Demand for HMOs rises 25% in last 10 years – and is likely to continue

Demand for HMOs rises 25% in last 10 years – and is likely to continue

Landlords are facing increasing demand for larger properties and HMOs to rent after a surge of the ‘sandwich generation’ households, where people are living in groups of six or more, according to online letting agent, Lets Rent.

According to recent stats, more than three million people now live in households with at least six other individuals and the Office for National Statistics revealed that there are now 543,000 crowded households. This has made it the fastest-growing category of housing, with a 25 per cent jump in ten years.

The ‘sandwich generation’ has attracted the nickname because they are not only caring for their children, but also their ageing parents. The difficulty of getting on to the housing ladder is one reason for the squeeze on space. With young people struggling to get on to the housing ladder, more and more have to live with their parents because they cannot afford a home of their own.

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Landlords in the PRS have always been quick to spot a need in the market and along with the increased demands for more affordable homes there has been a huge increase in the supply of HMO’s over the last few years. My concern is that many people enter the HMO market without really understanding the regulation and legislation that surrounds it. Done well this can be a lucrative market, albeit it demands a much higher level of management and often sees a high turnover.

To help those landlords/property investors who are considering developing HMOs to be compliant with Management Standards and other regulation LRS has put a series of useful articles in the Knowledge pool here – a must read for those new to the market and a good guide to existing landlords

Make certain to avoid tenants who have left landlords with rent arrears and damages by checking them out on LRS. You don’t think that this will be a problem? Read about the thousands of tenants who have be reported to LRS here

Author: LRS Data Control

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