Investors Make 40% Better Returns On HMOs than Standard Buy-To-Lets

Houses in multiple occupation (HMOs) rented to young professionals or key workers offer a better return on investment than standard buy-to-let by as much as 40%, according to an analysis for property investment franchise Platinum Property Partners. The analysis found that HMOs also outperformed other investment classes such as equities, gilts, commercial property and cash over a four-year period from 2010-14. Buy-to-Let outperformed all other asset classes, according to the research ‘Investor returns compared’, but HMOs rented to young professionals and key workers did even better. Over the four years, they offered a total return on equity of 108%, compared to 77% for a standard single-occupancy buy-to-let property (with a 75% loan-to-value mortgage). Read more on the Housing Excellence website.