The North East offers the highest average yield (15.4%), according to an inaugural HMO data analysis report for the Q4 2024 by Lendlord.
Meanwhile, Greater London accounted for 20.6% of all HMOs analysed, which accounts for 20.6% of all HMOs analysed, leading in average property value (£660,227).
Drawing on data from 1,126 HMO properties, the report reveals regional trends in property values, rental yields, and market distribution.
The data highlights significant disparities in regional performance, with Greater London, while the North East offers the highest average yield (15.4%).
Key trends from the report include an inverse correlation between property values and yields.
The data indicated that the South East delivers the highest annual rental income at £46,041, while regions like the West Midlands (11.8% market share) and the North West (15.1% market share) play pivotal roles in the HMO landscape.
Aviram Shahar, co-founder and CEO at 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.”