By Richard Low, Managing Director of The Property Explorer
I’ve been in the UK property market for over 30 years, and I’ve seen trends come and go.
But one trend that’s really picking up steam is the rise of high-level Houses in Multiple Occupation (HMOs). Once considered the bottom of the property ladder, often seen as cheap and dreary, HMOs are getting a major makeover. These days, high-level HMOs, especially here in Hampshire, are becoming a top choice for landlords who want to maximise their returns and meet market demand.
The New Wave of HMOs
In the past, HMO rooms were all about affordability, typically costing between £90-£140 per week. They were basic and no-frills, perfect for those on a restricted budget. Meanwhile, renting a studio flat could easily cost £1,000 per month or more, especially when you add in bills and council tax.
But now, things are changing. Landlords are creating bespoke and even luxurious HMOs. These properties aren’t just functional—they’re designed to impress, with features like en-suites, kitchenettes, and sometimes, even included a small fully-fitted kitchen. These upgrades mean landlords can charge between £150-£200 per week, including bills. For around £800 per month, tenants can enjoy a much nicer living space compared to a standard studio flat.
Why High-Level HMOs Are Attractive
Here’s why these high-level HMOs are so appealing:
- Great Value: At £800 per month including bills, high-level HMOs offer fantastic value compared to traditional studio flats. Tenants get more for their money with better amenities and communal spaces without the hassle of extra bills.
- Better Living Conditions: Modern, well-designed HMOs offer a significantly better quality of life. Luxurious touches like en-suite bathrooms, high-spec kitchenettes, and stylish communal areas make living there much more comfortable and enjoyable.
- Community Feel: Unlike the isolation of studio flats, HMOs create a sense of community, especially when they have shared spaces. Shared kitchens and living rooms encourage social interaction, which can be great for young professionals and first-time renters.
- Flexibility: For tenants, HMOs offer flexible living arrangements. Shorter tenancy agreements and the ability to rent a room rather than an entire flat can be more convenient and budget friendly.
The Market Demand
With the current housing and living crisis, the demand for affordable yet quality housing is higher than ever. First-time renters, young professionals, and even students are turning to high-level HMOs as a great alternative to traditional rental options. They appreciate the combination of affordability, quality, and convenience that modern HMOs provide.
The Investment Perspective?
For landlords, investing in high-level HMOs can be very profitable. The initial costs of refurbishing are balanced out by the higher rental yields. Plus, the strong demand for quality HMO accommodation means lower vacancy rates and a more reliable income.
With the right management, the challenges of running an HMO—from dealing with tenants to handling maintenance—can be managed smoothly. That’s where professional services like those offered by The Property Explorer come in. We help landlords refurbish second-rate HMOs into high-level, high-yield properties and fully manage them to ensure maximum returns with minimal hassle.
Conclusion
As the property market continues to change, high-level HMOs are becoming a smart investment for landlords. They offer a great mix of affordability for tenants and profitability for landlords, making them a win-win in today’s economic climate.
If you’re interested in turning your property into a high-level HMO, The Property Explorer is here to help. We offer complete services to refurbish and manage HMOs, making sure they attract high-paying tenants and deliver excellent returns. To learn more, give us a call at 01256 321777 or email us at hello@thepropertyexplorer.co.uk.
In these challenging times, innovation in the property market isn’t just beneficial—it’s essential. High-level HMOs are the future, and there’s no better time to invest in this growing trend.