HMO Sovereign

Property Overview

Salty Property Group secured this ready-made HMO, fully let to long-term HS2 contractors and engineers, following a deal collapse - allowing us to purchase at an attractive 11.7% gross yield.

The property is located in a prime Article 4 area and is already fully compliant, including an EPC rating of C, ensuring alignment with the upcoming 2025 MEES regulations.

What particularly attracted SPG to this asset was:

Each bedroom is en-suite and exceeds 12m², meeting Salty Property Group’s quality benchmark. This specification attracts professional tenants, supports higher rental values, and reduces void risk.
A double garage is attached, offering serious value-add potential through conversion to additional living space or rental units (subject to planning).

This acquisition combines immediate cashflow with long-term upside from future development potential.

Location
Coventry

Year
2025

Purchase Price
£365,000 (bricks & mortar)

Refurbishment
Turnkey

Gross Development Value (GDV)
Value add potential + yield based valuation

Why This is a Strong Long-Term Investment – Thorough Due Diligence Conducted Pre-Purchase

1. Strong Rental Demand

Coventry is home to two major universities with over 50,000 students combined, generating consistent HMO demand.
Earlsdon is particularly popular with postgraduates and young professionals due to its close proximity to:

City Centre & Train Station
Coventry University & University of Warwick
Major employers such as Jaguar Land Rover, Severn Trent, and the NHS.

2. Attractive Yields in a Prime Area

Earlsdon offers high rental yields compared to other parts of Coventry.
HMO room rates remain strong due to limited supply, especially since the area is covered by Article 4, meaning all new HMOs require planning permission.
This restricts new competition, protecting rental values and demand for existing licensed HMOs.
Potential for capital appreciation as high demand continues.

3. Excellent Connectivity

Coventry Station: Direct trains to London Euston in under an hour.
A45 & A46: Quick access to Birmingham, Leamington Spa, and major motorways.
Birmingham Airport: 20 minutes by car.

4. Regeneration & Growth

City Centre South regeneration (£450m project) is revitalising Coventry’s retail and leisure sector.
Continued investment in business hubs and student infrastructure keeps demand high for quality shared accommodation in Earlsdon.

Conclusion

The Earlsdon area of Coventry combines strong rental demand, high yields, Article 4 protection, excellent transport links, and long-term growth potential, making it one of Coventry’s most resilient and attractive HMO investment areas.