HMOs deliver higher gross yields (typically 8–12%) but need Article 4 planning awareness, HMO licence (mandatory for 5+ occupiers), and higher management overhead. Not all areas permit new HMOs, check local Article 4 directions before buying.
Investment term
HMO
A single house let to 3+ unrelated tenants sharing facilities.
Also known as
House in Multiple Occupation
Related investment terms
More from this category
BTL
Buying residential property to rent to tenants.
Cash-on-cash return
Annual net cashflow as a percentage of the total cash you invested.
Gross yield
Annual rent as a percentage of property price, ignores costs.
NHBC
The UK's leading new-home 10-year warranty provider.
Off-plan
Buying a property before it's built.
PBSA
Student housing built and operated professionally.
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