Landlords operating Houses in Multiple Occupation (HMOs) are showing resilience amid rising property improvement costs, with many planning to enhance their portfolios. Recent findings indicate that a significant portion of HMO landlords are committed to their investment strategies, with 80% intending to either maintain or expand their property holdings over the next year.
How Much Are Landlords Investing?
A substantial 62% of HMO landlords have undertaken property improvements in the last six months, with an additional 24% having done so within the past year. Furthermore, 15% of landlords expect to spend between £5,001 and £10,000 on enhancements, demonstrating a strong commitment to maintaining property standards and rental appeal.
What Are the Expected Returns for HMO Landlords?
HMOs are perceived as lucrative investments, with 82% of landlords reporting better rental yields compared to traditional residential lettings. Furthermore, 79% of landlords noted stronger returns from their HMO properties. Paragon Bank’s data supports this, indicating that HMOs generated an average yield of 8.9% in Q2 2026, outpacing other property types.
What This Means for Landlords
For landlords, the current trend indicates a robust confidence in the HMO sector. With 54% of landlords expressing a strong likelihood of further improvements in the next year, it’s clear that many are taking a long-term view of their investments. This commitment not only enhances property value but also ensures continued competitiveness in the rental market.
