HMOs remain a popular investment for landlords. Because of recent changes in the Tax regime for Buy-To-Let investors and low yield profiles, many property investors have been acquiring residential assets (traditional houses).

Areas of Greater London Boroughs such as Croydon, Brent and Redbridge can carry initial purchase prices at or below the London average. Following redevelopment, planning and licensing developers can convert an existing dwelling into a House of Multiple Occupation (HMO) with a significant positive impact on the gross Rental Income whilst managing outgoings efficiently (i.e., individual Electric Meter installation).

We Value Bricks & Mortar / Investment or Yield

Bricks & Mortar Valuations are the most common type of HMO Valuations. They are commonplace if the property is a normal single (C3) dwelling and is based on the current market value and local comparables.

Commercial (Investment or Yield) Valuations take into account the achievable rental income and yield of the HMO. They  consider location and potential to sustain regular letting of individual rooms. They also account for repairs and management costs.