HMOs in Wales produce the highest yield in Britain according to Paragon Bank data.
The research — which is based on applications — shows that Welsh HMOs produce an average yield of 9.01%, generated from an average £29,100 rental income and £322,000 average valuation.
Yorkshire and Humber is second on the list with a yield of 8.61% and the North West comes in third with 8.33%.
Across Britain there are five regions which produced HMO yields over 8%.
London is at the bottom of the regional HMO yield table, generating 6.13% from rental income of £52,900, and an average property value of £863,000.
Louisa Sedgwick, commercial director for mortgages at Paragon Bank, said: “Demand for HMOs has grown in recent years as the quality of the accommodation has risen, with facilities such as ensuites becoming commonplace.
“HMOs are moving up the quality scale as tenants demand more space, better services, and access to private facilities.
“The key to a successful HMO proposition lies in the experience of the landlord, the location and understanding the target tenant market.”
