HMO Demand Demographics

[KSH]

Hi All

I wonder if anyone has any thoughts on the particular demographics they see being responsible for the majority of HMO lets in future. Do you feel HMOs would still be in demand from students given the rising numbers of dedicated student high rises in some areas? Or do you feel that HMOs will have an increasing part to play in providing accommodation for those on low incomes, and professionals outside of London in certain northern areas? Would be interested to know your thoughts on what sort of person will be wanting to rent a room in a HMO going forward.

 

[Nicholas Wallwork]

We're dedicated to the professional market and there is increasing demand there. A good quality ensuite room (with shared kitchen) is the ideal cheaper alternative to a full on studio flat and a great stepping stone whilst saving the extra cash for their own property deposit. I see the HMO rental market demand increasing over the next 5-10 years as not enough property will be built and the young professionals coming through will have to live somewhere so the combination of good quality rooms vs lack of supply should keep this model extremely bouyant for some time in my opinion...

 

[KSH]

We're dedicated to the professional market and there is increasing demand there. A good quality ensuite room (with shared kitchen) is the ideal cheaper alternative to a full on studio flat and a great stepping stone whilst saving the extra cash for their own property deposit. I see the HMO rental market demand increasing over the next 5-10 years as not enough property will be built and the young professionals coming through will have to live somewhere so the combination of good quality rooms vs lack of supply should keep this model extremely bouyant for some time in my opinion...

Thanks Nicholas

I understand you focus mainly in the south and peripheral regions of London? Do you also see any demand for professional HMO tenants outside of this area? Ive always thought that the reason professionals are willing to rent rooms in HMOs is because of the hight costs of renting in London, and didnt think there was much demand from professional tenants outside of this area? Though please do correct me if im wrong.

 

[KGeeson]

I live in Oxfordshire in a market town and share a house with 2 other professionals. When I advertised the rooms to let there was a huge amount of interest. I also have friends in the same town who lives in a shared house (7 people in total i think!). The demand in this area definitely comes from young professionals (mainly 25-30 years old). Rent is just so high in this area, that to rent a property on your own is only achievable if you are prepared to have hardly any spare cash. HMOs will continue to be popular while house and rental prices are still high.

 

[KSH]

Thanks Guys, your responses are much appreciated. If anyone also has any experience in the North of England, and can comment on the kinds of tenants they get in their HMOs in these areas, that would be great.

 

[kchiggs]

No direct experience as a landlord but there are loads of places that attract professional tenants in the north. The key is to look near where they might work, this is usually in a city but not near the centre.