{"id":1079,"date":"2016-09-16T09:08:22","date_gmt":"2016-09-16T08:08:22","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=1079"},"modified":"2023-09-26T13:53:14","modified_gmt":"2023-09-26T12:53:14","slug":"hmo-property-market-evolving-according-new-report","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/2016\/09\/16\/hmo-property-market-evolving-according-new-report\/","title":{"rendered":"HMO property market evolving according to new report"},"content":{"rendered":"

One of the most important and exciting new sectors in the UK property market, Housing of Multiple Occupancy<\/a> (HMO), is evolving into a mainstream property investment model, according to a new report from specialist commercial lender Shawbrook Bank.<\/p>\n

A combination of financial pressures for those who have yet to get on the housing ladder, plus a shift in how people want to live in the early stages of their professional careers mean this type of property has grown hugely in popularity for renters. The report states that \u2018…with a generation of young professionals focused more on renting<\/a>, due in part to house prices but also due to the desirability of higher levels of disposable income, shared accommodation is highly appealing for this demographic for both financial and social reasons.\u2019<\/span><\/p>\n

Karen Bennett from Shawbrook Bank says that \u201clandlords talk about creating a community of young professionals who actually want to co-habitate because it\u2019s more sociable and enjoyable.\u201d<\/span><\/p>\n

The report quotes a Spareroom.co.uk survey of 10,000 tenants in shared accommodation which shows more than 70 per cent are aged under 30 years, while more than half are not in a relationship.<\/span><\/p>\n

The market for HMOs has been increasingly popular among landlords too, with yields beating other types of buy-to-let investments. David Whittaker of Mortgages for Business said, \u201cOur Complex Buy-to-Let Index has been tracking gross rental yields across a variety of property types for the<\/span><\/p>\n

past five years. In that time HMOs have consistently outperformed both vanilla buy-to-lets and blocks of flats owned on a single freehold title yielding an average of 10% per annum compared to 6% and 7% respectively.\u201d<\/span><\/p>\n

Three types of HMO landlord are identified – the \u2018accidental\u2019 HMO landlord who rents out a spare room in their home, regular buy-to-let landlords <\/a>who have bought a large property and then decided to it is well-suited to HMO letting, and \u2018active\u2019 HMO investors who look specifically for properties suitable for HMO letting, and who are prepared to reconfigure whole properties if necessary.<\/span><\/p>\n

RICS report suggests post-Brexit fears may have been overestimated<\/a><\/p><\/blockquote>\n