The North East offers the highest rental yield for houses in multiple occupation (HMOs), at 15.4%, according to a report.
According to Lendlord’s Q4 2024 HMO report, which collates data from 1,126 HMO properties, this was followed by Wales at 11.4% and the East of England at 11.2%.
The East Midlands had the lowest HMO rental yield at 8.5%, followed by the South West at 9.5% and West Midlands at 9.9%.
The average rental yield across the regions comes to around 10.4%.
Looking at property values, London had the highest average property value at £660,227, followed by the South East at £436,146. Northern Ireland has the lowest average property value at £125,400.
The report added that there is a 5.3 times value difference between the highest and lowest average property values.
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The average property value across all regions stands at £285,279.
The highest annual HMO rent is £46,041 in the South East, and the lowest annual HMO rent is £13,056 for Northern Ireland. The average annual HMO rent is £28,248.
Greater London accounts for 20.6% for all HMOs, followed by the North West at 15.1% and West Midlands at 11.8%.
Aviram Shahar, co-founder and CEO of Lendlord, said: “The HMO market remains a cornerstone of the UK’s rental sector, offering significant opportunities for landlords and investors. However, maximising its potential requires clear, data-driven insights.
“This report highlights key trends and regional disparities, providing landlords and brokers with the information they need to make informed, strategic decisions.
“At Lendlord, we’re committed to leveraging technology to simplify property management and empower smarter investment choices, ensuring our users can confidently navigate the complexities of the market.”
