South East holds greatest HMO opportunities, despite London having most stock

According to the latest market analysis by Revolution Brokers, there are currently just shy of 56,000 HMOs registered across England.

13,528 of these are found within the capital, meaning that London alone accounts for 24% of the national total.

The East Midlands isn’t far behind, where a total of 10,737 HMOs sees the region account for 19% of the national total.

The South West (16%), the South East (12%) and the West Midlands (10%) also account for double-digit market shares of the nation’s HMO market.

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With 715 HMOs, the North East is home to just 1% of the nation’s total HMO housing stock.

When it comes to current HMO investment opportunities there are some 886 such properties currently listed for sale across England.

This time it’s the South East that accounts for almost a quarter of stock, with the 210 HMOs currently for sale equating to 24% of total listings.

There are 125 HMOs up for sale across the East Midlands, equating to 14% of total market stock, with the North West (13%), Yorkshire and the Humber (12%), South West (11%) and West Midlands (11%) also ranking high.

Founding Director of Revolution Brokers, Almas Uddin said, “When it comes to the HMO capital of the nation, London continues to dominate the market and it’s easy to see why.

“For a start, the capital is home to the greatest abundance of stock providing a superior level of choice to investors.

This high level of stock has been driven by the consistent demand for multiple occupancy rental properties from tenants and while initial investment costs may be higher than elsewhere across the country, stronger wage levels allow for a much stronger return where rental income is concerned.

“As the nation’s capital, there is also a revolving door of tenants, both domestic and international, moving to London to live and work. As a result, void periods are also far lower which again helps to maximise returns.”