Description
Key Takeaway: This SE18 HMO investment property offers a licensed five-bed HMO just 5 minutes from Woolwich Arsenal station, generating £62,220 pa for a 9.57% gross yield (6.44% net).[caption id="attachment_15798" align="alignleft" width="300"]
Property for sale A two-story brick terraced SE18 HMO investment property with white trim is for sale. The front yard sign highlights a rental income of £62,220 per year and a 9.57% gross yield in this sought-after postcode. Presented by Palace Auctions[/caption]
Description
Palace Auctions present this SE18 HMO investment property, an exceptional licensed five-bedroom house of multiple occupation in Woolwich Arsenal. Priced at £650,000 plus a 2% buyer’s fee, this asset delivers £62,220 pa rental income (£5,185 pcm) and a 9.57% gross yield (6.44% net after operating costs). The property is licensed pre-Article 4 direction, securing its HMO status against future planning changes. Upon entry, tenants enjoy a large open-plan kitchen-diner ideal for communal living. Five double bedrooms—each with double glazing—are served by two modern bathrooms. Additionally, a generous south-facing garden offers valuable outdoor amenity space. High-speed broadband and individual tenancy agreements maximise appeal to professionals and students. Moreover, investors benefit from strong cash flow from day one and robust long-term capital growth driven by Woolwich’s Crossrail connectivity and ongoing regeneration. With ROI on deposit ranging from 9.26% (25% deposit) to 7.85% (40% deposit), this SE18 HMO investment property suits both cash buyers and leveraged investors. For due diligence, download the Legal Pack and the EPC report. To arrange a viewing, please book via our Auction Calendar. You can also explore our HMO Investment Guide for sector insights.Income & Yield Analysis
| Metric | Value |
|---|---|
| Asking Price | £650,000 |
| Buyer’s Fee (2%) | £13,000 |
| Total Investment | £663,000 |
| Annual Rental Income | £62,220 |
| Monthly Rental Income | £5,185 |
| Gross Rental Yield | 9.57% |
| Estimated Annual Costs | £20,366 |
| Net Annual Income | £41,854 |
| Net Rental Yield | 6.44% |
| ----------- | ---------------- |
| 25% | £162,500 |
| 30% | £195,000 |
| 35% | £227,500 |
| 40% | £260,000 |
[caption id="attachment_15795" align="aligncenter" width="800"]
Property for sale Two bar graphs: Left compares rental yields in percentages, highlighting a 9.6% gross yield for an SE18 HMO investment; right shows ROI decreasing as deposit increases for a £650,000 high-yield property. Presented by Palace Auctions[/caption]
[caption id="attachment_15796" align="aligncenter" width="800"]
Property for sale A horizontal bar chart titled "Annual Operating Costs Breakdown" highlights costs for an SE18 HMO investment—Void Periods (£3,111, 5%), Licensing (£500, 0.8%), Insurance (£1,200, 1%), Maintenance (£9,333, 15%), and Management (£6,222, 10%). Presented by Palace Auctions[/caption]
Property for sale Two bar graphs: Left compares rental yields in percentages, highlighting a 9.6% gross yield for an SE18 HMO investment; right shows ROI decreasing as deposit increases for a £650,000 high-yield property. Presented by Palace Auctions[/caption]
[caption id="attachment_15796" align="aligncenter" width="800"]
Property for sale A horizontal bar chart titled "Annual Operating Costs Breakdown" highlights costs for an SE18 HMO investment—Void Periods (£3,111, 5%), Licensing (£500, 0.8%), Insurance (£1,200, 1%), Maintenance (£9,333, 15%), and Management (£6,222, 10%). Presented by Palace Auctions[/caption]
Figure 2: Annual Operating Costs Breakdown – management, maintenance, insurance, licensing & voids.
Location & Transport
- Woolwich Arsenal Station (Elizabeth Line & DLR): TfL Details
- Bus routes 486, N1 to Canary Wharf & central London
- Crossrail connectivity: 13 mins to Canary Wharf, 23 mins to Paddington
- Nearby amenities: Royal Arsenal development, Phaser Calder parks, local cafés
