Property management and financial platform Lendlord has published its inaugural HMO Data Analysis Report, providing detailed insights into the Houses in Multiple Occupation (HMO) market for Q4 2024.
Drawing on data from 1,126 HMO properties, this comprehensive report reveals regional trends in property values, rental yields, and market distribution, empowering landlords, brokers, and property investors with actionable insights.
The data highlights significant disparities in regional performance, with Greater London leading in average property value (£660,227), while the North East offers the highest average yield (15.4%). Key trends include an inverse correlation between property values and yields, demonstrating opportunities for investors to maximise returns in regions with lower property prices but higher yields.
Headline stats from the report:
• 15.4%: Highest average yield (North East).
• £660,227: Highest average property value (Greater London).
• £46,041: Highest annual rental income (South East).
• Average HMO yield across the UK: 10.4%.
• Regional price-to-rent ratios range from 2.7 years (North East) to 6.5 years (Greater London), with an average of 4.2 years.
The report sheds light on the stark contrasts between regions. Greater London dominates the market, accounting for 20.6% of all HMOs 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.
Further findings reveal that regions like the West Midlands (11.8% market share) and the North West (15.1% market share) play pivotal roles in the HMO landscape, reflecting a clear North-South divide in property values and investment efficiency.
Lendlord is a UK-based property management and financial platform designed to simplify portfolio management for landlords, property investors, and brokers. Combining cutting-edge tools for financial analytics, compliance tracking, and property insights, Lendlord empowers users to make informed decisions and maximise their investments.
Lendlord’s data-driven approach is designed to simplify the complexities of HMO investment and property management. The platform provides landlords and property investors with tools to analyse yield performance, manage portfolios, identify new opportunities and get access to digital finance (mortgages and bridging finance). By integrating these insights directly into its platform, Lendlord empowers users to make informed decisions backed by reliable data.
Lendlord’s Q4 2024 HMO statistics is available in this link: https://lendlord.io/hmo-data and it marks the beginning of an ongoing initiative to provide quarterly insights into the UK property market. Future reports will track trends and uncover emerging opportunities for landlords and brokers, ensuring stakeholders stay ahead in a competitive environment.
Aviram Shahar, Co-founder and CEO of Lendlord, commented:
“The HMO 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.
“At Lendlord, we’re committed to leveraging technology to simplify property management and empower smarter investment choices, ensuring our users can confidently navigate the complexities of the market.”