The North East has the highest yields for houses in multiple occupation, while London tops the list for property values for this type of rental, according to Lendlord’s first HMO Data Analysis report.
These homes in the North East attracted an average yield of 15.4%, compared to a UK average of 10.4%, analysis from the property management platform shows.
Greater London commands the highest average property value at £660,227, compared to a UK average of £285,279. Northern Ireland, at £125,400, trails with the lowest value.
The largest annual rents are found in the South East, averaging £46,041, against a nationwide figure of £28,248. Northern Ireland again turned in the lowest annual rents at £13,056.
The capital topped price-to-rent ratios at six-and-a-half years, against a UK average of 4.2 years. The North East North East turned in the lowest figure at 2.7 years.
The report also sheds light on “the stark contrasts” between UK regions.
It says: “Greater London dominates the market, accounting for 20.6% of all houses in multiple occupation analysed, yet offers lower yields compared to the North East, where investors can achieve the highest returns.
“Meanwhile, the South East delivers the highest annual rental income at £46,041, making it a compelling option for landlords seeking a balance between capital value and rental returns.”
Lendlord co-founder and chief executive Aviram Shahar adds: “The houses in multiple occupation market remains a cornerstone of the UK’s rental sector, offering significant opportunities for landlords and investors. However, maximising its potential requires clear, data-driven insights.
“This report highlights key trends and regional disparities, providing landlords and brokers with the information they need to make informed, strategic decisions.”
Lendlord’s study drew on data from 1,126 houses in multiple occupation.
