Arundel Street, Redcar, TS10
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. Four of the five rooms are tenanted, producing approximately £26,880 per annum, a gross yield of around 13.6% at the asking price. With all five let the roll is approximately £33,600, around 17% gross. 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 on a bills-inclusive letting model
- Central Redcar (Coatham), close to the seafront and town centre
- Four of five rooms tenanted, approximately £26,880 p.a. gross (c. 13.6% at asking)
- Fifth room available: approximately £33,600 p.a. fully let (c. 17% 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. Four of the five rooms are currently tenanted, generating approximately £26,880 a year in gross income, around 13.6% gross at the asking price; with all five let that rises to approximately £33,600, around 17% gross.
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 (current) | c. £26,880, four of five rooms let |
| Gross yield (current) | c. 13.6% at asking |
| Gross rent pa (fully let) | c. £33,600 |
| Gross yield (fully let) | c. 17% at asking |
| Letting rooms | 5, four tenanted and one available |
| Property | 124 m² mid-terrace |
| EPC | Band C |
| Planning | Confirmed Article 4 direction area (made September 2025) |
| Buyer profile | Cash or HMO-specialist |
