46 Downs Road, Luton, Bedfordshire, LU1 1QR

Description

A Mid Terrace Building Arranged to Provide a Five Room Fully Licensed HMO and Two Self-Contained Studio Flats Part Let Producing £29,880 Per Annum (Reflecting a 14% Yield on the Guide Price)

Accommodation

Five room fully licensed HMO and two self-contained studio flats

Location

The property is situated on a residential road close to local shops and amenities. The open spaces of Brantwood Park are within easy reach. Transport links are provided by Luton rail station.

Tenure / Property Information

Investment Analysis

Same-road completed sales range from £205,000 to £360,000. The £345,000 May 2026 sale provides the closest recent reference, but the comparables are not confirmed as equivalent HMO/studio investments. Indicative GDV scenarios are therefore £270,000–£360,000, with £345,000 as the base case, subject to condition, licensing and legal-pack review.

Investment Snapshot

Strategy Recommendation

Investigate as an income-led HMO/studio investment, subject to verifying occupancy, rents, licensing, condition and all legal-pack costs. Do not rely on the headline yield alone.

Works Required

No condition defects or works scope are supplied. Confirm condition, HMO compliance, studio installations and any required works through inspection and the legal pack.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

At the £345,000 indicative base GDV, 75% refinance is £258,750. The apparent refinance headroom is unquantified because refurbishment costs, disbursements and other acquisition costs are unknown. Current part-let income supports the concept, but occupancy and rent assumptions require verification.

Buy-to-Let Analysis

Part-let income is stated at £29,880 per annum, equivalent to £2,490 pcm and a 14.23% gross yield on the £210,000 guide, before fees and costs. The auctioneer estimates £40,800 per annum when fully occupied, equivalent to £3,400 pcm and a 19.43% gross yield on the guide. No external rental comparables or operating-cost evidence are supplied, so net yield cannot be established.

Flip Analysis

The £345,000 base GDV is supported only by non-equivalent or insufficiently detailed same-road sales. A flip surplus cannot be calculated because works, selling costs and full acquisition costs are unsupported.

Investor Risks & Due Diligence

• Current income reflects part-let occupancy and may not be passing at full occupation.

• The £40,800 fully occupied figure is an auctioneer estimate rather than achieved rent.

• No condition, refurbishment or operating-cost information is supplied.

• Special-condition disbursements and other purchaser costs are unknown.

• The sales evidence is not confirmed as directly comparable to this licensed HMO and studio configuration.

Recommendation

Investigate as an income-led HMO/studio investment, subject to verifying occupancy, rents, licensing, condition and all legal-pack costs. Do not rely on the headline yield alone.

Strategy Rating

Analysis Confidence

Completed sales, current income, full-occupancy estimate and one known auction charge are supplied, but condition, works, external rental evidence, operating costs and legal-pack disbursements are absent.