Property Overview
- Property Type: End‑terraced house, Freehold
- Bedrooms: 4
- Bathrooms: 3
- Parking: Two allocated off‑street spaces
- Gardens: Front and rear
- Current Use: Small HMO occupied by three tenants (no licence needed)
- Condition: Good
- Service Charge: Approx. £500/year
Sale Price: £600,000 (expected)
Gross Rental Income: £3,200 pcm = £38,400 pa
Occupancy Rate: 100%
No arrears, no planned vacancies
Investment Returns
Gross Yield: 6.4% gross yield
Net Yield: 6.3%
This places the property well above the average rental yield in Mitcham (5.1%) and CR4 at 5.8%. London’s average in 2025 is around 4.3% with many outer-zone averages around 4.5–5.7%.
Capital Appreciation & Market Trends
CR4 (Mitcham) Historical Performance
- 20‑yr nominal growth: 96% (4% p.a.)
- 1‑yr nominal growth: 4.1%
Borough Summary: Merton
- Median house price (2022): £560,000 vs London average £530,000
- For Mitcham, average current asking price £475K; many sales closer to £480K
London-Wide Trends
- CR4 shows modest but steady long-term increase; recent annual growth is positive 4.1%
Property Features & Benefits
Accommodation
- 4 bedrooms, 3 bathrooms, ideal for shared living
- Fully tenanted with stable incomes.
Location
- Situated in CR4 (Mitcham) with transport links via Mitcham Eastfields station, Mitcham Junction and tram connections
- Close to Mitcham Common, shops, schools, and green spaces
Financial Advantages
- Off-street parking is rare
- No managing agent fees, reducing overhead
- Good condition: minimal maintenance costs needed
Investment Summary
| Metric |
Value |
| Purchase Price |
£600,000 |
| Annual Rent (Gross) |
£38,400 |
| Gross Yield |
6.4% |
| Net Yield |
6.3% |
| Local Average Yield |
5.1% (Mitcham) |
| 1‑yr Price Growth (CR4) |
4.1% |
| 20‑yr Nominal Growth |
96% (CR4), 117% (CR4 area) |
Investment Rationale
- Strong income potential: A gross yield of 6.4% significantly exceeds local and London averages
- Stable tenancy: Fully occupied, well-established rental income
- Solid long‑term capital gain: CR4 has delivered 96% nominal growth across two decades
- Low ongoing costs: Minimal management fees and service charges
Highlights
- Attractive freehold end‑terrace with garden and parking
- Well‑configured 4-bed, 3-bath HMO bringing £3,200 pcm
- Freehold, good condition, no major works required
- Investment yield: ~6.4% gross / ~5.8% net
- Capital appreciation potential in line with CR4 historical growth
- Attractive to buy‑to‑let investors, especially for small HMO use
Summary
97 Miles Road represents a high-yield, low-management, income-producing property in an established South London location. Strong transport links, local amenities and Mitcham Common enhance tenant appeal, while rental returns and capital growth are above London averages.
