Tag Croft, Preston

Completed project | Preston

A terraced property converted into a 5-bed HMO and onboarded by a Registered Provider after renovation. The case shows the importance of provider specification, onboarding and lease clarity when positioning a completed social housing leased asset.

Primary result

Provider onboarded

Yield

9.53%

Delivery scale

5 rooms

Route / strategy

Social housing leased assets

Story

The situation

Tag Croft had been converted into a 5-bedroom HMO to meet the Registered Provider’s requirements. The provider had previously expressed interest, the property was converted to specification and onboarded in February 2023 following renovation.

The problem

The case needed to distinguish between a completed HMO and an investment-ready provider-leased asset. The buyer narrative had to explain the lease term, onboarding status, acquisition cost and refinance assumptions without overstating the capital value position.

What was done

Root Home framed the asset around its completed conversion, provider specification, onboarding date, lease term and income assumptions so the opportunity could be assessed as a leased operating asset.

Project media

Delivery and works

Scope

No further works were required for the case-study position. The conversion had been completed in January 2023 and the provider onboarded the property shortly afterwards.

Execution

The property was converted to the Registered Provider’s specification and moved into provider occupation, with the investment case structured around acquisition costs, lease term and income.

Stabilisation

The provider onboarded the property in February 2023 and offered an initial 5-year lease, creating a defined income route and operating position.

Financial outcome

Total cost

£211,350

Total capital deployed.

End value

£170,000

Delivered value.

Profit or uplift

Provider onboarded

Primary project result.

Yield

9.53%

Reported where relevant.

Programme

Converted January 2023; onboarded February 2023; initial 5-year lease

Total programme.

Units delivered

5 rooms

Output delivered.

Result and impact

Operational result

The project moved from conversion to provider onboarding, creating a 5-bed social housing leased HMO with a known lease position and defined cashflow assumptions.

Who benefits

A buyer seeking provider-backed HMO income benefits from a completed conversion, known onboarding position and clearer operating assumptions.

Why it matters

This case shows that provider specification and onboarding are as important as the physical conversion when assessing social housing leased assets.

Lessons and strategic value

– Provider specification should be confirmed before relying on conversion assumptions.
– Onboarding date and lease term need to be explicit.
– Capital value and income profile should be explained separately.
– A completed HMO is not automatically investment-ready without provider alignment.

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