Shared living is growing in popularity, especially among professionals who see it as a cost-effective and communal way to live. Because of the consistency of renters and the low maintenance required, our HMO experts have recognised HMO properties as the most reliable option to earn a hands-off income.
What exactly are HMO properties?
Short for House in Multiple Occupation, an HMO is a residence occupied by three or more renters who form more than one household and share amenities such as a bathroom, kitchen, and toilet. In this context, a household is defined as a group of individuals living together or a single person living alone.
How had Covid-19 affected the HMO market?
In March 2020, the UK experiences the first Covid-19 lockdown, which had quite an effect on the HMO market. For example, property viewings were prohibited to restrict physical contact and the spread of the pandemic. Property viewings are essential as it’s difficult to see how any kind of a normal market can continue until the lockdown was lifted, with valuers and purchasers unable to see houses. Lockdown has damaged many HMO landlords’ personal and household income, putting their jobs or enterprises in jeopardy, just as it has the rest of the UK and the rest of the world, we can all surely agree with this.
However, since the lockdown has been lifted, the HMO market has been thriving, as viewings are now allowed, which makes it 10 times easier to tenant properties, therefore improving the occupancy rate.
Are HMOs still a good investment?
As many expected the market to crash during Covid-19, the unexpected happened and there was actually a huge uplift in the market , as those who had not intended to relocate found themselves in need of greater and more social space to live in. In addition, mortgage approvals reached their greatest level in nearly 13 years, with interest rates as low as 0.1% and the construction sector remained active. Finally, we saw a £15,000 increase in property prices and a 6.16% increase in market growth towards the end of the year and more!
With HMOs already being highly desired and affordable, with Covid-19, the community’s trend shifted toward even more cheap housing, making HMOs one of the most sought-after property investment options. As a result, we anticipate a significant rise in the number of professionals residing in HMOs.
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At Sourced Franchise, we are determined in helping you reach your property goals, regardless of your experience in real estate! We strongly believe that anyone with the right skillset and attitude can be successful in the property industry.
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