About this investment

Irlam, Manchester M44 – 12% Yield

The Client Brief

A new client approached us in search of a high-yield investment opportunity in Manchester, with a clear focus on properties suitable for conversion into supported accommodation. Their criteria were precise: a 3-bedroom house located in an area with strong rental demand and a demonstrated need for social housing. The property had to be structurally sound and require minimal refurbishment to meet compliance standards. They were particularly keen on securing a long-term lease with a registered provider to ensure consistent, low-maintenance returns. After exploring several options, we identified a promising opportunity in Irlam—a well-connected area with growing demand for quality rental housing and strong potential for long-term investment stability.

What We Did

We sourced a suitable 3-bedroom property in a high-demand part of Manchester, well-suited for conversion into a compliant Social HMO. The property was structurally sound and required only internal refurbishment to meet the expectations of supported housing providers. Our team managed the entire process end-to-end—from acquisition through to compliance—overseeing all necessary works including fire safety upgrades and layout modifications to ensure the property met supported living standards.

The house was fully refurbished and thoughtfully converted into a high-quality Social HMO. Each bedroom was designed with the end-user in mind: two feature private en-suites, while the third benefits from a dedicated off-suite bathroom. In addition, all rooms were fitted with individual kitchenettes, promoting greater independence for future tenants. Upon completion, the property was leased to a registered provider on a long-term agreement, securing the investor a stable and hands-off rental income. The result is a high-yield, low-maintenance asset that also contributes to the delivery of much-needed social housing in the region.

Why Social HMO’s?

Social HMOs (Houses in Multiple Occupation) offer a unique investment model that combines reliable financial returns with meaningful social impact. Unlike traditional HMOs, Social HMOs are typically leased to registered providers or care organisations on long-term, often full-repairing leases. This provides investors with consistent, hands-off income and reduces many of the common risks associated with private renting—such as void periods, tenant turnover, and ongoing maintenance costs.

There is a growing demand for supported housing across the UK, driven by increasing pressure on local authorities to provide safe and compliant accommodation within the community. Social HMOs help meet this demand by offering quality housing that aligns with government and provider standards, while offering investors a resilient, low-risk income stream. With strong rental yields, minimal ongoing management, and the opportunity to contribute to a socially responsible housing solution, Social HMOs are an increasingly attractive option for investors seeking both stability and long-term growth.

Floorplans

Originally a 2-bedroom property, this home was reconfigured to create a more functional and space-efficient layout. As part of the refurbishment, a third bedroom was added on the ground floor to maximise occupancy and meet the requirements of a 3-bedroom Social HMO. The floorplans below reflect the layout after the refurbishment, showcasing the improved use of space and suitability for supported living.

Success Story in Numbers

Purchase Price: £166,500
Refurb Costs: £48,950
Monthly Rental: £2,551
ROI: 12.0%