Off-Market Housing Association Investment Opportunity

A hands-off, income-producing 2-bedroom freehold terraced house offered at £66,500, currently tenanted and producing £561 pcm / £6,732 per annum.

The property is let on a Housing Association with a 5-year lease, designed to provide stable, predictable income while reducing the usual risks of private lettings such as void periods, tenant turnover and rent arrears.

The property is 657 sq ft with an EPC rating of C, with potential to improve to B.

The Opportunity

This is an income-led investment with rent already in place from day one. The property is offered with a 5% discount, with a stated valuation of £70,000 against a purchase price of £66,500.

Comparable local evidence supports the pricing. Smaller terraced homes in the immediate market sit around the £70,000 level, while larger or better-finished nearby terraces have achieved approximately £80,000–£98,000. This supports both the purchase price and the resale position.

Growth of the Area

The area is an affordable North East rental market where demand is supported by strong yields, low entry prices and continued need for affordable and supported housing.

The low purchase price creates a strong yield position, while comparable sales show potential resale upside where properties are improved, larger or sold into the owner-occupier market.

Return Potential

Current rent is £561 pcm, equal to £6,732 per annum.

At the purchase price of £66,500, this gives:

Gross yield: 10.1%
Net yield: 10.1%

Based on the attached figures, after finance costs the projected cashflow is approximately:

Monthly net cashflow: £313
Annual net cashflow: £3,758

Rent Guarantee & Security

The key attraction is the 5-year Housing Association lease structure, offering greater income security than a standard private tenancy.

Investor benefits include:

Guaranteed rent
No council tax or utility bills to pay
Reduced vacancy risk
Reduced tenant management
No standard letting setup or middle-management fees
Income supported by institutional / government-linked demand
All Money Out Position

Based on the figures provided:

Total invested: £76,025
Refinance value: £70,000
75% refinance: £52,500
Money left in the deal: £23,525

This is not a full all-money-out deal on the current numbers, but the refinance returns a significant portion of capital while retaining a positive cashflowing asset.

Yield & Resale

This is primarily a cashflow and security investment, delivering a 10.1% net yield with guaranteed rent in place.

The resale position is supported by the stated £70,000 valuation and nearby comparable evidence, with larger or more highly finished terraces in the local market achieving up to around £98,000.

Investor Summary

Purchase price: £66,500
Valuation: £70,000
Discount: 5%
Rent: £561 pcm / £6,732 pa
Net yield: 10.1%
Strategy: Housing Association
Lease: 5 years
Tenure: Freehold
Size: 657 sq ft
EPC: C, potential B

A strong hands-off investment for an investor seeking secure income, reduced management, attractive yield and a realistic resale position supported by local comparables.

Sourced reference: 652959525981844