We use cookies to give you the best possible experience on our website. If you continue without changing your settings, we'll assume that you're happy to receive all the cookies on our website. However, you can change your cookie settings at any time.

Your Privacy

When you visit any website, it may store or retrieve information on your browser, mostly in the form of cookies. This information might be about you, your preferences or your device and is mostly used to make the site work as you expect it to. The information does not usually directly identify you, but it can give you a more personalised web experience.

Because we respect your right to privacy, you can choose not to allow some types of cookies. Click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience of the site and the services we are able to offer.

Strictly Necessary Cookies


These cookies are strictly necessary for the Website to work properly and for us to keep it secure. They are needed to allow users to use the Website and its features, including to move between pages of the website.

These cookies are required

Performance and analytical cookies

These cookies allow us to collect certain information about how a user navigates the Website. These cookies collect information that is used either in aggregate form to help us understand how our site is being used or how effective are marketing campaigns are, or to help us personalise our site for you. We use Google analytics and Bing 1st party cookies, DoubleClick 3rd party cookies and Hotjar cookies for reporting purposes.

Cookie Name Purpose More Information
Bing Ads mui(x), _uet(x) Remarketing script and conversion tracking
DoubleClick Cookies _ide, _nid, _sid,
_dsid, _flc,
_aid, _taid
These are 3rd party cookies served by DoubleClick. They serve adverts to visitors based on the websites they've been to previously. Click here for more information about DoubleClick and how to disable this cookie.
Google Analytics _utm(x), _ga(x),
_gid, amp_token
These cookies are used to collect information about how visitors use our website. They keep track of when a visitor enters and leaves the website and any search engines and keywords that are used, including any personal and/or sensitive data. Click here for more information about Google Analytics cookies.
Hotjar _hj(x) These cookies are used to record anonymous videos about how visitors use our website. They keep track of how visitors engage with pages on our website. Click here for more information about Hotjar and how to disable this cookie.

Marketing cookies

These cookies are used to make advertising messages more relevant to you. We may use this data to tailor the marketing and ads you see on our own and other websites and mobile apps, including social media.

Commercial Finance

Ask the Experts: How are HMOs performing in light of the buy-to-let changes?

Buy-to-let investors are snapping up HMOs (houses in multiple occupation) as they look for higher-performing and less expensive properties, according to a recent industry report.

HMOs and multi-let properties performed particularly well in the second quarter of this year, with analysis across the buy-to-let market revealing much lower values for these kinds of properties when compared with the property market overall, according to the report by a leading mortgage broker.

In fact, a survey carried out at the end of last year with buy-to-let landlords suggested that over half would consider investing in HMOs if it helped to protect their portfolio, and the current performance in the HMO sector would suggest that some have taken this approach as an alternative to the traditional single-let property.

HMOs are homes for three or more people, who are not related, and which usually have a shared kitchen or bathroom, with separate, rented bedrooms. According to the recent industry research, they can currently achieve rental yields of more than 10 per cent, making them a popular investment choice, despite the various changes that have been introduced to curb the buy-to-let sector.

Investors looking into renting out HMOs will have to think carefully about the surrounding area; other nearby types of property, transport links and local amenities. Landlords will also have to speak to their local council about and planning permission or licensing regulations that may be required. A HMO must have a licence if it is three or more storeys high, or is occupied by five people or more.

Some councils, such as Cardiff and Bath, have put restrictions in place to limit the number of HMOs, so it’s important to check with the local council, as rules can vary considerably in different regions.

However, providing landlords do their homework, HMOs could offer a great opportunity. Many university cities in the UK have proved popular for investors looking at these kinds of rental houses, because of their large student populations, and we often see HMOs picked up at auction by landlords in these areas.

Last month, we introduced a specialist buy-to-let product, designed for investors and landlords looking to secure finance on HMOs and semi-commercial property, and continue to evolve and adapt our products for the buy-to-let market, applying our usual common sense philosophy.

Find out more about funding for HMOs.