Buying 5-bed HMO for son in University?
My son is heading to University in September and we’re looking at helping him buy a HMO in his own name.
We’re looking at options for a five-bedroom HMO. He will take one room, rent out the others (around £80 a week each), and likely claim the rent-a-room allowance.
We are currently trying to make sure that he’ll be able to transfer the HMO license into his name, but we are not clear on what the CGT position will be when he comes to sell.
If there is a potential liability then we need to think ahead as to how to limit this.
We are also interested in any comments from anyone having done the same thing with their kids.
Many thanks
Richard
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Member Since November 2022 - Comments: 10
12:23 PM, 3rd January 2026, About 3 months ago
I thought about this when my daughter went to University and I decided to buy a property near me and manage it myself. Then the income would fund her accommodation away.
It’s a nightmare to put your inexperienced child in a position to get rent out of her friends and not friends. Repairs need a close eye in a student house. It doesn’t have to be an HMO if they are paying on the same contract. A group of friends.
I stopped when the market dried up as students want to be able to get out of bed to lectures as quickly as possible.
There are many problems with your child taking this on
1. Rent collection. Friend says I’ll pay next month, then leaves.
2. Repairs, contractors needed for all jobs, many you can do yourself.
3. Your child fails course or moves on to another college.
4. CGT is the least problem at the moment. If your child moves away the house gathers CGT. If your child wants to buy his/her own house elsewhere then extra 3% tax for 2nd home.