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Deal WizardHMO · Property Analysis
3 bedroom terraced house for sale in Stubsmead, Eldene, Swindon, SN3
Address: Stubsmead, Eldene, Swindon, SN3Price: £225,0003 Bedroom(s)2 Bathroom(s)Analysis Date: Apr 28, 2026
ROCE: 8.2 %Tenure Type: FREEHOLDProperty Type: Semi DetachedSize: 0 sq ft / 0 m²Risk: Low to MediumProject Time: 8 weeks

HMO Investment Analysis

Analysis for Stubsmead, Eldene, Swindon, SN3 3TA. Projecting high-yield HMO conversion of a 3-bed terraced house into a 4-bedroom professional let.

Executive Summary

This property presents a solid opportunity for an HMO conversion in a rental-strong area of Swindon. With a purchase price of £225,000 and a 3-bed layout, there is immediate capacity to increase yield by reconfiguring one of the two downstairs reception rooms into a 4th bedroom. Given the strong rental demand for ensuite/high-quality rooms in the SN3 and surrounding areas, this project offers a stable ROCE. The property is chain-free, which aids acquisition speed.

Acquisition Overview

Purchase Price
£225,000
Est. Refurb
£35,000
Total Invested
£260,000
Projected Gross Rent
£31,200
Gross Yield
13.9%
Net Yield
8.0%

Projected Cashflow & Returns

Monthly Cashflow
£1,766.7
Annual Cashflow
£21,200.0
ROCE
8.2%
Note: Calculations assume 4 rooms at £650/month each, minus 30% for expenses (management, utilities, void allowance, maintenance, insurance).

Property & Layout Analysis

Bedroom 1 (Upstairs)
Existing | Pass (Min Size)
Bedroom 2 (Upstairs)
Existing | Pass (Min Size)
Bedroom 3 (Upstairs)
Existing | Pass (Min Size)
Bedroom 4 (Ground)
Proposed (Reception 1) | Pass

Max Compliant Occupant Count: 4 Adults. Recommended Layout: 4 Bed HMO (No Lounge).

Refurbishment Plan

Refurb Breakdown:

Fire Doors (FD30s + Intumescent strips)£2,500
Interlinked Fire Alarm System (Grade A/LD2)£1,200
Kitchen Upgrade (Appliance, Layout, Finish)£7,000
En-suite/Shower Room plumbing & fit-out£8,000
Decoration (All rooms & communal)£4,000
Flooring (Heavy-duty carpet/LVT)£3,000
Furniture Packages (4 rooms)£4,000
Electrical Upgrades (Sockets, USBs, Cat6)£2,500
General contingency (10%)£2,800
Total Estimated Cost£35,000

Refurbishment Timeline:

Weeks: 8 || Months: 2

Phase 1: Stripping, Fire Safety & Partitioning (2 weeks)
Phase 2: Kitchen, Plumbing, & Electrical Works (3 weeks)
Phase 3: Flooring, Decorating & Snagging (2 weeks)
Phase 4: Furniture Install & Staging (1 week)

Licensing & Compliance

The property is a 3-bed terraced house. Conversion to 4-bed is straightforward. Ensure compliance with fire regulations (thumb turns, interlinked alarms) regardless of licensing threshold.

Negotiation Points

Kitchen Condition
Damage visible in images suggests immediate replacement costs.
Probability: 80%
EPC Rating D
Potential for higher energy bills and future regulation pressure.
Probability: 60%
Time on Market/Seller Urgency
Mentioning "No Onward Chain" is a benefit to us, but allows us to push for a discount for a quick, cash-like purchase.
Probability: 50%

Investment Case Summary

Short Recommendation

Proceed with caution. The property is well-priced for a 4-bed HMO project. Prioritize the kitchen renovation and fire safety to secure professional tenants immediately upon completion.

Detailed Recommendation

This property is a strong candidate for a professional house share. The rental data for SN3/Swindon highlights robust demand for double rooms with shared facilities at approx £650pcm. By converting a reception room to a bedroom, you create 4 income streams. I advise verifying the local council's Article 4 status before finalizing the layout. Negotiate the price based on the dated kitchen and the requirement for a full fire safety retrofit, which is a non-negotiable expense for a compliant HMO. If you can secure the purchase at £215k, the ROCE will improve significantly. Execute the works efficiently and aim for "high-spec" professional finishes, as the Swindon market is competitive for quality rooms.