589 Gloucester Road, Horfield, Bristol

Description

An imposing generously proportioned mid-terraced bay-fronted freehold period property arranged over 3 floors, with enclosed rear garden, arranged as a fully licensed 7 double-bedroom HMO with 4 bathrooms and an open-plan communal kitchen diner. The property is sold subject to existing tenancies and is described as requiring cosmetic updating.

Accommodation

Accommodation of 1,638 sq ft arranged over 3 floors; 7 double bedrooms, 4 bathrooms, open-plan communal kitchen diner and enclosed rear garden.

Location

Located on Gloucester Road in Horfield, overlooking Horfield Common. Local amenities including convenience stores, pubs and cafes are nearby. The University of the West of England is less than two miles away, Bristol City Centre is approximately five miles away, and Southmead Hospital is within walking distance. Filton Abbey Wood Train Station is a short walk away and Gloucester Road North has a regular bus service to the City Centre.

Tenure / Property Information

Investment Analysis

Nearby completed sales on Gloucester Road include £570,000 at 587, £595,000 at 581 and £695,000 at 601. These are terraced comparables rather than specifically evidenced HMOs, so they provide only an indicative range. The £3,600 sale at 551 is materially anomalous and is not relied upon. A base GDV of £595,000 is adopted, with £570,000 low and £695,000 high scenarios.

Investment Snapshot

Strategy Recommendation

Prioritise a hold-and-operate BTL/HMO strategy, subject to verifying the HMO licence, consents, tenancy documentation and condition. Do not rely on the higher rent estimate without supporting evidence.

Works Required

Cosmetic updating as described by the auctioneer. Any necessary consents should be verified, but no specific works scope or refurbishment budget is supplied.

Rental & Market Context

Sold Comparables

The following completed sales were identified within approximately 5 miles:

Potential BRRR Position

The property is already occupied as a licensed 7-bedroom HMO, providing established tenancy income. At the base GDV, 75% refinance is estimated at £446,250. A reliable BRRR cash-left-in calculation cannot be completed because no refurbishment allowance, finance costs, valuation costs or full acquisition-cost schedule is supplied.

Buy-to-Let Analysis

The seven existing rents total £4,540 pcm or £54,480 pa, producing approximately 10.38% gross yield against the £525,000 guide before the £1,800 buyer premium and other unquantified costs. The auctioneer estimates £5,250 pcm or £63,000 pa, which would imply approximately 12.00% on the guide. The higher figure is an estimate conditional on cosmetic updating and necessary consents, and no sufficiently specific external rental comparables were identified.

Flip Analysis

A resale assessment can use the £570,000–£695,000 nearby completed-sale range, with £595,000 as the base GDV. However, the comparables are not specifically evidenced as HMOs and no refurbishment budget, selling costs or complete project-cost schedule is supplied, so flip profit cannot be calculated reliably.

Investor Risks & Due Diligence

• The property is sold subject to seven existing tenancies, so vacant possession and immediate rent restructuring are not assumed.

• The £5,250 pcm rent figure is an auctioneer estimate rather than achieved market evidence and is conditional on cosmetic updating and necessary consents.

• No quantified refurbishment scope or budget is supplied, preventing reliable total-cost and maximum-bid calculations.

• The completed sales are nearby terraced properties but are not specifically evidenced as comparable 7-bedroom HMOs.

• The £1,800 buyer premium is known, but other acquisition, finance and operating costs are not supplied.

• The £6,800 security deposit is required for auction registration, with the balance due within 24 hours if successful.

Recommendation

Prioritise a hold-and-operate BTL/HMO strategy, subject to verifying the HMO licence, consents, tenancy documentation and condition. Do not rely on the higher rent estimate without supporting evidence.

Strategy Rating

Analysis Confidence

Existing tenancy rents, tenure, occupancy, accommodation and several nearby completed sales are supplied. Confidence is reduced by the absence of external rental comparables, a quantified works budget, full acquisition costs and specific HMO licensing or consent evidence.