Detached house for sale

Herrington Burn House, Herrington Burn, Houghton Le Spring, County Durham DH4

For sale by auction on Tuesday, 09 Sep 2025 at 12:00

Venue: Live Stream

Investment Opportunity – Multi-Let Site with Development Flexibility

Current Passing Rent: £99,440 pa

This freehold property offers a rare opportunity to acquire a substantial multi-let site with a mix of contracted-out leases and tenancy-at-will agreements, providing both secure income streams and flexibility for future redevelopment or re-letting.

Income Breakdown

1.{tab}Unit 1 – Tenancy at will. £500 pcm / £6,000 pa. Long-standing tenant who relocated for larger space; indicated intention to remain.

2.{tab}Units 2,3 & 4 – Contracted-out 7-year leases (from July 2024) with landlord break option Jan 2028. Rent reviews 2026 & 2029. Combined rent £620 pw / £32,240 pa.

3.{tab}Unit 5 – 7-year contracted-out lease from July 2024, landlord break Jan 2028. Current rent £350 pw incl. Utilities (£18,200 pa) . Significant upward rent review potential from July 2025.

4.{tab}Unit 6 – 7-year contracted-out lease from July 2024, landlord break Jan 2028. Rent £100 pw / £5,200 pa. Rent review available July 25

5.{tab}Unit 7 – 7-year contracted-out lease from July 2024, landlord break Jan 2028. Rent £250 pw / £13,000 pa. Rent review available July 25

6.{tab}Units 8 & 9 – Both let on tenancy at will (from Aug 2024). Current rents: Unit 8 – £150 pw (£7,800 pa), Unit 9 – £50 pw (£2,600 pa). Both are occupied at below-market levels and can be re-let at higher rents or vacant possession provided if required. Interest already received from a prospective tenant at an improved rent.

7.{tab}Two Bungalows – Currently let at £600 pcm each (£14,400 pa total). Rents not increased since 2016, offering clear uplift potential.

Key Highlights

1.{tab}Current rental income: £99,440 pa (with Unit 5 at £350 pw)

2.{tab}Adjusted rental income: £86,440 pa (with Unit 5 at £250 pw)

3.{tab}Further rental growth potential from:

1.{tab}Rent reviews (notably Unit 5 in 2025)

2.{tab}Re-letting Units 8 & 9 at market rent

3.{tab}Increasing bungalow rents (unchanged since 2016)

1.{tab}Flexible occupation mix with leases contracted out of the Landlord & Tenant Act, offering scope for redevelopment or alternative use if desired

Additional Fees
Administration Charge - 1.2% inc VAT of the purchase price, payable on exchange of contracts.

Please see the legal pack for any disbursements listed that may become payable by the purchaser on completion.

Price Information
* Guides are provided as an indication of each seller's minimum expectation. They are not necessarily figures which a property will sell for and may change at any time prior to the auction. Each property will be offered subject to a Reserve (a figure below which the Auctioneer cannot sell the property during the auction) which we expect will be set within the Guide Range or no more than 10% above a single figure Guide.

Additional Fees Information
Please be aware there may be additional fees payable on top of the final sale price. This includes and are not limited to administration charges and buyer's premium fees payable on exchange, and disbursements payable on completion. Please ensure you check the property information page for a list of any relevant additional fees as well as reading the legal pack for any disbursements.