Demand varies between areas, however East of England has seen a staggering 48% increase in demand. South East and Outer London have increased by 41% and 40% respectively.
In fact, on average just 6% of landlords have reported a decrease in decline during the last three months.
“Market trends have shown that renting has become the new norm,” says Martin Roche of HMO Property Sourcing Ltd. “In addition, a growing number young professionals would rather rent a room within a HMO than a whole property – demand has increased by 23%.”
Increase in Demand for Rental Options
This buoyant rental market is right to be confident. The latest data from Savills indicates a bright future for the buy-to-let sector.
It shows that 71% of those born in 1960 would own their own home by the time they were 40 years old. Just 47% of people born in 1990 are predicted to own their own home at this age – for the first time. The majority will be in rented accommodation.
HMOs offer the perfect solution: independence and cost effectiveness with the flexibility to save for the future if desired.
Martin adds: “As the level of homeownership falls, we are seeing a growing number of renters. We fill our HMOs almost immediately, always selecting professional, credible tenants.”
The current market offers an ideal scenario for HMO investors – scope for capital growth as well as a positive and growing tenant demand.
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