Buy-to-let investors favouring HMO’s

A new investigation has suggested that the most popular form of investment properties this year will be houses in multiple occupation (HMO’s).

Shawbrook Bank looked at the investment expectations of its property investor clients and from this, assessed the wider demographic for 2016.

The findings from the report indicate that one third of investors questioned saw HMO’s as their preferred form of property investment. This is a marked rise from July of 2015, where only 16% of investors noted HMO’s as their choice of purchase.

Next on the desired property list for investors was terraced housing amounting for 28% of all would-be purchasers. Flats and maisonettes came in as the third most popular choice of homes requiring landlord insurance with 22%.

Buy-to-let investors favouring HMO's

Buy-to-let investors favouring HMO’s

Karen Bennett, sales and marketing director of commercial mortgages at Shawbrook acknowledged that there has been, ‘a surge of interest in HMO’s over the past year.’ She also observes, ‘this asset class has undergone significant change over the past decade with some very clear tenant and investor profiles emerging to bring some real quality to the sector.’[1]

Bennett also said, ‘whilst the high yields make for an attractive investment, caution must be taken with regard to planning and licensing requirements.’[1]

Are you currently and existing landlord or agent of a HMO? Or are you looking to make your first purchase? If you haven’t already, make sure you take out your landlords insurance with Just Landlords.

[1] https://www.landlordtoday.co.uk/breaking-news/2016/3/investors-favour-hmos-in-2016

 

 

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