Arundel Street, Redcar, TS10

Overview

An established five-room HMO in central Redcar (TS10, Coatham), arranged over a 124 m² mid-terrace (EPC band C) and let on a bills-inclusive basis. The rooms generate gross income of approximately £33,600 per annum, a gross yield of around 17% at the asking price. The property sits within the Coatham Article 4 direction area. The direction was made on 25 September 2025 and confirmed by Redcar and Cleveland Borough Council on 11 June 2026, and it comes into force on 5 October 2026. It is not yet in force, so a change of use from C3 to C4 in Coatham remains permitted development until that date. From 5 October new small HMOs will need planning permission, which supports the scarcity value of an established HMO like this one. Best suited to a cash or HMO-specialist buyer.

Investment highlights

• Established five-room HMO, let on a bills-inclusive basis
• Central Redcar (Coatham), close to the seafront and town centre
• Approximately £33,600 p.a. gross income (c. 17% gross at asking)
• Within the Coatham Article 4 direction area, confirmed 11 June 2026 and in force from 5 October 2026 (scarcity)
• 124 m² mid-terrace, EPC band C
• Suited to a cash / HMO-specialist buyer

Location & demand

Arundel Street sits in Coatham, central Redcar, a short walk from both the seafront and the town centre. The property is an established five-room HMO arranged over a 124 m² mid-terrace (EPC band C), with the rooms let on a bills-inclusive basis and generating approximately £33,600 a year in gross income, around 17% gross at the asking price.

The planning backdrop matters. Coatham falls within a confirmed Article 4 direction area (direction made September 2025), under which new HMO conversions will require planning permission. That cap on future competition gives an established five-room HMO genuine scarcity value and favours operators already in place. The property is best suited to a cash or HMO-specialist buyer.

The numbers

Asking price	£198,000
Gross rent pa	c. £33,600
Gross yield	c. 17% at asking
Letting rooms	5, let bills-inclusive
Property	124 m² mid-terrace
EPC	Band C
Planning	Confirmed Article 4 direction area (made September 2025)
Buyer profile	Cash or HMO-specialist