Bangor is a hidden gem for HMO investors with good levels of demand for both students and professionals and very strong yield returns. With a permanent population of 18,000, swelled by over 10,000 Bangor University students, demand for affordable rental accommodation far outstrips supply, with only around 1,800 dwellings available. The city’s Article 4 restrictions, covering all of Bangor, require planning permission for new HMOs, limiting supply and protecting yields for existing properties. Investors can expect rental yields of 13% gross from well-located properties, particularly in Upper Bangor and Hirael, driven by a steady tenant base of students and young professionals aged 18-35.

The local economy, anchored by Bangor University and Ysbyty Gwynedd hospital, supports consistent demand for HMOs. The university employs 650 teaching staff and contributes £178 million annually, while the hospital employs around 3,500, including many junior doctors and nurses who fit the HMO tenant profile. Regeneration projects, like the Pontio Arts Centre and the £20 million M-Sparc Science Park across the Menai Bridge, signal growth and attract more young residents. For investors, properties near the university or hospital are ideal, offering walkability and high rental demand, though compliance with strict HMO licensing and safety standards is essential.

Bangor’s appeal lies in its affordability and constrained housing stock, making it a low-entry-cost market compared to southern England. Properties in Upper Bangor or Penrhosgarnedd, close to key amenities, are particularly sought-after. While Article 4 rules add regulatory hurdles, they create a barrier to entry, enhancing the value of licensed HMOs. Investors can also explore nearby Llanfair PG, where no Article 4 restrictions apply, for overspill opportunities. With strong demand, stable yields, and ongoing development, Bangor presents a strong opportunity for good yields today with potential for long term capital growth.