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What No One Tells You About HMOs

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Manage episode 500052076 series 3309995
Content provided by The Expat Property Guy. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by The Expat Property Guy or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

#230

I'd Like Help With Setting My Goals

Leave a review
Join our WhatsApp group / access 37 Question Due Diligence Checklist / 23 Step Guide to Buying Property at Auction
Instagram

Exclusive Property Engine discounts (Code: EXPAT)
Starter package: 30 day trial
Pro package 30 day trial, then 3 months 1/2 price, Ultimate package, 1/2 price 3 months

Do you invest in Houses of Multiple Occupation?

Have you thought about investing in HMOs?

Are you still thinking of investing in HMOs?

This is the most up to date appraisal of the HMO market you’ll find anywhere.

Richard Nicholls knows A LOT about HMOs.

He's the leading HMO valuation and sales expert in the UK

Richard has just started the very first auction house dedicated exclusively to HMOs so I had to invite him on to tell us about HMO X.

During the episode, we discuss:
Evolution of the HMO Market: Major milestones affecting HMOs over recent years include the Liz Truss budget, Covid, changes in lending practices, cost of living increases, and multiple government policy shifts, all of which have reshaped how HMOs are valued and traded.

Current Market Challenges: making it harder for new entrants and casual investors.

The Fading BRR Model: The once-popular Buy, Refurbish, Refinance (BRR) model for 5-6 bed HMOs is becoming unviable due to increased acquisition and refurbishment costs combined with lower refinancing outcomes.

Shifts in Supply and Demand: There’s an uptick in poorly prepared HMOs hitting the market while high-quality, ready-made HMOs are attracting new types of buyers who are willing to leave in more capital for yield stability.

Rental Price Trends: Boutique, high-end HMO rents surged post-pandemic but are now stabilizing as those premium features become the new market norm. There’s no expectation for rent spikes in the next year or so, but they remain at elevated levels compared to pre-pandemic.

Exit Strategies & HMO X: The UK’s first auction house dedicated solely to HMOs

Selling & Valuation Advice: Selling a boutique or newly developed HMO straight away isn’t always profitable, especially if it was over-spec’d or over-leveraged. Proper valuation, realistic expectations, and medium-term planning are crucial.

Social Housing Considerations: Transitioning HMOs to social housing use is not a value-adding strategy. It’s essential to ensure compliance with mortgage terms and insurance.

· Keys to Success Now: Professionalization is essential—landlords need to optimize their properties, closely manage running costs, maintain high standards, and focus sharply on tenant demand to maintain margins and avoid pitfalls in a tougher, more regulated market.

Keywords
HMO market, houses of multiple occupation, HMO valuation, HMO auctions, HMO X, UK property investment, remote property investors, Liz Truss budget, post-Covid property market, HMO lending, overseas HMO investors, capital gains tax landlords, stamp duty surcharge, buy-to-let alternatives, BRR model, commercial to residential conversion, Article 4 direction, gross yield HMOs, boutique HMOs, rent roll, HMO exit strategies, property health check, tenant demand assessment, new build HMO premium, property maintenance, social housing leases, Serco/ Mears/ Clea rsprings, mortgage compliance, legal pack for HMOs, energy efficiency in H

  continue reading

231 episodes

Artwork
iconShare
 
Manage episode 500052076 series 3309995
Content provided by The Expat Property Guy. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by The Expat Property Guy or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

#230

I'd Like Help With Setting My Goals

Leave a review
Join our WhatsApp group / access 37 Question Due Diligence Checklist / 23 Step Guide to Buying Property at Auction
Instagram

Exclusive Property Engine discounts (Code: EXPAT)
Starter package: 30 day trial
Pro package 30 day trial, then 3 months 1/2 price, Ultimate package, 1/2 price 3 months

Do you invest in Houses of Multiple Occupation?

Have you thought about investing in HMOs?

Are you still thinking of investing in HMOs?

This is the most up to date appraisal of the HMO market you’ll find anywhere.

Richard Nicholls knows A LOT about HMOs.

He's the leading HMO valuation and sales expert in the UK

Richard has just started the very first auction house dedicated exclusively to HMOs so I had to invite him on to tell us about HMO X.

During the episode, we discuss:
Evolution of the HMO Market: Major milestones affecting HMOs over recent years include the Liz Truss budget, Covid, changes in lending practices, cost of living increases, and multiple government policy shifts, all of which have reshaped how HMOs are valued and traded.

Current Market Challenges: making it harder for new entrants and casual investors.

The Fading BRR Model: The once-popular Buy, Refurbish, Refinance (BRR) model for 5-6 bed HMOs is becoming unviable due to increased acquisition and refurbishment costs combined with lower refinancing outcomes.

Shifts in Supply and Demand: There’s an uptick in poorly prepared HMOs hitting the market while high-quality, ready-made HMOs are attracting new types of buyers who are willing to leave in more capital for yield stability.

Rental Price Trends: Boutique, high-end HMO rents surged post-pandemic but are now stabilizing as those premium features become the new market norm. There’s no expectation for rent spikes in the next year or so, but they remain at elevated levels compared to pre-pandemic.

Exit Strategies & HMO X: The UK’s first auction house dedicated solely to HMOs

Selling & Valuation Advice: Selling a boutique or newly developed HMO straight away isn’t always profitable, especially if it was over-spec’d or over-leveraged. Proper valuation, realistic expectations, and medium-term planning are crucial.

Social Housing Considerations: Transitioning HMOs to social housing use is not a value-adding strategy. It’s essential to ensure compliance with mortgage terms and insurance.

· Keys to Success Now: Professionalization is essential—landlords need to optimize their properties, closely manage running costs, maintain high standards, and focus sharply on tenant demand to maintain margins and avoid pitfalls in a tougher, more regulated market.

Keywords
HMO market, houses of multiple occupation, HMO valuation, HMO auctions, HMO X, UK property investment, remote property investors, Liz Truss budget, post-Covid property market, HMO lending, overseas HMO investors, capital gains tax landlords, stamp duty surcharge, buy-to-let alternatives, BRR model, commercial to residential conversion, Article 4 direction, gross yield HMOs, boutique HMOs, rent roll, HMO exit strategies, property health check, tenant demand assessment, new build HMO premium, property maintenance, social housing leases, Serco/ Mears/ Clea rsprings, mortgage compliance, legal pack for HMOs, energy efficiency in H

  continue reading

231 episodes

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