A tenanted block of 4no. 3 bedroom apartments* and a 6 bedroom house set back from Osborne Road in Jesmond, ideal for Newcastle University students. The block is fully pre-let for the 2021-22 academic year providing an annual income of £98,624. Also included is a detached garage to the rear that has consent for conversion into a 1 bed apartment.

Newcastle Student Market - With in excess of 42,000 full time students across the two world-renowned universities, the student rental market in Newcastle remains as buoyant as ever and continues to attract new investors, drawn in by the strong and reliable income it generates. After much new development in the city centre, catering mainly for International Students, Newcastles most convenient suburbs continue to enjoy outstanding occupancy rates from domestic students, along with sustained increases in rents year on year.

The NE2 postcode, which incorporates Jesmond, Sandyford and Spital Tongues, dominates the student HMO market, enjoying an enviable reputation for offering the perfect mix of lifestyle and convenience to the universities. Demand is sufficiently strong that many HMOs in the area are let before the Christmas break for tenancies starting the following summer, and command full rent for 52 weeks of the year.

Houses In Multiple Occupancy - Whilst much focus on recent years has been on the rise of Purpose-Built Student Accommodation as an asset class, demand for HMO format has continued to surge. The introduction of the Article 4 Direction by the Citys Council has in effect ring-fenced the supply of HMOs meaning that the competition between tenants wanting to experience Jesmond life has intensified, forcing rents upwards. Despite strict licensing and increasing regulation, investing in HMOs continues to show very strong and predictable returns.

Secure Rental Income - Many HMOs are let to groups of friends on a single Assured Shorthold Tenancy agreement, and as such each tenant is joint and severally liable for the total value of the agreement. Each tenants liability is usually also backed up by a Guarantor typically parents who are homeowners, who are legally obliged to cover the rent if any of the tenants default.

Pre-Booking - Many HMOs in Jesmond are pre-booked before Christmas for tenancies starting in the next academic year. This can be between 6-10 months before the current agreement is due to expire. This certainty of income ensures voids are kept to an absolute minimum, and a such full rental income is generally expected for 364 days of the year.

Situation - The property is in central Jesmond, set back from the edge of Osborne Road, the main access road through Jesmond and home to several popular restaurants, coffee shops, bars and hotels. Jesmonds central retail parade on Acorn Road is just 300m away, as is Little Waitrose Store, with Tescos approximately 400m away.

Jesmond continues to be the top location for many students studying in Newcastle thanks to its enviable reputation for offering the perfect mix of lifestyle, convenience and access to the city centre and its Universities. The HMO market in Jesmond is dominated by well-heeled domestic students looking to make the most of their time living away whilst attending university.

Development Potential - The detached double garage, which attracts a rent of £2,500pa, has planning consent to be develoed into a self contained 1 bedroom apartment. Details are available online via Newcastle's planning portal, reference: 2018/1201/01/DET

Additional Information - Floorplans and Video Tours are available on request.

Compliance And Regulation - All Compliance Certificates relating to Gas, Fire and Electrical safety, as well as Licensing documents and Tenancy documents are held within our Data Room and will be made available to the purchaser at the appropriate time.

Epc Ratings - Apartments 2-4: C
House: D

Agents Note - *The ground floor apartment is currently being used as an office, but can be converted back to a 3 bedroom apartment