Blog Post

Investing in HMOs

TomS - Head Tom Simper Sep 25, 2023, 10:00 AM

Letting your property as an HMO (House in Multiple Occupancy) is a viable alternative to more traditional buy-to-let properties. Generally more profitable, HMOs provide multiple streams of income by letting out individual rooms at a higher rate than you would the entire property. This can also reduce the impact of void periods.

Average gross estimated yields of up to 7.9% are achievable in the North West, where student populations are high and demand for more afforable housing is strong.

Of the estimated half a million HMOs in England and Wales, by far the most (29%) are found in London. The scarcity principle applies, and places with the lowest number of HMOs such as Wales (4%) have strong average yields of 7.1%.

This clear demand for HMOs, coupled with attractive yields, provides a convincing argument for considering this method of letting. Source: #Dataloft Rental Market Analytics, Land Registry, Whitegates, DLUHC, StatsWales

Leave a comment
Newest on top Oldest on top
Load more comments
Thank you for the comment! Your comment must be approved first
comment-avatar

"If you need an Estate Agent who is going to really go the extra mile, Dewi is THAT person."

- James

"Sean was really lovely on our inspection. Quick, easy and efficient. Thank you!"

- Roberta

"nothing written"

- Nadeeka Edirisinghalage

"I was shown around a property by Abbey Bird, it was a lovely viewing"

- Sophia

"Friendly and helpful. No problems everything ran smoothly as expected and professionally."

- David

"Abbey was very friendly and helpful"

- Sandra

"As a tenant, this might be the best agency I've worked with so far."

- Jeddy

"Keep it up the good work. I thank you very much"

- Richard