.avif)
-
17/12/25 3:30 pm
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
The North West has the highest share of HMOs in the UK while landlords in the North East can expect the best yields.
Lendlord’s latest report for Q4 2025 reveals that the North West has the highest share of HMOs at 17%, with Greater London just behind at 16%. It points to a regional shift from the capital’s dominance to North West growth as the HMO market matures.
However, this could change as a number of North West councils have recently taken action to clamp down on HMO growth. Sefton, Bolton, Oldham and Bury have all introduced Article 4 directions to prevent small HMOs being converted without planning permission, while Preston Council is consulting on plans to bring the rule in next year.
Despite the North East showing the highest average yield of 15.1% on annual rent of £35,194 (slightly down from 15.4% in Q4 2024), the region has one of the lowest shares of HMOs at 3.6%. Average HMO yield across the UK currently stands at 9.6% (down from 10.4%) due to property values rising faster than rents, says Lendlord.
Drawing on sample data of 1,158 HMO properties, the firm found the highest average HMO rent is in London (£55,017 with 8% yield) followed by the South East (£45,450 – 9.4% yield) and East of England (£42,627 – 10.8% yield) with the lowest in Northern Ireland (£15,300 – 9.5% yield). Lendlord flags an inverse correlation between property values and yields, with the lowest in London due to high property values.
Rent growth outpacing inflation and strong tenant demand meant average annual rent was up 18.9% to £33,591 last year, with the highest rent increase of 19.5% seen in Greater London.
Co-founder and CEO Aviram Shahar says: “The importance of HMOs to property investors has never been clearer and our Q4 2025 figures highlight that yields have remained fairly constant year on year with the average annual rent increasing by an impressive £5,000 in just one year.”
Tags:
.avif)
Comments