Property Address: Kinley Street, St Thomas, Swansea

Property Description: Investment Opportunity: Fully Let 4-Bedroom HMO on Kinley Street, St. Thomas, Swansea

This 4-bedroom student HMO on Kinley Street, St. Thomas, offers a unique investment opportunity for savvy investors looking to capitalize on Swansea’s student rental market. The property is currently fully let, generating a rental income of £1,280 pcm, with tenants contracted until July 2025 and paying their own bills. The HMO licence is valid until March 2026, allowing for a streamlined investment experience without immediate concerns over licensing renewals, especially advantageous given the increasing difficulty of obtaining new HMO licences in Swansea.

The property’s condition is good, making it ready for immediate returns. With Swansea University and the city center in close proximity, St. Thomas is a popular area among students, offering convenient access to local amenities, transport links, and vibrant student life. This location’s appeal has consistently supported high occupancy rates and makes it an ideal student rental market.

For an investor looking to add value, there is an ideal pathway forward: purchase now, retain the existing tenants, and plan for a small renovation during the summer break. Upgrading the property could enable a rental uplift to approximately £1,600 pcm, which would support a commercial valuation of £180,000, enhancing both cash flow and overall property value.

Additionally, this property is available as a direct-to-vendor deal, simplifying the sales process for a quicker, smoother acquisition. This is a rare opportunity to secure a fully operational, licensed student HMO in an in-demand location, ensuring a strong return on investment with clear avenues for future growth. Don’t miss out on this solid entry into Swansea’s thriving student rental market.

Number of Bedrooms (current): 4

Is there potential to add a bedroom?: No

Reception Rooms: 1

Bathrooms/shower-rooms: 2

Property Asking Price: £170,000

Agreed Sale Price: £155,000

Fair Market Value (DUV): £170,000 Bricks and Mortar Valuation

Comparable 1: 3 Bedroom Terrace Sold £160,000: https://www.rightmove.co.uk/house-prices/details/england-21242140?s=82951830f5adbcfd9016e13ac5fa4efe360027d77c87d8472e26897bcd2c1242#/

Comparable 2: 3 Bedroom Terrace Sold £160,000: https://www.rightmove.co.uk/house-prices/details/england-86764812-20966098?s=dd4b403b2b3bbc81cfcff91f9181616453dfde9df825f4d840104d97ee792313#/

Comparable 3: 3 Bedroom Semi Sold £190,000: https://www.rightmove.co.uk/house-prices/details/england-86350881-21242137?s=bd8757f9d496dda205f69f9a09aa1a303486b3d864adb719a4dd99aca4b3419d#/

 Comparable 4: 3 Bedroom Terrace sold £160,000: https://www.rightmove.co.uk/house-prices/details/england-137225756-94135971?s=af4dcfe8a1b96a74c502222cead82b64533d07eb03aa5273cb88b0b745b55713#/

 Comparable 5: 3 Bedroom Terrace Sold £167,000: https://www.rightmove.co.uk/house-prices/details/england-141476132-94135962?s=884ec0ef52a8492f027decb44f8f1d1f3b91fe143dd3e0ed9e82829e0a46d627#/

 Comparable 6: 4 Bedroom Terrace sold £170,000: https://www.rightmove.co.uk/house-prices/details/england-126954932-18870904?s=3bde9943e8f05caa46a7cbe9e1f0e88eaad8c3aa206cc8cab8307016968cc893#/

 Comparable 7: 3 Bedroom Terrace sold £153,000: https://www.rightmove.co.uk/house-prices/details/england-127328516-93908319?s=72e36e32db84c6fb33339e0d2dd0da536de24aad3fc0adccc634a65070016dec#/

 Comparable 8: 3 Bedroom Terrace sold £180,000: https://www.rightmove.co.uk/house-prices/details/england-18870916?s=c82c740f1af1a54d6c1938d8e167d6a65bebca0bce052c8c02b1f7dd768e9b47#/

After a light renovation of the property during the summer months the rent can be increased and the commercial valuation opportunity for a refinance can take that to £181,333

Market Status: off market

Why is the property being sold?: The landlord or co-operate selling off assets

Is the property in a lettable condition: Yes

Is the sale price negotiable?: No

Property Type: House

Freehold or Leasehold: Freehold

Is the property part of portfolio?: Unknown

Exit Strategy 1: Multi-let / HMO

Exit Strategy 2: BTL

Exit Strategy 3: Capital Growth

If HMO strategy please select: Property is in an article 4 area and has an existing HMO licence from the local authority.

Potential Target Demographic: Students

Refurbishments Required: The property is currently fully let and in good condition, meeting all the requirements for a fully licensed HMO. A recommended investment plan would be to complete a light renovation during the vacant summer months, allowing for an increase in rental income for the next academic year. This would include painting and decorating, minor repairs and sealing, improved lighting, and new furniture and furnishings, with estimated costs around £8,000 to deliver an appealing, refreshed interior.

Estimated Refurbishment Costs: £8000

BTL Figures: Purchase Price: £155,000

Refurb Costs: £0

Legal Costs: £1600

Stamp Duty: £6200

Survey: £450

Broker Fee: £0

SMP Consultation Fee's: £4997

Estimated Rental Income: £1280,000

New Mortgage: £532.81 at 5.5% rates

Stress Test Mortgage: £629.69 at 6.5% rates

Running Costs: £217.60

Cash Flow Most Likely: £529.59

Cash Flow Stress Test: £432.71

Area Description: Area Overview: Kinley Street, St. Thomas, Swansea – Ideal Location for Students

Located in the popular St. Thomas neighborhood, Kinley Street is an excellent choice for students seeking convenient, affordable off-campus accommodation. This area is just a short distance from Swansea's Bay Campus, making it ideal for students who want to minimize travel time while enjoying the benefits of living off-campus. Frequent public transport options and dedicated cycle paths offer quick and easy access to the university and other parts of the city, making it a well-connected location for students without a car.

St. Thomas also provides a balance of quiet residential streets and easy access to essential amenities, such as grocery stores, cafes, and affordable dining options, all catering well to student budgets. Kinley Street’s proximity to Swansea city center means students can enjoy Swansea’s vibrant nightlife, entertainment venues, and shopping districts, all just a short bus ride or bike journey away.

Furthermore, this area often offers more affordable rental rates than on-campus options, which appeals to students looking to stretch their budgets. For investors, the demand for student rentals in this area has consistently been high, ensuring a stable, reliable tenant base.