8:57 AM, 16th February 2026, 2 months ago
The North West holds the largest concentration of HMO homes anywhere in Britain, underlining the region’s growing importance for landlords targeting higher-yielding assets.
According to the property management platform, Lendlord, the area accounts for 17.9% of all Houses in Multiple Occupation, placing it ahead of every other region.
Greater London follows at 16.5%, reinforcing the capital’s enduring pull despite far steeper entry costs.
However, while northern markets dominate on returns, they often lag on supply and the North East delivers the strongest average yield at 15.1%.
That’s marginally below the 15.4% recorded a year earlier yet represents just 3.6% of total HMO stock.
HMOs increasingly important
The firm’s co-founder and chief executive, Aviram Shahar, said: “The importance of HMOs to property investors has never been clearer and our Q4 2025 figures highlight that yields have remained fairly constant year on year with the average annual rent increasing by an impressive £5,000 in just one year.”
Lendlord also says HMO property values tell a different story with London commanding the highest average price at £684,724, up £24,497 year on year.
By contrast, comparable assets in the North East average £232,461, illustrating the capital gap facing landlords weighing affordability against income potential.
HMO yields fall
However, yields overall have edged downwards, slipping below the 10% threshold as values rise faster than rents in several locations.
Headline indicators show the North East posts the strongest returns at 15.1%, though nationally the typical yield now stands at 9.6%, easing from 10.4%.
London produces the highest annual rental income at £55,017.