HMO · Property AnalysisThis property is a modern, 2-bedroom leasehold apartment in Sheffield City Centre. It is not suitable for an HMO project due to physical constraints and typical leasehold restrictions in such buildings. Projected ROCE as a standard let is 14.8%.
The property at Fargate House is a 2024 conversion flat offering 578 sq ft of living space. While excellently located and finished to a high standard, it lacks the footprint and floor count required to create a viable, compliant HMO (Houses in Multiple Occupation). With only 2 bedrooms and an open-plan living/kitchen, there is no scope to add the necessary bedrooms to achieve high-yield HMO performance. This investment should be treated as a standard Buy-to-Let (BTL) or residential purchase, not a BRR/HMO development project, offering a projected ROCE of 14.8%.
The property is a 2-bed apartment. It does not meet the legal threshold for an HMO (requires 3+ unrelated sharers). Even if considered, leasehold terms in Fargate House likely prohibit sub-letting by the room.
Max Compliant Occupant Count: 2 Adults. Recommended Layout: Keep as 2-bed professional let.
Weeks: 2 || Months: 0.5
Risk Level: 1 (Very Low Risk for BTL)
The property is modern (2024 conversion), meaning structural risks are minimal. The primary "risk" is identifying this as a poor HMO candidate. Treat it as a standard BTL purchase.
Do not proceed with this as an HMO project. It is, however, an excellent, low-risk BTL investment for a first-time buyer looking for a steady, modern, and easily managed city centre asset with a 14.8% ROCE.
The Fargate House property is a turnkey asset. As an HMO evaluator, I must advise against this purchase if your sole objective is an HMO conversion, as the configuration simply doesn't support the required density. However, if your strategy allows for a high-quality, professional Buy-to-Let, the numbers (8.73% Gross Yield and 14.8% ROCE) are strong for a modern city centre flat. The build quality, EPC rating of C, and central location minimize void risks. Ensure you verify leasehold restrictions on letting and confirm the final annual service charge figure before commitment.