Crown Terrace

8–9 Crown Terrace, Scarborough, YO11 2BL

A Rare Freehold HMO Investment – 23 Bedrooms + Warden’s Flat – Video Tour Of The Development Here – CLICK HERE

Property Overview

We are pleased to present to market this exceptional freehold investment property in the heart of Scarborough.

This substantial 7,000 sq. ft. terraced property, arranged over five floors, offers:

• 23 fully let bedrooms
• 1 additional warden’s flat
• 22 bathrooms
• Fully licensed HMO status
• Compliant with all building regulation requirements

Currently self-managed, the property runs efficiently with full occupancy and zero arrears.

Financial Overview

• Asking Price: £1,200,000
• Gross Rental Income: £12,000 per month / £144,000 per annum
• Outgoing Costs: approx. £20,000 per annum (utilities, internet, upkeep)
• Net Operating Income: approx. £124,000 per annum
• Net Yield: 10.3% at asking price

This is a high-yielding freehold asset offering both immediate strong returns and future income growth potential.

Investment Highlights

• Substantial 23-bed HMO with warden’s flat – a rare scale for the area
• 100% occupancy with no arrears
• Strong net returns: 10.3% yield
• Freehold tenure – full ownership security
• HMO licence in place – fully compliant
• Low running costs relative to income
• Significant rental growth potential

Rental Growth & Market Upside

Student & Professional Demand

Scarborough has seen growing student demand driven by:

• Coventry University Scarborough Campus
• Scarborough TEC
• A strong base of young professionals and seasonal workers

Purpose-built student accommodation is limited, making HMOs the most popular option for affordable shared living.

Rental Growth in Scarborough

• Scarborough’s rental market has seen consistent upward trends in rental values, in line with national growth.
• With rising demand and limited supply, investors can expect continued upward rental pressure.
• Further income increases are achievable through:
  • Revised rental structures
  • Professional management
  • Targeting higher-value student or professional tenants

This asset is not only secure but primed for income growth over the coming years.

Location

Crown Terrace, Scarborough offers tenants:

• Immediate access to Scarborough town centre amenities
• Proximity to seafront, cultural attractions, and leisure facilities
• Excellent transport links, including Scarborough Train Station
• Walking distance to education hubs and local employment centres

This location ensures sustained tenant demand and supports long-term investment stability.

Summary

8–9 Crown Terrace, Scarborough YO11 2BL offers investors a rare opportunity to acquire a large-scale freehold HMO delivering over 10% net yield with strong occupancy and proven income.

With Scarborough’s student and professional rental market expanding and demand outpacing supply, this property combines secure present-day returns with significant upside potential.

Get in touch with the team