Has your client considered HMOs to maximise the return on their buy-to-let investment?
With HMO properties having the potential to generate higher rental yields and a lower risk of rental voids than a traditional single-let property, it’s easy to see why so many landlords are choosing to invest in HMOs.
The demand for HMO is increasing.
Demand for HMOs will likely remain high as the UK’s population grows and demand for homes outstrips available stock. The Office for National Statistics reported that UK’s population grew by 284,000 in 2020 (up 0.4% from 2019).
Many people who have a need or desire to live in city centres can simply not afford anything larger than a room in a shared house. HMO accommodation is the only option for them, and the increase in demand has been the main driver in this market.
According to research from Spareroom.co.uk, only 31% of adults in the UK living in shared accommodation could afford to rent on their own if they wanted, and only 12% could afford to buy a property.
Renting properties in London takes up around 50% of tenants’ monthly income, which is why sharing has been a much more viable option, with many younger people preferring the flexibility of shared accommodation.
Accessing finance to expand
The opportunity is there, and if you need finance, we can help.
If you already have more than eight rooms in your HMO property but still have the space to extend, you may have problems getting applications approved by many lenders. The high street won’t generally lend on an HMO property with over eight rooms.
Specialist finance distributors such as Aria Finance can secure funding to allow your properties to be extended and converted into an HMO. We have access to a pool of specialist lenders that do not have a limit on HMO rooms, allowing you to get the most out of the space you create.
Get in touch with the team at Aria Finance to discuss finance options for your clients HMOs.