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With the returns on investment up to 20%, it’s easy to see why houses in multiple occupation (HMOs) have become so popular over the last few years. The demand for affordable housing is increasing exponentially in most large towns and cities and there is currently a lot of pressure on the housing market to supply what’s needed; namely, cheap and flexible living possibilities for a variety of different tenant types.
It is more common now that people stay single for longer, average income has not increased in line with rental increases, people want to be more flexible with work and therefore need a more flexible accommodation to live in.
Renting by the room alleviates a lot of the pressure that is currently placed on the UK’s housing stock. The main reasons for this is that they are more affordable and it increases capacity. If we take a look at an average family home, more often than not this can provide accommodation for 5 or 6 individuals, from social housing tenants to professional tenants.
It is expected the demand for this type of accommodation will continue to grow due to the ever growing population. As a nation we simply aren’t building enough homes and so that bring what would be single let properties into the HMO domain, we are creating more suitable accommodation for more people.