0:01 AM, 17th April 2025, About 2 months ago
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Nearly half of tenants in Houses in Multiple Occupation (HMOs) are prepared to pay up to 10% extra in rent to live with housemates who share their interests and lifestyles.
The findings from COHO, an HMO management platform, show that shared houses remain a popular choice.
It says that with average monthly rents climbing by 8.1% over the past year to £1,338, it’s no wonder that 57.5% of tenants say affordability is a big plus.
The firm’s founder, Vann Vogstad, said: “Shared living is an age-old part of the rental market, but in more recent years it has been undergoing a significant evolution driven by changing tenant expectations and priorities.
“While affordability was once considered to be the only motivating factor among renters opting for HMOs, it is now increasingly common for people to seek out a shared house as a lifestyle choice, eager to take advantage of the sociability that this way of living provides.”
He added: “It’s important for the sector to recognise this shift because it presents a real opportunity for landlords.
“In order to have a good social experience when living in a shared house, it’s vital that you get along with your housemates, yet it remains far too common for tenants to have little control or insight over this compatibility before moving in because they’re not given a good enough opportunity to understand the personalities, interests and lifestyles of the people they’re agreeing to live with.”
Beyond financial benefits, the social appeal of HMOs is gaining traction and the survey found that 48.6% of respondents value the sociable nature of shared living.
Tenants ranked this as the second most significant benefit.
Additionally, 43% noted that HMOs are ideal for those relocating to unfamiliar cities, as they facilitate new social connections.
The survey also found that tenants would pay a rental premium of up to 10% to ensure compatibility with their housemates.
While 27% prioritised lower costs over like-minded cohabitants, a substantial 47.2% expressed willingness to pay more for a harmonious house share.
Also, 66% of respondents emphasised the importance of knowing their housemates’ personalities before moving in, with 40% giving this factor the highest priority.
Nearly 40% of participants also indicated they would be more enthusiastic about moving into a shared property if assured of housemate compatibility.
Mr Vogstad said: “HMO landlords who can provide their existing and prospective tenants with a good level of insight into the people they’ll be living with have a better chance of creating a relaxed, harmonious vibe in the house — which is great for tenants and, let’s be honest, good for business too.
“Not only are you going to reduce tenant churn and, therefore, void periods, but as our survey reveals, you’re also creating the opportunity to charge a premium on your rent simply for giving your tenants the best chance of living with people they like.”
