Description
Secure a high-yield, fully let 6-bedroom ensuite HMO in Derby’s sought-after DE1, offering 11.25% gross yield, robust rental demand, and immediate income — a rare turnkey opportunity for discerning investors. This property exemplifies what makes a Derby HMO Freehold Investment so attractive for those seeking strong returns.Property Overview
Palace Auctions London proudly presents 4, Mundy Close, Derby DE1 3PU — an exceptional terrace freehold HMO investment in the heart of Derby’s thriving city centre rental market. This modern, fully licensed property comprises six spacious double bedrooms, each with a private ensuite, and is currently fully let, generating a strong annual income of £36,000. With a guide price of £320,000, this asset delivers an impressive gross yield of 11.25%, outperforming both the UK average (7–9%) and Derby’s own high-yield benchmark (10–12%). The property’s contemporary layout, professional management, and prime DE1 location ensure minimal voids and sustained rental growth, making it an ideal acquisition for portfolio landlords, yield-focused buyers, and those seeking a hands-off, income-producing asset in one of the Midlands’ most dynamic investment corridors.Key Features
- Six Double Bedrooms: Each with private ensuite, designed for premium tenant appeal
- Freehold Tenure: No ground rent or service charges, offering long-term security
- Fully Let & Income-Producing: £36,000 per annum, zero voids at point of sale
- High Gross Yield: 11.25% (well above UK and Derby averages)
- Net Yield: 9.56% (15% management costs) / 9.00% (20% costs)
- Modern Layout: Spacious communal kitchen and living areas
- Professional HMO Management: Fully compliant with Derby City Council licensing
- Turnkey Investment: No development risk, immediate income stream
- Article 4 Direction Protection: Existing HMO status secures future value
Location Highlights
- Prime DE1 Postcode: Walking distance to Derby city centre, University of Derby (Markeaton Street campus), and Derby College
- Transport Links: Close to Derby Railway Station (direct trains to London, Birmingham, Nottingham, Sheffield), A38, and M1 for regional and national connectivity
- Regeneration Zone: Situated near the Becketwell regeneration project and within the East Midlands Investment Zone, underpinning future capital growth
- Healthcare & Education: Easy access to Royal Derby Hospital, London Road Community Hospital, and top local schools
- Leisure & Green Spaces: Moments from Mundy Pleasure Ground, Markeaton Park, Derby Theatre, and the Cathedral Quarter
- Vibrant Community: Surrounded by shops, supermarkets, restaurants, and city centre amenities
Amenities
- Ensuite Bedrooms: Each tenant enjoys privacy and comfort
- High-Speed Broadband: Essential for modern living and remote work
- Secure Entry & Fire Safety: Compliant with HMO regulations
- On-Street Parking: Ample parking options for residents
- Proximity to Parks: Mundy Pleasure Ground and Markeaton Park nearby
- Comprehensive Bus Network: Easy access to city-wide destinations
Pricing and availably
| Metric | Value |
| Guide Price | £320,000 |
| Annual Gross Income (Fully Let) | £36,000 |
| Gross Yield | 11.25% |
| Net Yield (15% Costs) | 9.56% |
| Net Yield (20% Costs) | 9.00% |
| Income Per Room (Per Month) | £500 |
| Tenure | Freehold |
| HMO Licence | Derby City Council (up to 5 years) |
| Annual Rental Growth (Derby, 2025) | +5.6% |
| House Price Growth Forecast (2025) | +4% |
Property for sale Bar chart compares gross and net yields for 4 Mundy Close, Derby—a freehold HMO with en suite beds. Gross yield stands at 11.25%, net yields at 9.56% (15% costs) and 9.00% (20% costs), versus UK and Derby HMO benchmarks. Presented by Palace Auctions[/caption]
Figure: 4 Mundy Close gross yield vs Derby and UK HMO benchmarks
Why Buy With Palace Auctions
- Transparent Auction Process: Legal packs and due diligence provided upfront
- Expert HMO Advisory: In-house specialists with deep Derby and Midlands market knowledge
- Global Reach, Local Expertise: London and Dubai offices serving UK and international investors
- Full Compliance Support: Guidance on HMO licensing, Article 4 planning, and regulatory obligations (GOV.UK HMO Licensing)
- Proven Track Record: Achieving best-in-class prices for income-producing HMO assets (Allsop Auctions, Savills Derby Market)
- Dedicated Aftercare: Post-auction support, conveyancing introductions, and ongoing market appraisals
- RICS-Accredited Professionals: Ensuring robust compliance and investor confidence (RICS HMO Guidance)
Community & Lifestyle Benefits
- Vibrant Urban Living: Enjoy Derby’s city centre lifestyle, with shopping, dining, and entertainment on your doorstep
- Excellent Connectivity: Ideal for professionals, students, and commuters
- Future Growth: Benefit from Derby’s ongoing regeneration and forecasted property and rental growth
- Peace of Mind: Fully licensed, professionally managed, and compliant with all local regulations.
