Half of house in multiple occupation landlords use their property, or portfolio, as their sole source of income, research from buy-to-let lender Landbay has revealed.
The research found just under 30 per cent of those landlords which owned a HMO property or portfolio did not have another job and used their property as their only income.
One such HMO landlord said: “Our company is very happy with our portfolio performance in London and we intend to continue at least for the present.”
Landbay sales and distribution, Rob Stanton, said: “Our survey results show continuing confidence in HMOs.
“Despite proposed rental reforms and local authority licensing schemes, the market remains resilient.
“With an ongoing housing shortage, demand is stronger than ever for decent and fairly managed house shares.”
Despite some of the complexities of managing HMOs, the survey found that nearly half of the properties were self-managed by landlords - a third of whom owned portfolios with over 20 properties.
The reason for this more DIY approach could be that the most popular size of HMO portfolio was the smallest, between 4-10 properties, with 34 per cent falling into that category.
The survey also found the highest proportion of HMOs were in London and the South East, where 47 per cent of these landlords reside, followed by the East Midlands.
Stanton additionally pointed out that HMO landlords have received a “boost” from falling utility bills which have meant higher net rental thereby making it easier to borrow a greater amount against the property’s value.
“In addition, council tax banding for individual rooms in shared houses has been reversed so HMOs are classed as a single dwelling as before.
“As long as investors do their research thoroughly before making the leap, HMOs can give great returns.”
The research additionally detailed that 72 per cent of these landlords owned HMO properties through a limited company.
tom.dunstan@ft.com
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