Landlords with HMOs receive twice as much rent as those with non-HMO properties, new research from Aldermore has revealed.
The data, provided to Aldermore by Pegasus Insight, revealed HMO landlords generated average gross rental income of £120,283 over the past 12 months.
In contrast, non-HMO landlords generated average gross rental income of £61,846 during the same time.
The survey of 794 landlords found 30% of HMO landlords fell into the gross rental income bracket of £100,000 to £199,999.
In comparison, only 10% of non-HMO landlords were in this bracket.
One in eight, or 13% of HMO landlords, were in the highest gross rental income category of over £200,000.
Only 5% of non-HMO landlords were in this bracket.
“Whilst it’s common knowledge that HMO landlords tend to benefit from enhanced annual incomes and greater yields, the difference in scale here is major,” said Jon Cooper, director of mortgages at Aldermore.
"The numbers here are a timely reminder of how attractive HMOs can be as an asset class for many landlords across the country.”
