North East leads for the highest HMO yields

There are big regional disparities for HMO landlords in the UK with Greater London boasting the highest average property value at £660,227.

Though landlords in the North East enjoy the highest average yield of 15.4%.

The property management and financial platform, Lendlord, says this inverse relationship between property values and yields presents investment opportunities.

Its first HMO data analysis report is based on data from 1,126 HMO properties and uncovers regional trends in property values, rental yields and market distribution.

HMO market remains a cornerstone

The firm’s co-founder and chief executive, Aviram Shahar, said: “The HMO market remains a cornerstone of the UK’s rental sector, offering significant opportunities for landlords and investors.

“However, maximising its potential requires clear, data-driven insights.”

He added: “This report highlights key trends and regional disparities, providing landlords and brokers with the information they need to make informed, strategic decisions.”

Highest annual rental income

The report also reveals that Greater London, despite dominating the market with 20.6% of all HMOs analysed, offers lower yields compared to the North East.

The South East stands out with the highest annual rental income at £46,041, making it an attractive option for landlords seeking a balance between capital value and rental returns.

Additional findings show that the average HMO yield across the UK in the final quarter of 2024 was 10.4%.