Rental income soaring as HMOs become the preferred asset class

Rental income soaring as HMOs become the preferred asset class

14:20 PM, 15th February 2017, About 5 years ago

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Rental income soaring as HMOs become the preferred asset class for investors, landlords, and with supply and affordability more important than ever, tenants too.

In September 2016, Shawbrook Bank claimed that the Houses of Multiple Occupancy (HMO) market was set to see immediate substantial investment and growth, based on primary research identifying that 53% of property investors had HMOs in their sights.

Today, a record number of buy-to-let owners are now looking to convert their properties to HMOs, in order to increase rental income as tax increases take their toll, Roma Finance reports.

Shawbrook stated that 72% of investors cited a significantly higher yield as the main attraction, followed by the potential for capital growth. Recent research also identifies a much greater opportunity to rent more rooms in more cities with higher populations of students and young professionals.

Investors are now looking at high-specification HMO developments to maximise returns from rental income, taking a huge leap from the yield usually earned from regular buy-to-let investments.

High-end HMOs from BuyAssociation

Teaming up with some of the UK’s top developers, BuyAssociation bring top-end, high-specification properties to the market, that promise high rental income and an assured minimum 8% net yield.

Here’s what you can expect from BuyAssociation HMOs:

  • Direct from the developer.
  • Purchase price: £480,000 – £1,000,000
  • Rental income: £56,160 – £109,200 p.a.
  • Optional assured first year rental at 8%
  • Hands off professional maintenance and management options available
  • Developer finance options available

Discover current HMO opportunities

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