More Landlords Look To Hmo Investments
More than one in five landlords say they are looking to invest in houses of multiple occupation (HMOs) over the next year, one survey reveals.
Precise Mortgages says that 21% of landlords say they are planning to invest in HMOs as they achieve the highest average rental yield with 6.3%.
The prospect of HMO investment during market uncertainty will also make them an attractive proposition.
The firm's managing director, Alan Cleary, said: "With market uncertainty, HMOs offer an attractive option for landlords wanting to maximise yields.
"HMOs attract landlords with gross rental income tending to outstrip those for single lets which means the rent is more secure if one tenant leaves to create a void."
'Landlords are looking to rebalance their portfolio'
He added: "The expansion of HMOs helps to underline how experienced landlords are looking to rebalance their portfolio."
Their latest report also reveals that the average yield for all property types fell in the second quarter by 0.3% and are now at their lowest since 2010.
The most popular property investment for landlords currently are terrace houses with half of landlords saying they are looking to buy one.
However, the survey also reveals that 40% of landlords say they are looking to sell their terrace houses over the coming year.
Mr Cleary added that the survey of National Landlords' Association members revealed that landlords are increasingly looking at blocks of flats to offer long term yields.
Tenants being charged rent for pets
Meanwhile, Generation Rent says that tenants are being charged up to £600 a year to have a pet in their rented home.
They say the fees are being introduced as landlords are looking to find new ways of making money after the Tenant Fee ban came into force.
The campaign group says that landlords are now introducing pet rates that can be between £25 and £50 per month.
A spokeswoman for Generation Rent said: "It's difficult for tenants finding a landlord who will allow a pet and unfortunately with deposit changes we see an increase in landlords charging a pet rent. This is the wrong approach from landlords."
She added that as landlords take a deposit already, this should cover any potential damage being caused by a pet.