Are HMO’s trending in 2023?
HMO is an abbreviated term for ‘House in Multiple Occupation’, specifically it is a house or flat shared by a number of tenants who rent their rooms and shared communal space (e.g., kitchen, living area and/or bathroom) on an individual basis. A small HMO would be classified as a property with up to three tenants, and a large HMO would have four or more tenants. Larger scale HMO’s attract higher legal standards and obligations such as the requirement of a license from the local council for which landlords must meet certain criteria. Examples of these criteria include stringent regulation on bedroom sizes, formalized rental agreements and possible need to fire doors (Somerset Council, 2023).
In line with the recent cost of living crisis we have seen a dramatic increase in demand for HMOs, as well as an increasingly large number of landlords deciding to venture into this form of investment. Subsequently, we are now pleased to offer a fully managed product for HMOs that can be quoted for on a case-by-case basis.
Research conducted by the Buy Association Group (2022) has more specifically highlighted the demand for high-end HMOs featuring bigger bedrooms, high speed internet and good quality furnishings. In the past it was typical that the target tenant type for regular HMO’s would be university students, usually sharing properties with their peers to reduce the cost of their university lives. However, naturally with the increase in demand research has shown a rise in interest from young professionals as well as single, older, and more affluent tenants (Buy Association Group, 2022).
If you are thinking about investing in a HMO and are struggling to keep up to date with current regulations or would like a no obligation quote, please do get in touch!
Buy Association Group (2022), High-end HMOs are in great demand as tenant priorities change. Available at: High-end HMOs in great demand as tenant priorities change (buyassociationgroup.com) [Accessed: 25 July 2023]
Somerset Council (2023), HMO Licensing. Available at: HMO Licensing (somerset.gov.uk) [Accessed: 25 July 2023]