Demand rises for HMO properties

Mortgage lenders are reporting a rise in demand for HMO properties as the housing market starts to recover.


Demand for HMO properties appears to be rising amongst Landlords as the sector takes off again after a pause due to the coronavirus pandemic.

Mortgage lender Landbay have reported a rise in interest for mortgages in this sector. This increase in demand is leading to more specialist HMO loan options becoming available, as more lenders enter the market.  

Paul Brett of Lendbay said recently: “Demand for HMOs is growing from both tenants and landlords so this is definitely a market for brokers to take an interest in. Not only will HMO properties typically require larger mortgages resulting in higher proc fees for those placing the mortgage, most people investing in HMOs will be professional landlords, which means they are likely to be business minded and open to your advice.”

‘While HMOs are increasingly popular with young professionals, they are also a common property type for students. It offers more affordable accommodation, and the social aspect of shared facilities and space. Even with the current pandemic, many people are happy to be “locked down” with their fellow housemates, rather than live alone’ says Brett.

Overall in the UK Housing Market, sales are continuing to climb, , with the sector seeing particular interest from investors at the moment. According to data published by Hamptons International, rental prices also rose in October for the first time since the coronavirus pandemic began. 

Tenant demand is high and as more people choose to rent and HMO’s continue to provide a good option for young professionals and students alike. 

Mortgage lender ‘Foundation’ also reported a 46% increase in applications from landlords with three or less properties as well as a 23% increase in applications for small or standard HMO properties.

As a tangible and profitable asset, property always proves a popular investment, even in a changing market and HMO’s appear to be no different. 

Demand rises for HMO properties HMO Management Agency