A photo of HMO properties in the United Kingdom

HMO investment property for sale

HMOs: A high-yielding option for property investors

Houses in multiple occupation (HMOs) are among the UK’s most lucrative investment options, typically offering higher rental yields than traditional buy-to-lets. Their multi-let structure maximises income and reduces the risk of void period risks. With high population growth and rising demand for affordable housing, shared accommodation remains a resilient sector for investment. 

BuyAssociation is an award-winning consultancy that connects investors with top-quality, high-yielding HMOs that offer a return on investment of up to 15% from leading UK developers. We provide exclusive opportunities across the UK, along with expert guidance every step of the way, ensuring a hassle-free HMO investment process. 

Contact us today to discuss your goals and access these unique opportunities.

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What is an HMO property?

An HMO property, or house in multiple occupation, is a rental property shared by three or more tenants who are from separate households. The tenants have their own bedroom but share communal facilities such as kitchens and bathrooms. 

HMOs can vary from smaller properties with three tenants to larger properties housing five or more households. Tenants sign individual agreements to live there, each with private rooms and shared communal spaces.

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How to invest in HMO property

Investing in HMO properties involves several key steps:

  1. Research the market: Focus on high-demand areas, such as university cities or locations close to industrial parks, where tenant interest and rental yields are strong.
  2. Understand regulations: HMOs require compliance with licensing, safety standards, and planning rules. Check local council guidelines to ensure your property meets all the criteria.
  3. Secure financing: HMO mortgages differ from standard buy-to-let loans, often requiring larger deposits. Speak to an expert to find out how much you could be eligible to borrow.
  4. Find the right property: Look for properties that meet HMO standards, such as sufficient communal space and necessary safety features.
  5. Work with experts: Partnering with specialists like BuyAssociation simplifies the process. Our team excels in sourcing high-yielding HMOs in prime locations, and we’ll help you with aspects such as planning permissions, licensing, and paperwork.
  6. Manage tenants effectively: Efficient management is essential for HMOs. A property manager can oversee tenant sourcing, rent collection, and maintenance.

By following these steps, with expert guidance, investors can unlock the full potential of an HMO investment property. BuyAssociation offers comprehensive support for a seamless, stress-free HMO property investment journey.

HMO properties

Invest in an HMO with BuyAssociation

At BuyAssociation, we prioritise HMO property investment opportunities in prime locations to ensure maximum capital growth and rental yield potential for our investors.

Guided by market insights, we target high-demand locations popular with young professionals and students, ensuring high HMO occupancy rates and steady rental income that surpasses the average buy-to-let.

We recognise that rental demand is particularly strong across urban areas, and our team can source high-quality HMO properties in emerging areas with strong growth potential, securing exclusive (often discounted) opportunities through partnerships with developers.

Get in touch with BuyAssociation today to find out more about our HMO investment opportunities.

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Advantages of investing in HMO property

  • Reduced risk of void periods

    HMO properties tend to have fewer void periods than traditional buy-to-lets. With multiple tenants contributing, a single missed payment or vacant room has less impact on total income. This diversification ensures greater financial stability, even in fluctuating markets.

  • Higher return on investment

    HMO rental yields can vary greatly depending on location, property quality and number of tenants, but research shows they can generate anywhere between 7-11%. This tends to be significantly higher than an average buy-to-let.

    Investors partnering with BuyAssociation can achieve even higher yields, up to as much as 15%. This substantial income potential makes HMOs one of the most attractive options for property investment in the UK.

  • Generate passive income

    HMO properties are a reliable source of passive income due to their higher rental yields and stable occupancy rates. The majority of HMO investors opt for a hands-off investment option, leaving their time free to focus on other opportunities. By working with BuyAssociation, investors can maintain full occupancy and benefit from effective management.

  • Maximise opportunities created by strong rental demand

    UK rental demand is extremely high, and HMOs help to address the shortage of available homes for tenants. Increasingly, tenants are looking for more affordable and flexible accommodation, with large numbers of young professionals seeking high-quality flat shares in well-connected locations.

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Licensing and regulations for HMO landlords

Unlike most buy-to-let property investments, many HMOs are subject to licensing requirements and additional regulations.

  • Mandatory HMO licensing: Required for large HMOs, defined as properties with 5 or more households sharing kitchen or bathroom facilities. Smaller HMOs may be exempt unless local authority regulations specify otherwise.
  • Additional or selective HMO licensing: Local authorities may impose additional licences for properties such as student houses near universities or converted flats.
  • Compliance tools: Determining if a property qualifies as an HMO can be complex. Use available tools or seek professional guidance to confirm compliance. 

The Housing Act 2004 introduced these measures to enhance tenant protection, reduce overcrowding, and enforce stricter fire safety standards. Understanding these regulations ensures both tenant safety and landlord compliance.

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