Landlords who personal homes in a number of occupation achieved nearly double the annual income of standard lets final yr, new information reveals.
The common HMO landlord made £120,283 in gross rental income per property during the last 12 months, in line with information offered to lender Aldermore by information group Pegasus Insight.
This compares to gross rental income of £61,846 introduced in by common non-HMO landlords over the identical interval.
Aldermore director of mortgages Jon Cooper says: “While it’s frequent information that HMO landlords have a tendency to profit from enhanced annual incomes and better yields, the distinction in scale right here is main.”
“The numbers listed below are a well timed reminder of how enticing HMOs might be as an asset class for a lot of landlords throughout the nation.”
The information additionally highlights that HMO properties play a big half within the portfolios of landlords with the highest-earning portfolios.
Three in 10 HMO landlords make a gross rental income between £100,000 and £199,999, in comparison with only one in 10 of landlords with out HMOs.
For the very best gross rental income class of £200,000-plus, 13% of HMO landlords fall into this bracket, in contrast with 5% landlords with out HMOs.
However, HMOs have tighter, and extra expensive, restrictions than single-use houses, which embody extra stringent planning purposes and should present councils with common proof of options comparable to up to date gasoline, electrical energy and hearth security.
Research by Pegasus Insight was carried out amongst 794 landlords between 22 June and 7 July.
