Over the last five years landlords have endured significant regulatory changes. These include additional stamp duty levies, taxation changes, the introduction of minimum Energy Performance Certificates (EPCs) and the requirement for electrical certification reports – all of which will reduce the landlord’s profit from their portfolio of properties.
To offset the loss of income, landlords are looking for alternative ways to increase yields and rental income from their properties. This has led to many landlords converting some of their existing buy-to-let properties into Houses in Multiple Occupation (HMOs), purchasing existing HMOs or purchasing properties with the view to convert into HMOS. HMOs provide a higher yield and income than typical standard BTL properties due to the number of tenants and demand from students and professionals.