Double deal reflects growing confidence in city’s rental sector

BB&J Commercial has confirmed the joint sale of two prominent Georgian era properties in Derby city centre.

The firm has sold 58 and 59 Friar Gate – two adjoining Grade II Listed HMO (House in Multiple Occupation) properties.

Together, the buildings comprise 10 lettable rooms, and, according to BB&J,  attracted strong interest from local and regional investors alike.

It said that much of the demand was fuelled by the properties’ proximity to the University of Derby, as well as their high occupancy levels and robust rental income potential.

According to BB&J, the deal reflects a wider trend in Derby’s investment landscape, as buyers look to secure compliant HMO stock ahead of the city’s forthcoming Article 4 direction, which will restrict new HMO conversions in certain areas.

Cameron Godfrey, agency surveyor at BB&J Commercial, who oversaw the transaction, said: “The level of interest we received for these properties highlights the ongoing strength of Derby’s HMO market.

“Given their location and stature, we saw significant buyer engagement early on, leading to a best and final bids process that created a highly competitive environment.

“With Derby’s upcoming Article 4 direction, the demand for well-established, fully compliant properties like these is only expected to rise.

“Investors are increasingly seeking opportunities in prime locations where supply is becoming more limited, and the sale of 58 and 59 Friar Gate reflects this trend.

“It’s a great result for our client and a sign of the growing confidence in the city’s rental sector.”