Gainsborough, a market town in Lincolnshire, sits on the River Trent. It’s not the first place you might think of for property investment, but it’s got a lot going for HMO investors. With affordable housing, solid yields, and a growing population, it’s worth a look. This blog breaks down why Gainsborough could be a smart move for your next HMO investment.
Population and Growth
Gainsborough’s population was 20,842 in the 2011 census, with estimates reaching 23,243 by 2019. The town is expected to grow to over 30,000 in the next two decades, driven by housing and economic development plans. This growth matters for HMO investors because more people mean more demand for rental properties, especially shared housing.
Young people aged 18 to 35, the typical HMO tenant, are drawn to Gainsborough for its low living costs and job opportunities. The town’s average age is around 38, so it’s got a youthful vibe. And with plans for new homes and jobs, the population is set to keep climbing, making it a good bet for long-term rental demand.
Housing Market Overview
Gainsborough’s housing market is affordable, which is music to an investor’s ears. The average property price over the last year was £152,073, with terraced houses at £102,757, semi-detached at £157,150, and detached at £250,388. These prices are low compared to national averages, letting you buy properties at a fraction of the cost of bigger cities.
Monthly rents are strong, averaging £525 for flats and £658 to £880 for houses, with 9.4% annual growth to May 2025. This translates to gross yields of 12% to 18% for HMOs, well above what you’d get in many other towns. Properties take about 18 weeks to sell, so you’ve got time to negotiate off-market deals, which is what we specialise in at hmosales.com.
Housing Stock and HMO Stats
There are roughly 10,000 properties in Gainsborough. Most are terraced and semi-detached houses, perfect for converting into HMOs. These older properties, often from the Victorian or Edwardian era, have the space and layout for multiple bedrooms and shared facilities. You’ll also find some modern estates and riverside flats, like those at Whitton’s Mill, which won planning awards.
Only six properties are licensed HMOs, with a few smaller, unlicensed ones around. This low number is a golden opportunity. With so few HMOs, competition is minimal, and demand is high, especially from young professionals and workers. Converting a terraced house into a five-bedroom HMO could see you pulling in £2,500 to £3,000 a month in rent, based on current rates.
But here’s the kicker: there’s no Article 4 restrictions when it comes to HMO conversions in Gainsborough. This means you don’t need planning permission to turn a house into a small HMO (up to six tenants). It keeps costs and hassle down, unlike in cities with tight rules. Just make sure you meet licensing and safety standards.
A Bit of History and Why People Move Here
Gainsborough’s story starts as a Saxon settlement, growing into a key spot under the Danes in the 9th to 11th centuries. It was briefly England’s capital in 1013 under Sweyn Forkbeard. Fast forward to the 19th century, and it became an industrial hub thanks to Marshall, Sons & Co., a boiler-maker founded in 1848. The town’s port on the River Trent made it a trade centre, handling corn and later foreign goods.
Today, people move here for affordability and lifestyle. House prices are a steal compared to nearby Lincoln or Sheffield, and you get a proper community feel. The town’s got history, like Gainsborough Old Hall, a medieval manor that pulls in tourists. Plus, the Lincolnshire Wolds, an Area of Outstanding Natural Beauty, is nearby for outdoor types.
Regeneration is breathing new life into the town, with projects like Marshall’s Yard, a retail complex, and riverside developments. These make Gainsborough more appealing to young renters who want shops, cafes, and a bit of buzz without city prices.
Local Economy and Employment
Gainsborough’s economy is diverse, with manufacturing, retail, and services leading the way. Historically, firms like Marshall’s shaped the town, and today, companies like Eminox, which makes exhaust systems, and Smiffy’s, a joke and novelty importer, keep industry alive. The town’s also got a growing logistics sector, thanks to its location near major roads like the A15 and A631.
Most people work in manufacturing, retail, or healthcare. The average wage is lower than the national figure, which keeps living costs down and makes HMOs attractive for young workers. These tenants, often on modest incomes, prefer shared housing to save money while still having a decent place to live.
For HMO investors, this mix of stable jobs and low costs is ideal. Tenants are likely to stick around, keeping voids low and cash flow steady.
Why Young People Love Gainsborough
Young adults aged 18 to 35 are the heart of the HMO market, and Gainsborough suits them well. Rent is affordable, with HMO rooms often costing £400 to £600 a month, leaving cash for other things. The town’s got enough going on to keep them happy—Marshall’s Yard has shops like M&S and Costa, and the Trinity Arts Centre hosts gigs and theatre.
The Riverside Walk is a chill spot for a stroll, and you might catch the Trent Aegir, a tidal bore that’s a bit of a spectacle. For sporty types, there’s Gainsborough Trinity F.C., rugby clubs, and cycling groups. Richmond Park, with its greenhouses and ancient oak, is a local hangout, though it’s known for the odd rowdy teen.
Transport links are decent too. The train station connects to Lincoln, Sheffield, and Doncaster, so commuting’s an option. For young people starting out, Gainsborough offers a balance of work, play, and low costs.
Student Market and Universities
Gainsborough itself doesn’t have universities, but it’s close to several. The University of Lincoln, 18 miles away, has over 15,000 students, with around 2,000 in postgraduate or part-time courses who might look for cheaper housing outside the city. Bishop Grosseteste University, also in Lincoln, adds another 2,200 students.
Students tend to live in Lincoln for the nightlife, but some choose Gainsborough for lower rents. A room in Lincoln might cost £500 to £700, while Gainsborough’s closer to £400. The train to Lincoln takes about 20 minutes, so it’s doable for lectures or nights out.
There’s also Gainsborough College, part of the Lincoln College Group, offering vocational courses. It’s small, with a few hundred students, but some need local housing. These students often work part-time in town, making HMOs a practical choice.
For investors, the student market isn’t huge, but it’s a nice bonus. You can market HMOs to a mix of students and young workers, keeping rooms filled year-round.
Hospitals and Staff
Healthcare is a big employer, and hospitals create HMO demand. John Coupland Hospital, on Ropery Road, is Gainsborough’s main facility. Built in 1913, it has 36 beds and focuses on community care. Exact staff numbers are hard to pin down, but small hospitals like this typically employ 100 to 200 people, including nurses, doctors, and support staff.
Nearby, Lincoln County Hospital, 18 miles away, is a major hub with over 600 beds and around 2,500 staff. Some workers live in Gainsborough to save on rent, commuting by car or train. Scunthorpe General Hospital, 16 miles north, has similar numbers and adds to the pool of healthcare tenants.
Nurses and junior doctors, often young and on shift patterns, are ideal HMO tenants. They need affordable, flexible housing near transport links. Gainsborough’s low rents and proximity to these hospitals make it a solid choice.
Local Development Plan
West Lindsey District Council has big plans for Gainsborough. The Central Lincolnshire Local Plan (2023-2040) aims to deliver 47% more homes, around 4,700 new properties, to support population growth. The plan focuses on sustainable urban extensions, with new housing estates planned south and east of the town.
The council’s also pushing for better transport, including rail upgrades to connect Gainsborough to the Humber Bank, Doncaster, and Sheffield. Improved roads like the A631 will ease commuting. These changes will make the town more attractive to workers and renters, boosting HMO demand.
The plan includes job creation, targeting 3,000 new roles in retail, leisure, and manufacturing. This aligns with the Greater Gainsborough Housing Zone, which has £18 million in public funding to speed up housing and economic growth. For investors, this means more tenants and rising property values over time.
Regeneration Projects
Gainsborough’s seeing serious regeneration. Marshall’s Yard, a retail and office complex, opened in 2007 and won awards for breathing life into the town centre. Whitton’s Mill flats, along the riverside, are another success, turning old warehouses into modern homes.
The latest project is a town centre revamp, with West Lindsey District Council and Muse Developments building a cinema, restaurants, and a public square. The riverside will get retail and leisure units, creating jobs and drawing visitors. These changes make Gainsborough livelier, which young tenants love.
Regeneration also means property prices could rise, giving investors capital growth alongside rental yields. Areas like the town centre and riverside are ones to watch for HMO conversions.
What This Means for HMO Investors
So, why buy an HMO in Gainsborough? First, the numbers stack up. Low property prices and high rents mean yields of 12% to 18%, better than most UK towns. With only six licensed HMOs, there’s little competition, so you can dominate the market.
Second, demand is strong. Young workers in manufacturing, retail, and healthcare need affordable housing, and Gainsborough’s got it. The growing population, driven by new homes and jobs, will keep tenants coming. No Article 4 restrictions make it easy to set up small HMOs, saving you time and money.
Third, the town’s on the up. Regeneration, like the cinema and riverside projects, is making Gainsborough more attractive. The local plan’s focus on housing and transport will boost property values. You’re not just getting rental income; you’re betting on future growth.
There’s a small catch—Gainsborough’s not a flashy city, and some areas feel run-down. But that’s changing fast, and the low entry cost makes it a low-risk play. Plus, our off-market deals at hmosales.com let you snap up properties before they hit Rightmove.
Final Thoughts
Gainsborough’s a hidden gem for HMO investors. Affordable houses, high yields, and a growing tenant base make it a no-brainer. Add in regeneration and no planning hurdles, and you’ve got a market ripe for the picking. Whether you’re new to HMOs or scaling up, Gainsborough deserves a spot on your radar. Get in touch with us at hmosales.com to find your next deal.
Note: All data is based on available sources up to May 2025, including ONS, Rightmove, and local council plans. Always do your own due diligence before investing.
