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 good and I felt she understood exactly what I was looking for"

- Alistair

"Positives: Quick sale"

- Andy

"Both very Knowledgeable about the all properties I was inquiring about"

- Joanne

"Sean is lovely every time he comes round to do an inspection on the house, really polite"

- Charlotte

"I would have no hesitation on recomending Gill and her team to manage a property or portfolio, in fact I think anyone would be mad to go anywhere else!"

- Barry

"It has always been prompt action on any issue raised and the feedback has been positive."

- Oketokun

"The experience was good"

- Bailey

"We’ve got nothing but good things to say about the team at Peter Anthony Liverpool"

- Jack