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Deal WizardHMO · Property Analysis
Property analysis
Address: Coney Street, York City Centre, YorkPrice: £4,950,00010 Bedroom(s)10 Bathroom(s)Analysis Date: Oct 18, 2025
Tenure Type: FREEHOLDProperty Type: HouseSize: 32101 sq ft / 2982.3 m²Risk: Medium-HighProject Time: 78 weeks

HMO Investment Analysis

**Important Note:** This property (48 Coney Street, York) is a substantial commercial building with planning permission for a 64-room aparthotel. The analysis below has been adapted to reflect this commercial development opportunity, as standard HMO evaluation criteria are not applicable. The provided rental comparables are for residential HMO rooms and are therefore not relevant for this analysis.

Executive Summary

This analysis evaluates 48 Coney Street, York, a significant freehold commercial property located in a prime city centre position. The property benefits from extant planning permission for a mixed-use development, including the conversion of retail units to commercial/restaurant space and the creation of a 64-room aparthotel across the upper floors and a new roof extension. The Grade II listed façade offers architectural merit and historic value. While the initial valuation is high at £4,950,000, the planning permission for a substantial aparthotel conversion represents a significant development opportunity. The property's location in a high-traffic pedestrian zone, proximity to transport links, and the potential for a high-demand aparthotel offering suggest strong potential returns, contingent on successful development and operation. The scale of this project moves beyond traditional HMO investment into a larger-scale commercial development.

Acquisition Overview

Purchase Price
£4,950,000
Tenure
Freehold
Total Floor Area
32,101 sq ft
Planned Use
64-Room Aparthotel
Location
Prime City Centre
Planning Status
Aparthotel Conversion Granted

The property is a large commercial building in a prime city centre location. The acquisition price reflects its scale and central position. The primary value is unlocked through the approved redevelopment into a 64-room aparthotel.

Projected Rental Income (Post-Refurb)

Estimated Annual Income (Aparthotel)
N/A

Requires detailed market research for aparthotel rates.

Estimated Monthly Income (Aparthotel)
N/A

Requires detailed market research for aparthotel rates.

Average Room Rate (Est.)
N/A

Estimated based on market rates for similar aparthotels.

Precise rental income projections for a 64-room aparthotel require specific market analysis of comparable aparthotel rates in York, occupancy levels, and operational costs, which are beyond the scope of the provided HMO data. The provided residential HMO rental data is not applicable.

Projected Cashflow & Returns

Monthly Cash Flow
N/A

Calculation impossible without income/expenditure data.

Annual Cash Flow
N/A

Calculation impossible without income/expenditure data.

Gross Yield
N/A

Calculation impossible without projected income.

Net Yield
N/A

Calculation impossible without total costs & income.

ROI
N/A

Calculation impossible without total investment & profit.

Due to the commercial nature of the property and the lack of detailed financial data for the proposed aparthotel conversion (e.g., full development costs, operational expenses, projected revenue), traditional HMO KPIs such as cash flow, gross yield, net yield, and ROI cannot be calculated. A comprehensive financial model for the aparthotel development is required.

Mortgage & Financing

Financing details are not provided. Securing suitable commercial development finance or a bridging loan for a project of this scale would be a critical step, requiring a robust business plan for the aparthotel.

Refinance Potential

Post-Refurb Valuation (ARV)N/ADependent on final aparthotel yield and market conditions.
Refinance Uplift %N/ACannot be determined without refinance valuation and loan details.
Estimated Equity Pulled OutN/ADependent on refinance LTV and valuation.
Capital Left in DealN/ADependent on total investment and refinance amount.

The property's value post-refurbishment into a 64-room aparthotel is expected to be significantly higher than the current purchase price, driven by the rental income potential. This uplift could provide substantial equity for refinancing, though exact figures require detailed development costings and aparthotel revenue projections.

Licensing & Compliance

As a commercial property with planning permission for an aparthotel, standard UK HMO licensing (Mandatory, Additional, Selective) does not apply. Compliance would fall under different regulatory frameworks, including hotel/aparthotel licensing, fire safety regulations for aparthotels, and building control standards for the conversion. Specific local requirements for aparthotels in York would need to be investigated.

Amenity Standards Check (Estimated for 64-Room Aparthotel):

Property & Layout Analysis

Ground Floor (Retail/Commercial)
Area:7,675.70 sq ft Ceiling Height:N/A Reconfig Potential: Significant for retail/commercial use; requires structural fit-out for aparthotel rooms.
Function: Original Retail/Commercial
Open Plan
Basement
Area:7,666.80 sq ft Ceiling Height:N/A Reconfig Potential: Commercial use (restaurant/shop) as per planning, or potential for ancillary aparthotel services.
Function: Commercial / Storage
Open Plan
First Floor
Area:8,021.60 sq ft Ceiling Height:N/A Reconfig Potential: Designed for aparthotel rooms as per planning.
Function: Planned Aparthotel Rooms
Mixed Layout
Second Floor
Area:8,157.40 sq ft Ceiling Height:N/A Reconfig Potential: Designed for aparthotel rooms as per planning.
Function: Planned Aparthotel Rooms
Mixed Layout
Mezzanine
Area:579.3 sq ft Ceiling Height:N/A Reconfig Potential: Potential for additional aparthotel rooms or ancillary services.
Function: Ancillary / Potential Rooms
Varied

National Minimums Check:

Standard national minimum room sizes for HMOs (e.g., 6.51m² for a single adult) are not applicable to the planned aparthotel conversion, which will have its own specific space and amenity standards defined by the planning approval and building regulations.

Capacity & Layout Options:

Option 1 (Planned)
64-Room Aparthotel
Compliant Planning

Maximises commercial potential of the prime location.

Option 2 (Alternative)
Mixed-Use Commercial/Residential
Requires New Planning

Could include retail, offices, or a smaller number of residential units.

Max Compliant Occupant Count: 64 aparthotel rooms (as per planning permission). Recommended Layout: Proceed with the approved 64-room aparthotel conversion to leverage the prime city centre location and market demand.

Layout Reconfiguration Potential

Certainty of Adding Another Bedroom50%The planning permission is for 64 rooms. Adding more may require a substantial planning amendment and might be constrained by structural elements and fire regulations, but the building footprint is large.

The current planning permission already designates the property for a significant aparthotel development. While the building is large, any further increase in room count beyond the approved 64 would necessitate a complex and costly planning application process, potentially facing challenges with heritage building constraints and density limits.

Rough Cost: £100,000 - £500,000+ (for planning application, architectural, and potentially structural feasibility studies)

Worthiness: Low. The approved 64-room aparthotel is already a substantial project. Pursuing additional rooms would introduce significant risk and cost without a clear guarantee of success. Focus should be on executing the current plan effectively.

Value Added by Additional Bedroom(s)N/AHighly speculative without detailed planning and market analysis for additional units.
Risk of Change (1-100)70High risk due to the need for planning amendments, potential heritage issues, and the complexity of altering an approved scheme.

Refurbishment Plan

Scope & Standard:

Standard: A high-quality, modern fit-out suitable for a city centre aparthotel, catering to both business and leisure travellers.

The refurbishment will involve a complete transformation of the existing retail and office spaces into individual, self-contained aparthotel units. This will include the creation of walls, installation of en-suite bathrooms, basic kitchenettes, high-quality finishes, M&E services (plumbing, electrics, HVAC), fire safety systems, and communal area fit-out.

Refurb Breakdown:

Demolition & Strip-out£150,000 - £250,000Removal of existing retail fit-outs.
Structural Works & Partitioning£1,500,000 - £2,500,000Creating 64 individual room layouts.
En-suite Bathrooms (x64)£1,200,000 - £1,900,000Approx. £18-30k per bathroom.
Kitchenettes (x64)£300,000 - £500,000Basic units, worktops, sinks.
M&E Services (Electrical, Plumbing, HVAC)£1,000,000 - £1,500,000Full upgrade required for aparthotel standards.
Fire Safety Systems£200,000 - £300,000Essential for aparthotel compliance.
Finishes & Decor£800,000 - £1,200,000Flooring, painting, lighting, fixtures.
Communal Areas Fit-out£300,000 - £500,000Lobby, lounges, reception, corridors.
Landscaping/External Works£50,000 - £100,000If applicable to approved plans.
Contingency (15%)£750,000 - £1,100,000For unforeseen issues in a heritage building.
Total Estimated Refurbishment Cost £6,250,000 - £9,850,000

Refurbishment Shopping List:

Kitchenettes:

Bathrooms:

Fire Safety & General:

Other:

Total cost: £ (Estimated) - See Refurb Breakdown for overall project cost.

Refurbishment Timeline:

Weeks: 78 - 104 || Months: 18 - 24

Phase 1: Design, Planning Approval & Tendering || 12-16 weeks
Phase 2: Strip-out & Enabling Works || 8-12 weeks
Phase 3: Structural, M&E Rough-in, Internal Walls || 30-40 weeks
Phase 4: Bathrooms, Kitchenettes, Finishes, Fire Safety || 20-30 weeks
Phase 5: Furnishing, snagging & Commissioning || 4-6 weeks

Risk Level

Risk Level: Medium-High

Risks & Assumptions

Negotiation Points

Condition & Refurbishment NeedsSignificantThe property requires a full commercial fit-out for the approved aparthotel scheme. The cost and complexity of this renovation are substantial.
Scale of DevelopmentVery LargeA 64-room aparthotel is a major project requiring significant capital, expertise, and time, increasing inherent risks.
Heritage Building ConstraintsPotentialWorking with a Grade II listed facade will add complexity, cost, and potential delays to the development.
EPC Rating BGoodThis is positive, indicating some level of energy efficiency, but new build standards might be higher.
Time on Market / Seller MotivationUnknownThe property has been on the market for some time. The mention of interest from hotel operators suggests the seller may prefer a developer to realise the planning permission's value rather than undertaking it themselves, potentially indicating a willingness to negotiate for a quick sale to a capable party.

Market Value & Demand Analysis

The property's location in York city centre, on prominent streets like Coney Street and Market Street, is a significant asset. This area benefits from high footfall and visibility, attracting both tourists and local shoppers. The recent planning permission for a 64-room aparthotel addresses a recognised need for quality accommodation in York, a city with a strong tourism sector driven by its historical attractions and universities.

The aparthotel model combines the flexibility of apartment living with the services of a hotel, appealing to a broad range of travellers seeking longer stays or more amenities than a traditional hotel room. The demand for such accommodation is typically strong in well-established tourist destinations like York. The successful development of this property could command premium rates, especially given its central location and the high-specification finish indicated by the planned conversion.

The property's value post-refurbishment will be directly tied to the success of the aparthotel operation and its achievable revenue per room. The investment case hinges on the developer's ability to execute the conversion efficiently and manage the aparthotel effectively to meet market expectations and achieve strong occupancy rates.

Investment Case Summary

Short Recommendation

This is a large-scale commercial development opportunity with approved planning for a 64-room aparthotel. It requires substantial capital and expertise but offers significant upside in a prime York location. Viable for experienced developers or investors targeting the hospitality sector.

Detailed Recommendation

The acquisition of 48 Coney Street presents a compelling, albeit complex, investment proposition. The £4,950,000 asking price for this prime city centre location, coupled with extant planning permission for a 64-room aparthotel, signals a strategic development opportunity rather than a standard buy-to-let or HMO investment. The scale of the redevelopment, estimated at £6.25M - £9.85M, is significant and necessitates robust project management, substantial funding, and a deep understanding of the hospitality market.

The Grade II listed facade, while adding historical charm, also introduces development complexities and potential cost escalations. However, the planning permission for a significant aparthotel operation directly addresses the demand for quality accommodation in York, a city with high tourist numbers and significant business activity. The proposed scale of 64 units suggests a comprehensive aparthotel operation designed to capture substantial rental income, potentially yielding attractive returns upon successful completion.

Key risks include the sheer volume of capital required, construction challenges associated with heritage buildings, and the operational success of the aparthotel. Thorough due diligence on the planning permission details, structural surveys, detailed costings, and independent market analysis for aparthotel revenues are paramount. If these factors align positively, this property offers the potential for a highly profitable, large-scale commercial investment, transforming a former retail space into a valuable hospitality asset.