A mortgage broker claims the south east of England offers investment opportunities for landlords wanting to put money into HMOs.
Revolution Brokers says its analysis of homes in multiple occupation shows that almost a quarter of all HMOs in England are located in London but that surrounding areas of the south east - plus the East Midlands - offer opportunities for investors when it comes to stock listed.
There’s currently just shy of 56,000 HMOs registered across England. 13,528 of these are found within the capital. The East Midlands isn’t far behind, where a total of 10,737 HMOs sees the region account for 19 per cent of the national total.
When it comes to current investment opportunities there are some 886 HMOs currently listed for sale across England. This time it’s the South East that accounts for almost a quarter of stock, with another 125 HMOs up for sale across the East Midlands, equating to 14 per cent.
The brokerage director, Almas Uddin, says: “London’s high level of stock has been driven by the consistent demand for multiple occupancy rental properties from tenants and while initial investment costs may be higher than elsewhere across the country, stronger wage levels allow for a much stronger return where rental income is concerned.
“As the nation’s capital, there is also a revolving door of tenants, both domestic and international, moving to London to live and work. As a result, void periods are also far lower which again helps to maximise returns.”
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I know that many ' friends' on here operate HNOs and I'm sure they do very well with them, but oh NO not for me thanks
Agree Andrew. I wouldn't touch HMO's with a barge pole.
Daniela, its not as if we have a choice its imposed on us. 90% of mine are licensed HMO’s some re-done up to 4 times but not by choice but a legal requirement not that my letting clients are any difference to what they always were so no Benefit there. I don’t let rooms just single let’s jointly & several same as it always was, the difference is you have to spend thousands of £’s per property on compliance work, + licensing fees now £1300.00 + £50
per room on top of the standard fee I think Its for fun can’t think what else all those £50’s could be for, it also makes you liable for huge penalties, fines and confiscation Orders, so those are the Benefits you’ll be pleased to know.
On the other hand ✋🏿 🖐🏻 its nothing to do with the property you are letting but the type of persons you let to is the deciding factor as to whether you’ll need a license or not.
(no need to tell you what type of person exempts you) I hope that puts your mind at rest.
Landlords never rest or retire not allowed.
It's imposed on you? OK, fair enough, Michael. Thank God I've got a choice.
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