The latest Landbay research revealed that half of HMO landlords surveyed by the lender use their property or portfolio as their sole source of income.
According to the data, just under 30% of landlord participants own an HMO property or portfolio.
Of those, 72% own the HMO properties through a limited company.
In addition, the survey revealed that nearly half of the landlord participants self-manage their HMOs — a third of whom own portfolios with over 20 properties.
The highest proportion of HMOs are in London and the South East (47%), followed by the East Midlands.
Rob Stanton, sales and distribution director at Landbay (pictured above), said: “Our survey results show continuing confidence in HMOs.
“Despite proposed rental reforms and local authority licensing schemes, the market remains resilient — with an ongoing housing shortage, demand is stronger than ever for decent and fairly managed house shares.
“HMO landlords have received a boost from falling utility bills; this means higher net rental, which can make it easier to borrow a greater amount against the property’s value.
“In addition, council tax banding for individual rooms in shared houses has been reversed so HMOs are classed as a single dwelling as before.
“As long as investors do their research thoroughly before making the leap, HMOs can give great returns.”
