In the current UK property market, houses in multiple occupation (HMOs) are proving to be highly lucrative investments, yielding an impressive average rental return of
8.34%. Recent research conducted by Paragon has revealed that the ongoing shift in rental prices and the stabilization of house price growth is encouraging landlords to refocus their strategies towards maximizing income through HMOs. This trend is particularly pertinent as landlords navigate rising mortgage rates and increasing refurbishment costs. Understanding the driving factors behind these high yields is crucial for current and prospective landlords looking to capitalize on this thriving sector.
