Capitalise on the appetite for rental properties and cut void periods with HMOs.
It’s fair to say that legislation and mortgage rates have made the rental market tougher for landlords. But with demand for rental homes remaining high, there are still plenty of opportunities ready to be seized by savvy investors.
In particular, landlords are increasingly taking advantage of the distinct benefits of houses of multiple occupation (HMOs).
Better yields, better security
With three or more tenants, each of whom has a separate tenancy agreement, a HMO property is very unlikely to sit completely empty when a tenancy comes to an end. This means you can reduce your risk of void periods and enjoy a less interrupted income.
In addition to a surer cash flow, you can also generate far greater yields. According to recent analysis based on figures from the Office for National Statistics (ONS) and Landlord.io, the average rental income of a HMO property in England and Wales is £29,715 per annum. This gives the overall HMO market an annual rental income of £6.3 billion.
This compares very favourably against average rents in standard buy-to-let properties. According to Rightmove, the average rent across all buy-to-lets in England and Wales is now £1,526 per month, generating an annual return of £18,312. This sits significantly below the average calculated for HMOs.
The amount earned from a HMO can be bolstered even further if the property is maintained to a high standard and based in a sought-after location, such as near train stations and other amenities. This will also positively impact their capital growth potential. In April 2025, the average value of a HMO property in England and Wales stood at £293,197. This is once again much higher than the average value for all buy-to-lets in these areas (£270,000), showcasing just why HMOs are becoming an important part of property investors’ portfolios.
HMO opportunities going under the hammer
54 Ashburnham Road, Southend-On-Sea
Situated in a prime location close to the university and just a short walk from both Southend Victoria and Southend Central train stations, this substantial HMO is an excellent turnkey investment.
Featuring seven bedrooms, each with their own bathroom, this substantial property is extremely well presented. Fully registered and fully let, the new owner will be able to immediately benefit from an income of £4,750 per month, or £57,000 per annum.
Guide price: £450,000 - £500,000 (plus fees)
50/52 Shaftesbury Avenue, Southend-On-Sea
For the last 12 years, these two properties have been used as a single unit to provide supported living for up to 12 people. Now vacant, these generous properties could be well-suited to an alternative use as a HMO, with the right permission.
Located in close proximity to the seafront and overlooking the verdant Southchurch Park, these houses are in an enviable position for renters. Key amenities, such as Southend East station, are also just a short stroll away.
Guide price: £550,000 - £600,000 (plus fees)
7 Beach Road, Lowestoft, Suffolk, NR32 1EA
This seven-bedroom, fully licensed HMO will offer an immediate income to its new owner. Currently let out to a housing association on a seven-year lease, the property is earning an attractive annual income of £41,640.
Based near to Lowestoft’s town centre, this terrace provides easy access to amenities and the local railway station. Covering three storeys, it boasts seven bedrooms, a modern kitchen and a shared rear patio.
Guide price: £450,000 (plus fees)
11 Regent Road, Lowestoft, Suffolk, NR32 1PA
This large terrace has already been converted into a HMO and, when fully let, can provide you with a tempting income of £44,160 per annum. The property and its seven bedrooms have been kept in good condition, and renters will be attracted by its proximity to the town centre and railway station.
Guide price: £275,000 - £325,000 (plus fees)
36 Alexandra Road, Lowestoft, Suffolk, NR32 1PJ
Just 10 minutes’ walk from the train station is this profitable HMO. When all seven of its bedrooms are let, it can produce an annual income of £42,120.
Ideal for an experienced investor, the property is in favourable order and ready for a new owner to turn it into a truly valuable asset.
Guide price: £275,000 - £325,000 (plus fees)
