October 5, 2022

The mixed worth of the nation’s HMO market is estimated to be virtually £26bn in present market circumstances

At present, there are some 55,849 HMOs operational throughout the rental market in England. With the common HMO value 464,546 within the present market, that’s a complete market worth of £25.944bn.

With 13,528 HMOs present in London alone, the capital is house to the best proportion of HMO rental properties in England. It’s additionally house to the best common HMO home worth at £826,209 and, in consequence, the best whole HMO market worth of all areas at a staggering £11.2bn.

The East Midlands is the nation’s second HMO hotspot, with the ten,737 HMOs positioned within the area accounting for 19% of the nation’s whole inventory. Nevertheless, with a mean home worth of £274,126, the area is house to a complete market worth of £2.9bn – simply the fourth largest within the nation.

It’s the South West and South East that sit second and third in the case of whole HMO market worth, with HMO inventory in every area sitting at £3.8bn and £3.3bn respectively.

The North East is house to the bottom stage of HMO properties, with 715 accounting for simply 1.3% of the nationwide whole. With a mean HMO home worth of £263,024, it’s additionally house to probably the most reasonably priced HMO price ticket.

Even nonetheless, the full market worth of the area’s HMO portfolio nonetheless sits at £118m.

Founding director of Revolution Brokers, Almas Uddin mentioned, “We’ve now began to see the HMO sector come beneath the identical scrutiny as the broader buy-to-let area in the case of a raft of recent guidelines and laws designed to enhance tenant welfare.

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“Whereas that is, in fact, a step in the suitable route, it means extra money and time spent by HMO suppliers to make sure they’re working above board.

“The concern is that these extra necessities might deter HMO funding and cut back the extent of appropriate HMOs which are accessible, leaving tenants with no selection however to lease from those that have been already offering below-par lodging and can little question proceed to take action.

“The excellent news is that up to now, this doesn’t appear to be the case and the nation’s HMO portfolio not solely stays strong, however is value an unbelievable sum within the present market.”