HMOs in the spotlight with index of yields, costs and share

The highest yields from HMOs are found in the north east of England according to a new index produced by a financial platform.

The highest average HMO property value is unsurprisingly in Greater London, at £660,227, while the average highest annual rental income is in south east England, at £46,041.

Average HMO yield across the UK is 10.4% and the regional price-to-rent ratio ranges from 2.7 years (in the North East) to 6.5 years (Greater London), with an average of 4.2 years.

The data comes from Lendlord’s inaugural HMO Data Analysis Report, relating to the HMO market for Q4 2024 and drawing on data from 1,126 HMO properties.

Key trends include an inverse correlation between property values and yields, demonstrating opportunities for investors to maximise returns in regions with lower property prices but higher yields.

The report sheds light on the stark contrasts between regions. Read the full article at Landlord Today