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Imagine you’re a first-time investor in the North East, scrolling Rightmove on a quiet August afternoon (this one was added back on June 15, 2022, with a price jump to £79,950 in June 2022—up 23.1% from £64,950). Up pops this 3-bedroom terraced house in St. Chads Close, Bishop Auckland—complete with a long-term sitting tenant for instant income. At £79,950, it’s positioned as an “ideal investment,” but let’s break it down like we’re chatting over coffee, assuming you’re new to this. I’ll explain every number and assumption with real 2025 data from sources like Rightmove, ONS, and local reports—no fluff, just facts to help you evaluate if it’s worth pursuing.
The basics: This freehold terraced house boasts 3 bedrooms, 1 bathroom, gas central heating, double glazing, a lounge, kitchen, and rear garden with patio. It’s in a nice area of Bishop Auckland, close to amenities. Layout: Ground floor likely hall, lounge, kitchen; upstairs 3 beds and bath (typical for size ~800 sq ft). Sold with tenant—perfect for cash flow, but check AST terms. Click here to view: http://rightmove.co.uk/properties/123932357#/?channel=RES_BUY
Why Bishop Auckland? Location Fundamentals for Beginners
Bishop Auckland, in County Durham (North East England, ~40 mins train to Newcastle), has strong fundamentals for affordable investing. Transport: Good rail links via Bishop Auckland station to Durham/Newcastle. Employers: Local retail, services, and commuting to bigger hubs like Teesside or Nissan. Growing popularity? Population steady (town ~25k, county 522k per ONS; net housing need despite younger decline, with 11,558 more over-65s by 2035). Future trends: £192m regeneration (new leisure centre £27.3m starting 2025, Market Place redevelopment, Weardale Railway enhancements) could boost values—North East prices up 7.9% YoY, Durham avg £138k +10.7%. Risks: If younger exodus continues, demand dips, but affordability and projects make it resilient.
Strategy Fit: What’s the Best Play Here?
For novices, leverage the tenant and layout. Top: Buy Refurbish Refinance (BRR)—buy low, refurb, refinance uplift. Priced below avg (£138k Durham). Others:
- Houses in Multiple Occupation (HMO): Good fit! Convert to 4 rooms (add en-suites, repurpose lounge)—suits workforce/students. Durham requires licensing for 5+ occupants (£1,020 fee from April 2025; standards like min room sizes).
- Buy to Let (BTL): Simple—keep tenant for family let. Post-refurb, pros/commuters.
- Serviced Accommodation (SA): Possible short stays (near attractions), 60% occupancy.
- Others: Single Lets to Professionals/Students. Skip Holiday Lets/Commercial. Rent-to-Rent if tenant ok, but BRR/HMO shine.
Focus conversions for profits.
Financial Breakdown: Making It Profitable
Calcs explained with 2025 data (Durham rents +8.9%, prices +10.7%).
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Price & Offer: £79,950. Rightmove: Terraces sell £74k-£82k—offer 5-10% below (£72k-£76k) per comparables.
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Refurb Costs: North East £80-£100/sq ft. Light BTL: £15k-£20k. HMO: £30k-£40k.
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Fees: SDLT £2,398 (3%). Legals £2k. Total ~£4.4k.
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Rents: Zoopla/Rightmove.
- BTL: £650-£925/month (£7,800-£11,100/year).
- HMO (4 rooms): £585-£650/room (£2,340-£2,600/month).
- SA: ~£1,100/month net.
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Yield: HMO: (£28,080 / £115k) x 100 = 24.4% ((annual rent / total cost) x 100; strong vs. 8-14% regional).
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Post-Refurb Value: £110k-£120k (30% lift).
BRR/HMO: £80k buy + £35k refurb, refinance 75% LTV = recycle deposit.
5-Year Forecast: Looking Ahead with Trends
2025 base: North East prices +7.9%, UK +2-4% (Savills +1%, Knight Frank 3.5%; cumulative 21.6-24.5%). Rents +3-8.9%. Pop need + projects support 4% value, 3% rent. Risks: Decline in young = -1-2% yields.
| Year | Value (4% growth) | Rent (HMO, 3% growth) | Yield | Trends |
|---|---|---|---|---|
| 1 | £83k → £115k (post-refurb) | £28,080 | 24% | Leisure centre start; prices +10.7%. |
| 2 | £119k | £28,922 | 24.3% | Market Place done; pop need up. |
| 3 | £124k | £29,790 | 24% | Inflation rents; cumulative +3%. |
| 4 | £129k | £30,684 | 23.8% | Regional 5%; re-refinance. |
| 5 | £134k | £31,604 | 23.6% | 20%+ gain; projects add 2%. |
Net ~£65k profit (minus voids/maintenance/Council Tax).
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 beginners—tenanted low entry, 24% yields potential, Bishop Auckland’s regeneration (£192m). But check tenant/survey/HMO regs.
This newsletter is provided by Mike Bells Property Sourcing for educational purposes only. Properties featured, including Property Snapshot: St. Chads Close, Bishop Auckland, 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.