HMOs tipped to be the favourite with investors in 2016

New research shows that houses in multiple occupation (HMOs) are set to be the most popular type of investment for property investors this year.

Shawbrook Bank has just released the findings of its latest survey, examining the investment expectations of its property investor clients and their wider outlook for 2016.

The findings reveal that a third of those surveyed cited HMOs as their preferred property type, which is almost double that of July 2015 when only 16% of investors responded in the same way.

The second most favoured property type in this year’s survey was terraced housing (28%), followed by flats and maisonettes (22%).

Karen Bennett, sales and marketing director of commercial mortgages at Shawbrook, said:

“We’ve seen a surge of interest in HMOs over the past year and our recent broker and client barometers confirm a big appetite in the market.

“This asset class has undergone significant change over the past decade with some very clear tenant and investor profiles emerging to bring some real quality to the sector.

“Whilst the high yields make for an attractive investment, caution must be taken with regard to planning and licensing requirements, along with the challenges and pitfalls of the valuation process.

“Working with a professional broker is a sound strategy in order to take advantage of the opportunities on offer for borrowers looking to expand into this market, and their knowledge and experience bring a huge amount to the table when trying to achieve a good outcome for the borrower.”

 

You may also like to read:

HMOs - what are they and how to finance them? 

Fee-free remortgage of licensed student-let HMO

Buy to let remortgage of large HMO to raise capital for further purchase

 

23rd March 2016