HMO (Housing in Multiple Occupation) properties are those which are let to a number of non-related individuals
Such properties have always existed, particularly in University towns and in busy metropolitan areas. Recently, there has been an increased focus on these types of properties, as investors have sought to generate a greater rental-yield from their property portfolios. It is often the case that a property let as an HMO will generate more income than one which is let to a single family. As greater numbers of investors have moved towards HMO-type set-ups, so many local authorities have responded by increasing regulation for such dwellings. It is important that, as an investor, you understand the responsibilities placed upon you by the relevant local authority, when becoming the landlord of an HMO property. Most local authorities now require HMO properties to be licensed.
As HMO properties will often generate a greater rental-yield, we are regularly contacted by landlords who want to raise additional capital from their existing properties. We have a lot of experience in this area, both with licensed and unlicensed properties. We have an excellent understanding of the licensing requirements and also of which lenders have an appetite for lending on these types of properties.
If you have an existing HMO property or if you are considering the purchase of one, click here or call us to speak with one of our advisers.
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Clifford Davis is a premier provider of property-related financial advice. Based in Barnet, North London, we pride ourselves on being able to advise and to provide guidance in all areas of property-related finance.