An interesting survey by Buy-to-Let lender Landbay, has shed more light on the changing HMO landlord demographic.
Just under 30% of landlords who took part in the survey owned an HMO (house in multiple occupation) property or portfolio. 72% of these landlords owned HMO properties through a limited company. Half of these HMO landlords said that they did not have another job and that they use their property or portfolio as their sole source of income.
In addition, despite the complexities of managing HMOs, the survey found that nearly half of the properties were self-managed by landlords. 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 survey results show continuing confidence in HMOs and that many investors are making a successful business from their properties. As these businesses grow into larger portfolios, landlords are also realising the benefits of having a specialist managing agent in place.
Despite proposed rental reforms and local authority licensing schemes, the market obviously remains resilient. With an ongoing housing shortage, demand is stronger than ever for decent and fairly managed house shares.
HMO landlords have also received a recent 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.
The survey highlights the ongoing strength and profitability of HMO investments, with many landlords now relying solely on their rental income. As demand for well-managed HMOs continues to rise, it’s clear that successful landlords are not just managing properties—they’re building thriving businesses. However, with proposed rental reforms and local authority schemes, it’s more important than ever to ensure your portfolio is managed effectively to maximise returns and stay compliant.
At The Property Lifeboat, we providing expert support to landlords looking to grow and protect their investments. Whether you’re self-managing a few properties or looking to expand your portfolio, we can help you navigate the complexities of HMO management. Get in touch with us today to discuss how we can help you achieve greater success with your properties in Kent.
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