Carlisle Social Housing Investment - Axxco Case Study

Project Summary

Location: Carlisle
Finished Property Type: 5-Bedroom HMO (House in Multiple Occupation)
Purchase Price: £70,000
Renovation & Furnishing: £67,800
Total Investment: £137,800
Yearly Rental Income: £17,680
Net Yield: 12.83%

The Challenge

Our client sought a secure, high-yield property investment within the social housing sector. The goal was to acquire a property that could be converted into a House in Multiple Occupation (HMO) and leased to a reputable, government-backed social housing provider, ensuring long-term rental income and contributing positively to the community.

The Solution

Our experienced team sourced a well-located property in Carlisle at an attractive purchase price of £70,000. The property was carefully selected for its suitability for conversion into a 5-bedroom HMO, attractive price point and most importantly within a location that offered strong capital growth potential whilst still meeting the housing providers stringent criteria.

Property Conversion and Refurbishment

The property underwent a comprehensive renovation managed by Axxco's in-house build team. The refurbishment process was designed to meet the specific requirements of our partner social housing provider, with a focus on creating a safe, durable, and energy-efficient living space.

Renovation and Furnishing Costs:

• £67,800 was invested in a full-scale renovation and furnishing, ensuring that the property was ready for immediate occupancy.

The renovation included a complete electrical rework, a brand new roof, asbestos removal, modernising the interior, upgrading essential utilities, and furnishing each room to a high standard. The end result was a property that not only met regulatory standards but also provided a comfortable and welcoming environment for future tenants.

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Collaboration with a Social Housing Provider

Upon completion of the renovation, the property was handed over directly to a trusted social housing provider. This partnership was integral to the project's success, as it ensured full occupancy and a reliable income stream for our client.

Financial Outcome

Total Investment:

• Purchase Price: £70,000
• Renovation & Furnishing: £67,800
• Total: £137,800

Yearly Rental Income:
The property now generates a consistent rental income of £17,680 per annum, secured through a long-term agreement with the social housing provider.

Net Yield:
The project delivered a strong net yield of 12.83%.

The Result

This project is an excellent example of how Axxco's holistic approach to property investment can deliver significant financial returns while contributing positively to the community. By converting a standard residential property into a high-quality HMO tailored for social housing, Axxco was able to secure a lucrative and socially impactful investment for our client,

Most importantly, the investor is also left with a valuable asset in a good location, should they ever wish to change purpose and strategy giving the investment significant security.

If you're interested in similar investment opportunities, Axxco offers a range of services designed to help you achieve your financial objectives while making a positive difference in the housing sector.

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