That’s where our end-to-end HMO solutions come in. We provide turnkey HMOs tailored for social housing providers, handling every step of the process so you can focus on providing safe, high-quality homes for tenants.

Our End-to-End HMO Service

We provide a complete, turnkey solution designed specifically for social housing providers:

1. Property Sourcing

We identify HMOs in strategic locations suitable for social housing needs, ensuring high tenant demand and compliance potential.

2. Acquisition

We purchase properties on your behalf, saving time and reducing risk while ensuring best value investments.

3. Refurbishment

All HMOs are renovated to meet HMO licensing standards, fire safety regulations, and tenant comfort expectations.

4. Ongoing Maintenance

Our team and partners manages property upkeep, guaranteeing long-term compliance, tenant satisfaction, and minimal operational burden for your organisation.

This approach ensures you receive ready-to-let, compliant HMOs without handling procurement, refurbishment, or management in-house.

Supporting Social Housing Goals

Our HMOs are designed to:

• House multiple tenants efficiently, maximising available space
• Provide safe, compliant accommodation for vulnerable populations
• Align with council and housing association objectives for supported housing, emergency housing, or affordable accommodation

Outsourcing HMO sourcing and management to us allows your organisation to increase housing capacity without adding internal workload.

Who Benefits Most From Our Services?

Our turnkey HMO solutions are ideal for:

• Housing Associations / Registered Providers seeking additional HMO capacity
• Councils in need of emergency or supported housing solutions
• Outsourced social housing contractors such as Serco, Mears, or Clearsprings
• Charities and non-profit housing providers requiring reliable, compliant tenant accommodation

Whether your organisation wants to lease or purchase HMOs, we provide quality, compliance, and efficiency from start to finish.

Why Choose Our HMO Services?

Partnering with us offers:

• Expertise in HMO acquisition, refurbishment, and management
• Fully compliant HMOs with HMO licences, fire safety certificates, and electrical compliance
• Flexible, tailored solutions for your social housing needs
• Dedicated support to maintain tenant satisfaction and property longevity

We deliver turnkey HMO solutions that save time, reduce risk, and provide value for housing providers.

Get Started Today

If your organisation is looking for compliant, ready-to-let HMOs without the hassle of sourcing, refurbishment, or management, we can help.

📞 Book a Consultation – Let’s create your next HMO project together.

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Barrow in Furness: Defence Industry Driving Local Housing Needs

As the UK’s centre for submarine construction, Barrow in Furness hosts BAE Systems’ £25 billion Dreadnought project—a long-term initiative employing thousands of skilled workers. This has increased demand for quality housing near workplaces, putting pressure on the existing rental market.

For investors, property Barrow in Furness offers a promising avenue to meet this growing need with the right type of accommodation.

(Source: BAE Systems)

Why HMOs Are the Perfect Solution in Barrow

Houses in Multiple Occupation provide an effective way to cater to the large workforce seeking flexible and affordable living arrangements. HMOs allow multiple tenants to rent individual rooms, sharing common spaces—a model that suits many professionals moving to Barrow.

(Source: BBC)

The benefits of focusing on HMOs here include:

Local Housing Shortages Increase Demand for Barrow Property

With over 10,000 new skilled jobs expected in the area, the supply of private rental homes is struggling to keep up. Many incoming workers seek affordable, convenient accommodation, making HMOs an attractive housing option.

This shortage means property Barrow in Furness — especially HMOs — is a market ripe with potential for investors who want reliable income and strong growth.

(Source: BBC)

Advantages of Investing in HMOs in Barrow in Furness

Investing in HMO properties comes with clear advantages:

• Maximised rental income: Letting rooms individually generates higher combined rent than single-let properties.
• Lower vacancy risk: The steady tenant demand keeps void periods to a minimum.
• Strong tenant diversity: The local economy’s range of industries supports a broad tenant base.
• Long-term stability: Ongoing major projects underpin lasting rental demand.

What Makes Barrow in Furness Special for HMO Investment?

Barrow’s strong economic foundation, anchored by high-value defence contracts, provides a secure tenant pool. Additionally, the town’s coastal location and community atmosphere attract professionals who seek a balanced lifestyle.

Investing in property Barrow in Furness means tapping into a market where demand is high, and housing supply remains limited.

Our Recent HMO transformation at Barrow-in-Furness – Cameron Street

4 bedrooms, 4 En-suite bathrooms and Communal Kitchen/Dining room

Starting Your HMO Investment Journey in Barrow

New investors should focus on:

• Understanding Barrow’s HMO licensing and safety requirements
• Partnering with experienced refurbishment and property management professionals
• Choosing properties close to key employers like BAE Systems
• Offering well-maintained, flexible accommodation appealing to professionals

Interested in HMO Property Investment in Barrow in Furness?

If you want to explore this exciting market, we’re here to help. Book your free consultation through our Calendly link. To learn more about our expertise and services, visit our Home Page.

References

• Barrow Borough Council — Barrow Borough Council
• UK Ministry of Defence — Ministry of Defence – GOV.UK
• BAE Systems Dreadnought Programme – Our Maritime Business

The post Why Investing in HMO Property in Barrow in Furness Makes Financial Sense in 2025 appeared first on HMO Property Designs.

Co-living is not new in the UK, but as more developments are in the planning across the country and the world, the co-living lifestyle is here to stay.

Adult dorms, as they are also known in America, are so popular they have a waiting list! Manchester in the Northwest already have many well established co-living developments and the council have reportedly given the green light for more, including right next to Piccadilly station in the heart of the city. Many major cities in the UK have plans for co-living developments.

A simpler way to live

Co-living buildings provide a less stressed lifestyle in comparison to traditional renting. There’s no landlord to deal with, no handyman to have to find, there’s one included because it’s all-inclusive. There are no agents’ fees and no hidden extras. You can simply move straight into bright, comfortable and stylish accommodation with little else to consider other than enjoying the company of your friends or getting to know the other residents better and becoming friends.

These co-living spaces provide ensuite rooms and often a spare external communal bathroom, a large communal living area and a kitchen which are sometimes combined to make one large multi-functional communal space for all the house share residents. Everything is included in the rent, so there are no bills to pay and all the usual mundane tasks of sorting out suppliers and dealing with the council do not exist which is why co-living developments are now so popular across the UK and worldwide.

A family of friends

Moving home for the first time often comes at a big cost, financial and emotional. Purchasing all the new things for a flat can be expensive and while leaving home can feel exciting, it can often come with feelings of uncertainty and vulnerability. Co-living spaces provide all the necessities for living there, from beds to cheese graters, so there’s no need to payout. When leaving home to move into a shared living development, you join a ready-made community of people and therefore minimise any concerns. Professionals and students alike can find a home and security living in a multi-let property and use it as a launchpad to start their life.

Not just for young adults

While this type of residential living does appeal to the young professional market and those just embarking on their career, many mid-life professionals can also see the appeal, especially if they have experienced loneliness or have had enough of dealing with the landlord one too many times and want everything under one roof for a simpler lifestyle.

The sense of community and belonging is appealing for any age adult wanting to live in a high-quality houseshare, especially when the co-living developments are in excellent locations near to major employment areas, universities, hospitals with good travel links and local retail too.

Are house shares a good idea?

The plus side to smaller coliving developments with only 4 or 5 bedrooms is the private rooms tend to be a comfortable size and are far more spacious than the rooms you can expect to find in a large tower block style multi-let development. If more breathing space is important to you and a smaller community appeals, then a house share is certainly a good idea. Would you try co-living?

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An HMO property investment is widely recognised as more profitable. Investing in HMOs commands higher rental yields and, depending on the structure of the investment can be a way to invest in property with little demand on the owner’s time.

Before we look at HMO Property Designs and what we can offer investors on property investments, let’s look at the general market.

What qualifies as an HMO property?

For a property to be categorised as an HMO property, it must be a house that is split into separate rooms and let out to three or more tenants. These tenants cannot be members of the same family, and nor can the property have just one tenant.

Multiple tenants in the HMO property will share facilities such as kitchen and bathrooms. To meet regulatory standards, the property must have a local council HMO Licence. This allows the property to operate within the required regulatory and legal framework.

What kind of property counts as a house of multiple occupation?

You will most likely come across an HMO property referred to as a house share. Students who are privately renting will most likely be in some form of HMO property.

HMO properties are popular accommodation solutions for young professionals too. This is because they can access a let property of higher quality than if they were to rent a studio or small flat for themselves.

Multiple tenants pay separate rents to the property owner or landlord, and management companies can ensure that the property complies with regulations and is kept in good order.

So, the major benefit for multiple tenants is an affordable rental, while for landlords it’s the regular income from three or four separate tenants. For a property investor, income will be higher for HMO properties than standard buy to let residential properties with just one tenant or one family paying rental income.

HMO Property investment versus standard buy to let property investment

Average yields for rental income are as follows, showing the difference between the income investors can expect from HMO properties compared with buy to let properties.

Q3 2019

HMO: 8.92%

B2L: 5.72%

Q4 2019

HMO: 9.37%

B2L: 5.78%

Q1 2020

HMO: 8.7%

B2L: 5.82%

Q2 2020

HMO: 7.68%

B2L: 5.91%

Q3 2020

HMO: 9.16%

B2L: 5.82%

Q4 2020

HMO: 9.13%

B2L: 5.69%

*This data is from Mortgages for Business Buy to Let index.

What are the downsides to HMO property investment?

At HMO Property Designs we offer specifically designed investment strategies that mitigate the stress of HMO investment.

Without this, however, some landlords may find that property investment into HMOs are sometimes more challenging to manage. HMO investment will absolutely give the investor/landlord higher yields than other forms of property investing. However, investors may find that running costs are higher and the time needed for management is also higher.

Therefore, a new landlord looking for the benefits of investing in student accommodation may think that the risk outweigh the upside. While some property experts say that a landlord who is brand new to the market should avoid choosing an HMO investment in favour of a more traditional property, at HMO Property Designs, we disagree.

Our investment strategies allow investors to let properties, collect regular rent and have the management taken care of.

What is an HMO licence and why is the legislation in place?

A local council or authority will grant HMO licences for residential housing in their area. that is let out to students or other multiple occupants. These remain valid for five years, and legislation surrounding these licences has changed relatively recently.

Currently, any property that rents to five or more tenants who come from two or more households, and who all share facilities needs a licence. This means that, in many cases, smaller properties may not need a licence.

Legislation differs between different local authorities, so any investors considering moving into HMO investment should check the rules in the property’s region.

All relevant legislation and regulatory compliance is fully covered and managed by our team for a stress-free way of gaining financial value.

The kinds of conditions contained within licences include:

• Who is managing the rooms and the property. This could be the investor or managing agent. Whoever it is must be legally considered ‘fit and proper’ to handle the job. Generally, this refers to having key areas covered, such as not having a criminal record or being in breach of landlord codes of practice.
• How suitable the property is to be an HMO investment. The property must be adequate for the relevant number of people living in it and encompass the correct facilities.
• The property manager must provide an up-to-date Gas Safety Certificate to the local authority on an annual basis.
• Smoke alarms must be in place and maintained correctly.
• All electrical appliances must have up-to-date test certificates.
• The rooms in the house must be a certain minimum size. This is key and something that should be taken into consideration for investors converting a property to meet HMO demand. Complying with these regulations is essential for the property owner to raise capital on the property.

What is the criteria for a buy to let HMO?

Demand for HMOs derives from students, young professionals or single tenants who want high quality accommodation at a lower cost.

Renting rooms in a shared house or HMO is therefore the ideal solution.

As an investment property type, HMOs are considered specialist. In terms of lenders and mortgages, some include them and some don’t – but most do. The specific criteria varies between lenders, but in general when it comes to HMOs and those who want to invest in them, the following criteria apply.

Number of rooms

Most lenders for buy to let HMOs consider up to six bedrooms acceptable. Any more rooms than this, and there is a perception from those looking to invest that it becomes commercial. While specialist lenders can meet the demand for large houses of multiple occupancy, the majority will focus on a house with up to five rooms.

All of our properties sourced by specialists at HMO Property Designs are three or four room configurations, depending on the client’s plans for the house.

Tenants

As we’ve already covered, HMO properties often meet the high demand for student accommodation. Students who want to rent one room in a house rather than depend on university owned houses will turn to a shared house.

Almost all lenders accept students, young professionals or tenants on some form of benefit. When people invest with us, part of the package we offer includes providing already vetted tenants for their property.

Valuations

For lenders, the valuation of the property will depend on a number of factors. If the property is in an area with few other HMOs, then they may do a traditional survey and compare it with average single household properties to find the price and value.

However, this obviously doesn’t include the money and income made on each room of the property, which has a bearing on the price and potential capital it could make for the investor.

HMO mortgage options

At least a third of buy to let mortgage lenders include HMOs. There is a recognition of the recent growth in popularity of HMOs from investors who see it as taking a lesser risk. This growth is likely to continue as there is a rising number of young professional people, students and individuals looking for non-traditional property solutions.

This is particularly the case in cities with high levels of corporate growth, cities with multiple universities and places of education and cities that are rising in value for job-seekers and those looking to improve their financial position.

Do HMO landlords have to be highly experienced?

This depends on the investment and financial strategies they are considering. The average mortgage lender may feel that HMOs or multi let properties are better handled by experienced investors.

This is one of the reasons why we have devised investment options that are suitable for experienced and for new investors to the market.

The rise in popularity of HMO investment solutions

During the last 15 years or so, the UK HMO sector has grown considerably.

This is mainly down to the demand for affordable accommodation, due to excessively high house price growth.

In the UK, the average price for a house is £253,000, leaving a first-time buyer needing more than an average salary (£30,800) to afford the deposit.

In London, of course, property prices are even higher. Currently, the average price stands at more than £500,000.

So, for people who aren’t comfortably on the property ladder, renting is their only real choice. It also seems that there is an increase in young people (21- to 35-year-olds) choosing not to buy and preferring a rental property anyway. Again, this is particularly the case for this demographic in London.

How many people are in the private rental market in the UK?

It’s estimated by the Government that there are more than 4.4 million households privately renting their property, regardless of the location.

And within the private rentals market, in England and Wales there are approximately 497,000 HMOs.

People simply cannot manage to afford to buy properties in places like London. Furthermore, there are many people not in traditional family units who actively choose to be a tenant.

House prices may preclude them from owning without an outlay of money that they can’t afford, but HMOs allow them to live in a location they choose for prices they can afford.

Investors increasingly want to invest in HMO properties

As well as the growth in popularity of HMOs with tenants, those looking to invest are more interested in these opportunities too.

For landlords, investments like this could give them higher gross yields than traditional investment deals.

Investors could be put off the idea of the management aspect compared with traditional deals. However, the benefits outweigh the risk for many – particularly if a management company takes on the responsibility for the owner/investor.

This kind passive income is ideal for those investing in HMOs. So the tenant is happy with a high quality, well maintained room in a shared house, and the investor benefits too.

Local authorities are also keen to promote HMO investments in major cities like London and Manchester. This is because councils can control the density of HMOs and other housing stock in a specific region.

Every property investor interested in meeting the demand for HMOs must remember that local authorities will absolutely demand permission for conversions.

Again, at HMO Property Designs, this is part of our offering to clients, which we’ll go into more detail about further on.

The UK has a housing shortage

The UK Government says that there is a chronic under-supply of housing in England.

In this article, they estimate that there is a demand for up to 345,000 new properties every year.

However, the Government has never met its targets in providing new properties.

This drives demand for HMOs. At the same time, there has been an upswing of demand from tenants as well.

What do HMO Property Designs offer investors looking for rental income?

Our team is highly experienced in this sector and have crafted unique deals to ensure that clients get the rental income they want.

The schemes offered by HMO Property Designs, which is an investment firm for landlords and investors, guarantee ultimate yields of up to 20%.

This corresponds to a monthly rental income of more than £1,500 per calendar month.

While many concentrate on London to invest in property, our carefully sourced houses are mostly in the North West.

Manchester and the North West of England offer great returns on HMOs, along with relatively low house prices to outlay.

As a company, HMO Property Designs is the biggest independent student accommodation conversion business in Manchester and the North West.

Investments with HMO aren’t all based in Manchester itself, but many are nearby in the surrounding area.

As a company we have vast experience in the HMO space and can advise on everything from

What makes our company different?

Our packages for those looking to invest in multi room properties are unique to the market.

The HMO Property Designs team has sourced a portfolio of suitable houses that can be converted to accommodate each bedroom.

The client buys directly from the vendor, but from our portfolio. Prior to the exchange of contracts, we produce a plan for conversion and reconfiguration of the property to meet the investor’s needs.

This could include leaving the property as a two-bedroom house or converting each room so that it is suitable for a tenant each. The conversion of the property into HMO is fully compliant with Article 4, which is Government legislation concerning the change of use of a property to an HMO.

The team then manages the redesign/refurb of the property. So, the client is sure to invest not just in the property, but also all aspects of management (through our sister management company), compliant refurbishment and configurations suitable for either multi-let or B2L.

Why should people invest through HMO Property Designs?

Those that invest through one of our schemes can expect returns of between 15 and 20% on the multi-let option.

The majority of the deals that we manage comprise four-bed HMOs.

To invest in a traditional B2L model usually commands around £400 pcm in rent. Allowing for mortgage and maintenance, a net profit averages around £150 pcm.

The HMO investment model, on the other hand can yield around £1,100 pcm, equating to £13,200 per annum.

For more information about the investment model head to our website.

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Also known as ‘shared houses’, HMOs accommodate students, professionals and all kinds of groups that are different to the traditional family unit.

There is a growing demand for these types of houses, particularly in urban centres and outer city regions.

An HMO must fulfil a number of criteria laid out by the Government.

It’s important for anyone who is considering becoming and HMO landlord or to invest in an HMO understands these regulations and ensures they are fulfilled.

HMO Property Designs are experts at sourcing, reconfiguring and managing HMOs. Our portfolio is based mainly in the north west of England.

This is partly to take advantage of the reasonable prices compared with areas like London and the South East, but also because Manchester and the surrounding towns and cities have a strong economic future.

What is the criteria for an HMO property?

Houses in multiple occupation must fulfil certain criteria to be considered an HMO. The exact configuration can vary between each local authority, but broadly speaking, the UK Government stipulates the following:

The definition of an HMO property is fulfilled when the residential dwelling meets these two criteria:

• At least three tenants live in the accommodation, from more than 1 household.
• The occupants (who are from more than one household) share toilet, bathroom or kitchen between them.

A large HMO property must comply with the following:

• At least five tenants (there can never be just one tenant in an HMO), who form more than one household.
• Multiple tenants have shared facilities in HMOs including toilet and bathroom or kitchen.

What defines a ‘household’ in houses in multiple occupation?

You’ll notice that the definition of HMO properties includes reference to a private rental house with three or more people, who must be from multiple households.

In this context, a household is defined as either a single person renting a property by themselves, or members of a family that all live together in the residential property.

And the definition of a ‘family’, which can come under the definition of ‘households’ can include the following.

For example:

• Tenants who are living together or married (including same-sex).
• Half-relatives or direct relatives, for example, siblings, aunts, uncles or grandparents.
• Step-children and step-parents.

Who is responsible for bathroom or kitchen facilities?

The HMOs landlord has a legal responsibility for the dwelling.

Landlords are responsible for ensuring that bathroom or kitchen facilities and the rest of the rental house is free from potential hazards and safe for each tenant to live in.

The landlord is most likely the person who owns the mortgage on the property. However, the accommodation can also be maintained by a management company contracted by the owner to act as agents.

What are the safety responsibilities of a house in multiple occupation (HMO) landlord?

Houses in multiple occupation are rental properties by definition.

This means that an HMO property provides rental yields to the property investor or landlord who owns it.

In return for the rental yields, the landlord has various responsibilities concerning safety, as regulated by local councils and central Government in England.

Safety responsibilities include gas safety, fire safety and ensuring the multiple occupancy accommodation is fit and proper.

Gas safety

Tenants can expect landlords to:

• Ensure gas equipment is maintained by a Gas Safe registered engineer.
• Ensure a registered engineer carries out an annual safety check on every gas flue and appliance.
• To receive a copy of the safety check record within 28 days.

Electrical safety

Tenants can also expect that HMO landlords ensure:

• The entire network of electricity throughout the property is safe.
• Every electrical appliance is safe.

Fire safety

Tenants can also expect HMO landlords to cover fire safety, which includes:

• Always following regulations as stipulated by the local council and other bodies for multiple occupancy accommodation.
• The property has easily accessible escape routes at all times.
• A smoke alarm is fitted on each separate storey of the property.
• A carbon monoxide alarm is secured in any room of the property that has a coal or wood stove or fire place.
• Ensuring any furnishing or fittings in the properties are fire safe.
• Installing extinguishers and fire alarms. While the Government’s stipulations are that this is only necessary in a large HMO (see above for the definition), each local council will have its own rules for HMOs.

What property types fall under the definition of an HMO property?

At HMD, our properties are sourced largely from the North West of England. This is because the properties are relatively cheaply priced for the investor, and because there is a high demand for HMOs by tenants.

Our properties are mostly terraced houses that can be reconfigured into HMOs for three or four tenants.

However, HMOs aren’t confined to terraced properties. Many different property types can also come under the HMO housing definition. These include:

• Shared houses for students, young professionals or individual tenants.
• Buildings that house a number of bed sits with occupants sharing key facilities.
• Hostels.
• Properties that contain separate flats that are not fully self-contained.
• Blocks of flats that have been converted into HMO accommodation.
• Accommodation for employees.
• Private halls of residence for students.

Features of a typical HMO property

To comply with HMO regulations then, the occupied property needs to have three or more separate tenants who live in different rooms.

Regulations state that the HMO occupants of the property must not form one single household (as defined above).

The housing is owned by a mortgage holder who may be a property investor, a management company or an individual landlord.

Tenants cannot use the housing for anything other than their main place of residence.

And at least one of the tenants must pay rent to the property owner or landlord.

Usually, all of these factors have to be in place for the accommodation to be considered an HMO. However, local authorities can change these and issue an HMO declaration.

Why landlords must work closely with the local authority to comply with HMO regulations

Tenants can complain directly to local authorities if they consider the property falling short of expected HMO standards.

HMOs are closely regulated by the local council and landlords must ensure that everything is in place for each tenant.

The tenant pays the rent to the landlord and if any of the rooms are deemed unsafe or unacceptable by the council (this usually means Environmental Health) then the landlord could be prosecuted.

In extreme situations, it has been known for the council to take over management of the HMO from the landlord. However, this is very rare.

Do all HMOs have to be licensed?

In normal circumstances a licence is only necessary for a large HMO (as defined by the Government and outlined above).

The Government further specifies that a licence must be granted before the landlord can rent out the large shared property.

An HMO licence lasts for five years maximum, so landlords must reapply after that time.

However, even if the HMO is smaller and fewer tenants pay rent on the property, it may be necessary to get a licence.

Licensing is controlled by local authorities, so any mortgage holder that wants to rent out their housing to multiple tenants must check on the necessity of a licence first.

Each separate HMO, with separate rooms for each tenant needs a different licence

Furthermore, licensing authorities can include their own conditions to the licence. The mortgage holder should apply for the licensing information themselves, or through a managing agent.

HMD handles all of these regulations, licensing requirements and housing reconfiguration on behalf of our investors.

It’s part of the unique package that we offer, covering key organisational issues for investors. This allows them to lower their risk and benefit from rental income from the occupied property.

Why HMO Property Designs managing the investment makes it easy for mortgage holders

Our schemes involve investors buying the property directly from the vendor, but from our portfolio.

As they select the property from our own portfolio of the most suitable HMOs on the market, this saves lots of time and hassle.

The investment risk is lower when the team handles all the aspects of the reconfiguration and decoration of the property.

HMD provide fully vetted tenants up front

We also provide each property with at least three tenants, all of whom have passed mandatory checks and vetting and have paid a deposit.

We project manage the refurbishment/configuration of the property working as agents for the investor.

Any licensing, regulatory and legal requirements are also handled by our team. This ensures that the mortgage holder is fully legal and ready to let the HMO immediately.

In other words, the investor has a viable business with their choice of HMOs right from day 1.

Without this kind of scheme, HMO landlords and investors could discover that there are a number of legal requirements that they must fulfil. This sucks their time and could render the investment less valuable for them.

Investors make a steady passive income with our investment schemes

We offer a number of specially designed investment strategy schemes, designed to maximise rental income for the HMO property owner.

HMOs generate higher yields than more traditional buy to let property rentals, and this combined with lower house prices due to the region we have selected offers excellent value investment opportunities.

Stamp Duty Land Tax for investors who buy more than one residential dwelling

Whether investors decide to buy one of the properties from our sourced portfolio, or multiple properties, there are various risk factors to consider.

Stamp duty tax relief is available for investors who purchase more than one property. This includes properties reconfigured into HMOs or bought on a buy to let basis.

Anyone buying houses or flats for investment reasons and outside of their main dwelling is eligible to pay mandatory Stamp Duty Land Tax (SDLT) at 3%.

For non-residential purchases (those that could be used as buy to let investments or HMOs) the surcharge is 3%.

A client that is on a search for a specific investor project on the market should consider the following rates of SDLT.

If its value is up to £150,000, there is no SDLT to pay.

However, the next £150,000 (ie, the money between £150,001 and £250,000) is taxed at 2%.

The final amount – the money above £250,000 – is taxed at 5%.

A round-up of reasons to invest in HMOs

The first and most obvious reason is that investing in HMOs results in substantially higher rental yields.

We can guarantee HMO yields of between 15% and 20% on the houses we have carefully sourced. This equates to a profit of more than £13,000/ annum.

There are fewer possibilities of arrears due to rent coming from a number of tenants. A single let property not paying obviously has different ramifications for the landlord than one person out of four not paying.

Void periods aren’t as damaging or significant as the income from the other people in the house will continue to be paid.

There is a constantly increasing demand for affordable and flexible accommodation solutions in city centres and the outer areas.

In our professional opinion, this demand will continue to grow, particularly as people begin to recalibrate following the COVID-19 pandemic.

City centres are opening up and finding new ways to operate in the post-pandemic environment. There will be considerable changes to the UK’s high streets as mixed use spaces become more prevalent.

We will also see more urban areas expanding into the HMO market, so that young professionals and those who want to access all of the benefits of city centre living can do so in an affordable and achievable way.

Unique HMO solutions offered by HMD

We combine the best of all worlds in our HMO investor schemes.

They’ve been developed and improved based on our collective experience within this market and within commercial property.

A balance must be struck between the initial outlay and the ongoing management of the house to ensure that the client achieves the returns they’re expecting.

And for tenants, getting on the housing ladder is just not feasible in many cases. Prices are rising all the time, and people do not want to compromise on the quality of their living space. This naturally turns their thoughts to HMO properties, as they can take advantage of a high- quality home while sharing the burden of rent.

Head to our main website for more information on exactly what we offer and how it works to command a passive, regular, reliable income.

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