Half of HMO landlords use their property or portfolio as their sole source of income, research from buy-to-let lender Landbay has revealed.
This group of landlords don’t have another job and so use their property or portfolio as their sole source of income.
Some three quarters (72%) of landlords owned HMO properties through a limited company.
Rob Stanton, sales and distribution director at Landbay, said: “Our survey results show continuing confidence in HMOs. Despite proposed rental reforms and local authority licensing schemes, the market remains resilient. With an ongoing housing shortage, demand is stronger than ever for decent and fairly managed house shares.
“HMO landlords have received a boost from falling utility bills. This means higher net rental which can make it easier to borrow a greater amount against the property’s value. In addition, council tax banding for individual rooms in shared houses has been reversed so HMOs are classed as a single dwelling as before.
“As long as investors do their research thoroughly before making the leap, HMOs can give great returns.”
Nearly half of the properties were self-managed by landlords, a third of whom owned portfolios with over 20 properties.
Landbay said the reason for this more DIY approach could be that the most popular size of HMO portfolio was the smallest, between 4-10 properties, with 34% falling into that category.
The highest proportion of HMOs were in London and the South East (47%), followed by the East Midlands.
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