{"id":5025797,"date":"2019-09-13T14:00:33","date_gmt":"2019-09-13T13:00:33","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=5025797"},"modified":"2019-09-13T14:00:33","modified_gmt":"2019-09-13T13:00:33","slug":"buy-to-let-landlords-favouring-hmos-for-higher-yields","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-hk\/2019\/09\/13\/buy-to-let-landlords-favouring-hmos-for-higher-yields\/","title":{"rendered":"Buy-to-let landlords favouring HMOs for higher yields\u00a0"},"content":{"rendered":"

Opting for a house in multiple occupation (HMO) can bring in better yields for landlords than traditional lets, and many are factoring this into their future plans.<\/strong><\/p>\n

A landlord survey by Precise Mortgages has revealed that over a fifth of today’s landlords are seeking to add an HMO to their property portfolio. According to the data, only 8% of HMO landlords are planning to sell, compared to 40% of landlords planning to offload terraced properties from their portfolios.<\/p>\n

HMO properties have become more lucrative than standard single let rental properties, particularly in UK cities<\/a> with a significant student and young professional population. Many landlords have been hit by the tax changes of the past few years including the 3% stamp duty<\/a> surcharge and Section 24 tax relief changes, so it\u2019s no surprise that landlords are attracted to HMOs, where the average rental yield for April-June this year was 6.3%, as opposed to the market average of 5.5%.<\/p>\n

Rebalancing portfolios<\/h4>\n

\u201cHMOs are an attractive option for professional landlords looking to maximise yields at a time of market uncertainty,\u201d said Alan Cleary, managing director of Precise Mortgages. \u201cThe expansion of the HMO sector underlines how experienced landlords are rebalancing their portfolios.”<\/p>\n

The expanding HMO sector is evidence that landlords are rebalancing their portfolios. Not only can a well-managed HMO property deliver better yields, but it also comes with less risk, as multiple tenants mean less of a financial impact if one decides to leave.<\/p>\n

Getting the most out of an HMO<\/h4>\n

The highest average yields among landlords was reported in the north-west<\/a> at 5.9%, with cities such as Manchester, Liverpool, Preston and Bolton offering great returns at relatively lower price points than the pricier south of the country.<\/p>\n

While they can be slightly more complicated to run, with licensing requirements and minimum room sizes being brought in in recent years, they can be a great option in university towns and other student heavy areas as young professionals and graduates continue to opt for shared houses as a way of saving money while living in their first choice of area.<\/p>\n

To read more about the pros and cons of HMOs, as well as additional factors to bear in mind when investing in one, read our guide<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Opting for a house in multiple occupation (HMO) can bring in better yields for landlords than traditional lets, and many are factoring this into their future plans. A landlord survey by Precise Mortgages has revealed that over a fifth of today’s landlords are seeking to add an HMO to their property portfolio. According to the… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":18101,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,6],"tags":[143,15],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/5025797"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/comments?post=5025797"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/5025797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media\/18101"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media?parent=5025797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/categories?post=5025797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/tags?post=5025797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}