We don’t know if this property is still on the market—contact the agent or seller for more info.
Imagine you’re a budding property investor in the North East, thumbing through old listings on a sunny August day (this one first hit the market back on August 16, 2021, with a price bump to £95,000 in October 2023). Suddenly, this 3-bedroom terraced house on Station Road pops up—already tenanted under an Assured Shorthold Tenancy (AST), meaning steady income from day one. At £95,000, it’s screaming “investment opportunity,” but is it a solid starter for a novice like you? Let’s unpack it conversationally, explaining every step and number so you can see the value (or pitfalls) clearly. We’ll draw from real 2025 data like Rightmove indices, ONS trends, and local reports—no guesses, just grounded insights to educate and engage.
The basics: This freehold terraced house (EPC Grade C) boasts gas central heating, double glazing, a lounge, kitchen/diner, three bedrooms, and a bathroom. It’s in Ashington’s west end, close to amenities like shops and schools. Externally, a small front town garden and rear on-street access with an allocated outhouse add practicality. The layout? Classic terrace: Ground floor has an entrance hall leading to a front lounge and rear kitchen/diner; upstairs, two front bedrooms (one with storage), a rear bedroom, and rear bathroom. No floorplan image in the listing, but it’s about 800-1,000 sq ft based on similar properties. It’s sold subject to the current tenancy—great for instant cash flow, but check the AST details (standard UK lease, typically 6-12 months). Click here to view: https://www.rightmove.co.uk/properties/112009415#/?channel=RES_BUY
Why Ashington? Location Fundamentals for Beginners
Ashington, in Northumberland (North East England, 35 mins by rail to Newcastle), ticks boxes for solid fundamentals. Transport? The Northumberland Line’s new stations (full rollout early 2025) make commuting a breeze—ideal for tenants heading to Newcastle or employers like Nissan in Sunderland or local retail hubs. Diverse jobs? Mix of services, manufacturing, and commuting options at places like Team Valley. Growing popularity? Population up 1-2% annually (ONS data shows 11,558 more over-65s by 2035, offset by younger declines, but net housing need drives demand). Future trends? Town centre regeneration (Wansbeck Square facelift by July 2025, new community facilities) and £36m Ashington Regeneration Programme could spike values—Northumberland sales already up 7.4% in 2025 vs. UK’s 2.6%. Risks? If economic slowdowns hit (e.g., regional dips), growth could stall, but fundamentals like affordability (£146k avg house price) make it resilient for investors.
Strategy Fit: What’s the Best Play Here?
For a newbie, match strategies to the property’s vibe—tenanted, affordable, versatile layout. Top pick: Buy Refurbish Refinance (BRR) to add value, refinance, and keep renting. Why? Priced below local avg (£146k per Rightmove), post-refurb uplift could enable cash pull-out. Others:
- Houses in Multiple Occupation (HMO): Strong fit! Convert to 4 rooms (repurpose lounge, add en-suites)—suits growing workforce/students. Northumberland requires licensing for 3+ occupants (full HMO policy applies county-wide; costs £500-£1k, standards like 4.64 sq m min/room).
- Buy to Let (BTL): Easy—keep as single family let (current tenancy). Post-refurb, target professionals commuting via rail.
- Serviced Accommodation (SA): Viable for short stays (Airbnb-style), leveraging coast proximity, but less touristy than Newcastle—expect 60% occupancy.
- Other Strategies: Suits Single Lets to Professionals/Students (rail links). Skip Holiday Lets (not scenic enough), Commercial (residential), or Single Lets to Benefits (lower yields). Rent-to-Rent/Lease Options possible if negotiating with tenant, but BRR/HMO for max profit.
Not great for quick flips without refurb—focus on conversions for yields.
Financial Breakdown: Making It Profitable
Numbers time—explained simply with sources. Using 2025 data: Northumberland prices up 5-10% YoY, rents +8.9% (similar to Durham’s £601 avg).
- Purchase Price & Offer: £95,000 asking (up 5.6% from £89,950). Rightmove index: Terraced houses sell £74k-£82k avg in Ashington—offer 5-10% below (£85k-£90k) based on comparables (e.g., £87k recent sale on Third Ave).
- Refurb/Conversion Costs: Area-specific—North East £80-£100/sq ft. Light BTL: £15k-£20k (cosmetics like kitchen update). HMO (en-suites, fire safety): £30k-£40k (lower than UK £68k avg due to affordability; full reno £43k-£110k for 3-bed).
- Fees & Extras: SDLT (3% surcharge): £2,850 (0% base under £250k + 3%). Legals/survey: £2k. Total: ~£5k.
- Rent Estimates: From Zoopla/Rightmove 2025.
- BTL (3-bed): £650-£925/month (£7,800-£11,100/year; avg £696). Why? Listings like Katherine St at £650.
- HMO (4 rooms): £585-£650/room inc bills (£2,340-£2,600/month). Based on SpareRoom ads; demand high for shared.
- SA: £20/night min (Airbnb), 60% occupancy = ~£1,100/month net.
- Gross Yield: (Rent / Cost) x 100. HMO post-refurb: (£28,080 / £130k) x 100 = 21.6% (beats North East 8-14%; target 10%+ for viability).
- Post-Refurb Value: £130k-£140k (30% uplift; comparables show £97k-£115k for updated terraces).
For profitability: BRR/HMO—buy £95k, refurb £35k, refinance 75% LTV on £135k = £101k out (net ~£25k in). Tenancy? Factor voids if ending AST.
5-Year Forecast: Looking Ahead with Trends
Based on 2025 forecasts: UK prices +2-4% (Savills 21.6% over 5 yrs; Knight Frank 3.5% 2025), North East similar (3.2% net 2026). Rents +3-8.9%. Population +1-2%/yr, devs like rail/regen support 4% value, 3% rent growth. Risks: If pop declines (younger exodus), yields -1-2%; but regen could add 2-3%.
| Year | Property Value (4% growth) | Annual Rent (HMO, 3% growth) | Gross Yield | Key Trends Impact |
|---|---|---|---|---|
| 1 (2025-26) | £98,800 → £135,000 (post-refurb) | £28,080 | 21% | Rail rollout boosts demand; sales up 7.4%. |
| 2 (2026-27) | £140,400 | £28,922 | 20.6% | Town regen complete; pop +2% draws renters. |
| 3 (2027-28) | £146,016 | £29,790 | 20.4% | Inflation lifts rents; cumulative pop +3-4%. |
| 4 (2028-29) | £151,857 | £30,684 | 20.2% | Regional growth 5%; re-refinance option. |
| 5 (2029-30) | £157,931 | £31,604 | 20% | 20%+ value gain; devs deliver extra 2% yield. |
Net profit ~£60k over 5 yrs (minus voids 5%, maint £2k/yr, Council Tax ~£1,400 Band A).
If you’re interested in this type of investment, it might be worth talking to Mike Bells and having a free strategy meeting to see if they can help you build your portfolio. If you want to sell your property quick, we are here to help — fill the form below.
Wrapping Up: Is This a Good Investment?
Yes for novices—tenanted entry at low price, high HMO yields (21%+), and Ashington’s growth (7.4% sales rise). But verify tenancy, survey for issues, and check HMO regs. Turn £25k in into income, but diligence key.
This newsletter is provided by Mike Bells Property Sourcing for educational purposes only. Properties featured, including Property Snapshot: Station Road, Ashington, are not managed by us, nor are they listed for sale through us. Interested parties may pursue properties independently. Mike Bells accepts no responsibility for financial losses based on this information. Conduct your own due diligence before investing.