A recent survey conducted by Landbay, a specialist buy-to-let (BTL) lender, has revealed that approximately half of landlords operating houses of multiple occupation (HMOs) rely exclusively on property investments for their income. The survey also revealed that close to 30% of respondents own HMO properties or portfolios, with a substantial 72% holding them through limited companies.

Interestingly, nearly half of these properties are self-managed by their owners, a significant third of whom oversee portfolios comprising more than 20 properties each. Notably, the most preferred size category for HMO portfolios falls within the range of four to 10 properties, encompassing 34% of respondents.

Geographically, the survey identified London and the South East as the regions with the highest concentration of HMOs, accounting for 47% of the total, closely followed by the East Midlands.

Reflecting on market sentiment, an HMO landlord stated, "Our company is very happy with our portfolio performance in London and we intend to continue at least for the present."

Rob Stanton, Landbay's sales and distribution director, commented on the survey results, expressing confidence in the ongoing resilience of the HMO market. He noted, "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."

Stanton highlighted additional factors contributing to the sector's stability, saying, "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."

Stanton concluded on a positive note, emphasizing the potential for significant returns from HMO investments, provided that investors conduct thorough research beforehand.