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Deal WizardHMO · Property Analysis
6 bedroom detached house for sale in School Lane, Little Melton, NR9
Address: School Lane, Little MeltonPrice: £500,0006 Bedroom(s)2 Bathroom(s)Analysis Date: Apr 23, 2026
ROCE: 30.2 %Tenure Type: FREEHOLDProperty Type: DetachedCouncil Tax Band: ESize: 0 sq ft / 0 m²Risk: MediumProject Time: 12 weeks

HMO Investment Analysis: Little Melton, NR9

Analysis for a 6-bedroom detached opportunity. Project involves conversion to a compliant, high-spec HMO.

Executive Summary

This detached property in Little Melton presents a compelling HMO conversion opportunity. With 6 existing bedrooms and substantial communal space, it is prime for conversion. Located near UEA and Norwich Research Park, rental demand is high. The project requires a medium-standard refurbishment to bring it up to licensing compliance and maximize rental yields.

Acquisition Overview

Purchase Price
£500,000
Down Payment
£40,000
Buyer Status
First-time
Interest Rate
1.00%

Note: A 1% interest rate assumption is highly favorable; maintain a conservative contingency fund in planning.

Projected Rental Income (Post-Refurb)

Est. Room Rent (Avg)
£600
Gross Monthly Rent
£3,600
Gross Annual Rent
£43,200

Market rental analysis suggests strong demand for UEA-proximate professional lets. Target audience: Professionals/Post-grads.

Projected Cashflow & Returns

ROCE30.2%
Gross Yield8.6%
Net Yield5.1%
Monthly Cash Flow£2,136.7
Annual Cash Flow£25,640.0
Investment Feasibility: Highly viable project. Excellent gross yield (8.6%) given the current market.

Licensing & Compliance

Current layout supports 6 occupants. Refurb must focus on fire safety (FD30s, interlinked smoke detection) and kitchen/amenity ratios.

Property & Layout Analysis

B1 (Ground)
~12m² - Pass
B2 (First)
~13.8m² - Pass
B3 (First)
~10.3m² - Pass
B4 (First)
~9.2m² - Pass
B5 (Second)
~14.9m² - Pass
B6 (Second)
~10.8m² - Pass

Capacity & Layout Options:

Option 1
6 Bed HMO
Pass

Max Compliant Occupant Count: 6 Adults.

Refurbishment Plan

Scope: High-Standard Professional HMO

Fire Doors & Safety Compliance£6,500
Kitchen Upgrade (HMO spec)£8,000
En-suite Installation (x2)£7,000
General Flooring/Paint£5,000
Electrical / Data Cabling£4,000
Furnishing (6 rooms)£9,000
Garden/Garage Tidy£3,000
Total Refurbishment Cost£42,500

Refurbishment Timeline:

Weeks: 12 || Months: 3

Phase 1: Compliance/Demo (3 weeks)
Phase 2: First Fix/Extensions (4 weeks)
Phase 3: Finishing/Decor (3 weeks)
Phase 4: Furnishing/Inspection (2 weeks)

Negotiation Points

Property Condition & EPC
EPC current rating 62 (D). Potential for significant negotiation based on energy efficiency upgrade costs.
Outbuilding/Garage Regulations
Agents note states missing build regs for outbuildings—use this to drop price by £10-15k.
Time on Market / Motivation
Property appears to be a "draft detail" listing; potential for early-bird negotiation. Probability: 75.

Investment Case Summary

Short Recommendation

Buy at £500k, convert to 6-bed HMO. Strong, reliable cashflow. Negotiate hard on the "missing building regs" point.

Detailed Recommendation

The School Lane property offers a robust HMO opportunity. With 6 existing bedrooms, the layout is naturally suited to the target demographic (UEA/Hospital staff). The investment should focus on elevating the internal finish to a "High Standard" (as defined by local comparables) to secure the upper end of the £600-£700pcm room rate. The 1% interest rate assumed in your parameters yields an excellent cashflow, but be aware of higher market rates. Risk is mitigated by the structural soundness of the property type (detached) and the presence of significant communal space. Secure the property, ensure fire compliance, and target high-quality professionals.