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

"Abbey was very friendly and helpful"

- Sandra

"Would highly recommend Peter Anthony when selling your property."

- Gwen

"Very good estate agency"

- Junaid

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

- James

"The staff at Peter Anthony could not have been more helpful. The team are well led by Gill."

- Steve

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

- Richard

"Sold a property, and Gill was amazing throughout the process!"

- Rachel

"Abby was prompt to respond to inquiries and very pleasant"

- Christian