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Investment Case: 78 St. Annes Drive

78 St Annes drive is a 5-bedroom detached HMO student property located in Leeds. It is a proven performer property with a track record of producing high yields and income. It was valued at £245,000 in February 2018 and is currently let out and tenanted generating a gross rent of £24,765 pa.

Written by
Shaan Ahmed
published on
Tuesday, July 24, 2018
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Investment Case: 78 St. Annes Drive

78 St Annes drive is a 5-bedroom detached HMO student property located in Leeds. It is a proven performer property with a track record of producing high yields and income. It was valued at £245,000 in February 2018 and is currently let out and tenanted generating a gross rent of £24,765 pa.

Written by
Shaan Ahmed
published on
Tuesday, July 24, 2018

Location

78 St Annes drive is located in LS4 in an area called Headingley. Headingley is one of the major student areas of Leeds largely due to its proximity to three different university campuses: Leeds Beckett Headingley Campus; University of Leeds and Leeds Beckett University. All three campuses fall within a 2 mile radius and due to the good transport links in the area they can be reached within 15 minutes.

One of the most student-friendly parts of Leeds, Headingley has all you could ask for as a student - green spaces, a wide variety of bars and restaurants, left-field arts venues and plenty of shops where you can pick up all your essentials in a matter of minutes.

A map of the surrounding area

Property

78 St Annes Drive is a 5 bedroom detached house spread over three storeys. Its exterior is composed of traditional brickwork and is partially rendered white in parts to improve the overall aesthetic. Internally it has been recently renovated and consists of 5 bedrooms, 3 bathrooms, a separate lounge and a seperate kitchen. All usual services like gas, water, electricity, internet, drainage and central heating are present. All of the windows are UPVC double glazed.

The property is well presented internally with modern kitchen and bathroom fittings. The current occupation arrangement with a vacant ground floor rear bedroom gives the existing tenants shared access to a separate ground floor shower and WC, alongside the 1st floor bathroom WC and separate WC. This arrangement is attractive to prospective tenants, and will continue to assist in securing groups of five tenants. The property will continue to let readily to groups of 5 for a reasonable market rent, although it is also likely to be possible to secure 6 tenants in certain circumstances, possibly at a decreased rate per person.

The property would appeal to the professionals market, alongside students.

78 St Annes Drive

Marketplace

Leeds has 65,000 students and three major internationally regarded universities. The student numbers have increased year on year for the last 5 years, despite student fees going up and the effects of brexit.

Leeds university for example in 2016 had 33,995 students, with 2017/18 seeing the number of applications rise by 10.5% on the same time last year. It is driving standards forward to attract the best applicants from across the globe. Its commitment to this goal is seen through the £520m campus regeneration scheme, and its recent accolade as the Britain's university of the year 2017 will only increase its appeal to students worldwide.

The demand for student housing in Leeds is currently not being met by enough supply, and despite Leeds having purpose built student accommodation blocks both provided by universities and private companies there is still a structural undersupply of student housing.

Property Management

Having a well regarded property management agent on board can provide a smooth investment journey, as they will be very familiar with the common pitfalls that can catch out unaware investors.

The property will be managed on a day to day basis by our sister company Parklane Properties (Leeds) Limited (“Parklane”). Parklane is one of the biggest and oldest student accommodation providers in Leeds. They have been active on the scene since the 1980s.

Parklane have an amazing selection of student properties which draws in prospective tenants every year. All their managed properties are of the highest standard and they have dedicated Property Consultants and Lettings Negotiators available to help students over the course of their tenancy. Parklane Is ‘Fully Endorsed' By The SAFE Agent SchemeSAFE – an acronym for ‘Safe Agent Fully Endorsed’ - is a voluntary kitemark denoting firms that protect landlords and tenants’ money through client money protection schemes. The scheme is an industry initiative aimed at raising standards in the private rented sector. SAFE Agent status reassures landlords and tenants that their money is kept completely separate from the operating funds of the agent, keeping income and deposits safe. In addition to Government support for the scheme, key organizations in the industry including, National Union of Students, Which?, Citizens Advice Bureau, Shelter, Crisis, The Property Ombudsman, Consumer Focus, OFT, GLA and Trading Standards Institute have all allied themselves to the scheme.

One of the most student-friendly parts of Leeds, Headingley has all you could ask for as a student - green spaces, a wide variety of bars and restaurants, left-field arts venues and plenty of shops where you can pick up all your essentials in a matter of minutes.

One of the most student-friendly parts of Leeds, Headingley has all you could ask for as a student - green spaces, a wide variety of bars and restaurants, left-field arts venues and plenty of shops where you can pick up all your essentials in a matter of minutes.

Rental Track Record

  • Let 22/02/18 - from 01/09/2018 to 31/08/2019 @ £79.99pppw (non-Inclusive) = £20,854.53pa  
  • Let 01/06/17 - from 01/09/2017 to 31/08/2018 @ £79.99pppw (non-Inclusive) = £20,854.53pa  
  • Let 21/07/16 - from 01/09/2016 to 31/08/2017 @ £75.99pppw (non-inclusive) = £19811.68pa  

Investment Case

The investment case for 78 St Annes Drive is driven largely by the buoyant student market place in Leeds and the property’s proximity to three different universities. The property is in a lettable part of the Leeds student market and is of a quality that would be attractive to both students and young professionals.

The property will be listed on the UOWN platform, and we will be guaranteeing a net yield of 5.5% for two years, which is paid out every month on the 5th, even whilst the property is funding. Furthermore, this property will be listed as an Easy Exit property, this where exit is guaranteed by UOWN who will be buying back shares when an investors wants to sell them.

Be the first

Have a read of our investor rewards program to see some of the great perks on offer for investing in this property.  

Risk Warning

Please be aware that property prices go up as well as down, so you might not get out what you put in. Our forecasting tools help with the guesswork but they don't always get it right. Remember, UOWN is built and run by real human beings and, like all humans, we can't predict the future.

Our guaranteed net yield and the Easy Exit scheme are underwritten by Parklane Properties (Leeds) Limited which has undertaken to fund any shortfall in rental income, and to buy back shares at the current market price. The guarantee is dependent on the financial performance of Parklane Properties (Leeds) Limited.

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