Massive 32-bed HMO in Northampton goes up for sale at £2.25million – here's how much it will make a year for its new landlord

The property, located at Royal Terrace on Barrack Road, is listed by Edward Knights for £2,240,000.

Edward Knight Estate Agents describe the sale as a ‘rare opportunity’ to acquire three large HMO properties, now used as private student accommodation.

The buildings contain 32 rooms, 28 of which feature en-suite facilities. There are also five communal lounges and five kitchens.

Outside, the property includes front gardens and rear parking, with four parking spaces, two double garages, and a courtyard garden.

According to estate agents, the property has a long history. Initially known as The Regent Hotel in the 1950s, the hotel expanded in 1987 when 8 Royal Terrace was added and rebranded as The Aarondale Regent Hotel. The current owners took over the property in 1997, purchasing it in 2006. In 2011, they converted it into student accommodation by obtaining HMO licenses for all units.

For the academic year 2024/25, the property is expected to generate £224,190 in rental income, offering an estimated return of around 10%.

There is also potential for increased income through further development, subject to planning permission, according to estate agents.

The property is now being sold as the owners plan to retire. Estate agents suggest the sale offers an opportunity to acquire a profitable student accommodation business with further growth potential.

A 10% deposit of £224,000 is required, with mortgage repayments estimated at £10,000 per month over 30 years.