Freehold four-bed terraced HMO with immediate rental income
A compact, freehold four-bedroom terraced HMO on Zetland Road offering immediate income and high headline yields. Refurbished before letting, the property is already producing rental returns with three rooms let and the fourth currently marketed.
The investment case is straightforward: a gross income of £20,520pa and a calculated gross yield of 24.14% (net yield 13.16%) after stated outgoings. There is no local HMO licence requirement for a four-bed house here, reducing near-term compliance steps and costs.
Buyers should weigh the earnings against clear local and property-level risks. The house has one shared bathroom for four tenants and a small overall footprint and garden, which can limit tenant mix and long-term capital growth. The wider area is classified as very deprived with high crime levels; this supports strong rental demand but increases management and void risks. Ongoing outgoings (utilities, council tax, cleaning) materially reduce net income, so factor these into return projections.
Overall, this is a practical, low-maintenance cashflow purchase for investors seeking immediate rental yield in Stockton-on-Tees. It suits investors comfortable with active management in higher-deprivation urban markets and those prioritising short-term income over rapid capital appreciation.
