HMO properties are helping youth accommodate to rising inflation, unemployment and, loss of control.  We’ve come a long way since the eighties and nineties and one way we have changed for the better is access to quality education. But with more access, the tuition and housing fees have also been marked up by universities. Student halls are significantly more expensive (find the stats) than they were in the early noughties.


It wasn’t always like this.

There has been an influx of young adult immigrant population for higher studies or a high-skilled workforce since the 2000s due in part to the Highly Skilled Migrant Programme (HSMP) that the government had in place till 2008. With rising young population concentrated in the cities they have looked for affordable accommodation that would give them the independence that doesn’t come with living with their parents or in student halls.

How HMO properties became the big solution?

It is common knowledge that major cities in the UK especially London is expensive even for UK natives. But as more students and young professionals spread across the country to study, rents have also increased in those areas. While one would want to live independently, their financial arrangements may not allow for such a thing to happen early on in their careers. This is where shared living or HMO properties brings a solution that is not only affordable but also offers amenities such as high-speed internet, furniture, TV, etc.

Why HMO properties are beneficial for a young professional?

HMOs can also be a wonderful place for young immigrants to meet new people in the city, acclimate to the new culture and, learn valuable lessons from living with housemates. Shared living is also easier on the pockets for a burgeoning career as the cost of rent and utilities can be split among the housemates. There are also various laws in place for the landlord of HMOs to safeguard the safety and rights of the tenants for example annual gas safety checks, electric checks every five years, fire safety measures, appropriate licencing, etc.

How HMO properties have impacted the uk property market?

As the student population rises, so has the demand for their accommodation. Landlords of HMO have the yield of 8-10% which is higher than the country’s average of 5% for single rent to rent accommodations. Tenants usually sign a lease of 12 months with their parents as guarantors which is a reassuring structure established to bring security for the landlords. With the promise of steady supply of rents, many investors are opting HMOs to cover for their mortgage while also making a decent profit every month.

While coronavirus has exposed some of the inadequacies of the HMO model during the lockdown, the SDLT holiday has proven to be lucrative for investors wanting to diversify and maximise their gain. HMOs are expected to bounce back as the lockdown is lifted and could mean a return of student population flocking back to cities to finish their degrees or moving for new jobs opportunities.

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