making it conducive for investors aiming to capitalize on the rental sector. Given this recent success, it may be worthwhile for potential buyers to keep a close eye on upcoming auctions or similar listings, as the value and demand for quality rental properties appear to be on the rise.