Are HMOs Still a Good Investment?

How has the Covid-19 pandemic and Brexit shaped the UK HMO property market? Sourced HMO Partner investigates.

Shared living is becoming increasingly popular, particularly amongst professionals who find it a cost-effective and social way to live. Our HMO specialists have identified HMO properties as the most reliable way to build a hands-off income, due to the stability of tenants and minimal management required.

During the first lockdown, investors started getting worried about valuations and viewings stood at a standstill. For the first time, we saw less than 60 10% mortgage providers for 1st time buyers, compared to over 650 providers at the start of 2020.

Waiting for the Market Crash

Contrary to what many believed, the market crash did not come and there was a boom in the market, as those who had not planned to move, decided they needed a more cost-effective and social way of living.

Mortgage approvals rose to the highest in nearly 13 years with interest rates as low at 0.1%. In the second lockdown, the market started stabilising, the construction industry continued and the desire for more space shifted the market heavily.

End of 2020

At the end of the year, we saw a rise in housing prices of £15,000 and a market growth of 6.16%. At Sourced, we raised more than £10m for projects and have helped many individuals to build a profitable HMO portfolio by providing them with insights on the current state of the economy, predictions for the future, full training and support and dedicated HMO mentors, to help them every step of the way.

“I joined Sourced HMO Partner because of their hands-off approach to investing in HMOs.” Lydia, Sourced HMO Partner

Starting Fresh in the New Year

Given the predicted changes to demographics and the fact that housing supply levels are not meeting demands, it is reasonable to think that multitenant living may be required even more in the future.

Our Predictions

By the end of 2021, our HMO experts expect a 1% increase in house prices and banks to provide 5% and 10% deposits for 1st time buyers. With Covid-19, the trend swayed to more affordable housing in the community, making HMOs one of the most desired property investment strategies. As a result, we expect a sharp increase in the number of professionals living in HMOs.

No Experience Needed

At Sourced HMO Partner, we believe that anyone with the right skillset and attitude can be successful in the property industry. Our goal is to help time-poor property enthusiasts, to earn a hands-off income from HMOs by utilising the most profitable strategies. and a plan tailored to their needs. Become a HMO Partner to earn a passive income of £50,000 – £150,000 and enjoy the lifestyle you desire.

Find out more about Sourced HMO Partner and get in touch today.

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