The HMO (House in Multiple Occupation) market in the UK and London has experienced significant growth in recent years. According to recent reports, the HMO market in the UK is expected to grow by 23% between 2021 and 2025, reaching a value of £23.7 billion. However, with the new government Rental Bill proposed changes, the HMO market’s future is uncertain.
The government’s proposed changes to the Renters Reform Bill aim to provide greater protection for tenants and ensure that they have access to safe and decent accommodation. However, some experts predict that these changes could negatively impact the HMO market. We can already see so many HMO landlords selling their properties as they don’t feel any support from government and its very far from government being grateful for all the landlords hard work in providing good quality private rented homes.
Despite the potential challenges posed by the Rental Bill proposed changes, I believe that the HMO market is likely to continue to grow in the long term. The Demand for good quality HMO rooms been only growing.
With rising property prices and an increasing demand for affordable good quality accommodation, HMOs offer an attractive investment opportunity for landlords. In addition, the HMO market has proven to be resilient during times of economic uncertainty, such as the COVID-19 pandemic. London, in particular, has a thriving HMO market due to its high population density and shortage of affordable housing.
Another trend that could impact the HMO market in the UK and London is the rise of co-living. Co-living properties offer a more communal living experience for tenants, with shared spaces and amenities such as kitchens, living rooms, and even coworking spaces. This trend could provide an alternative to traditional HMOs, particularly for younger renters who are looking for a more social and flexible living arrangement. We seen that huge co-living spaces with couple hundreds of rooms in the buildings does not work that well as slightly smaller ones. We seen some really nice and successful co-living places in Camden and Islington and I definitely believe its a very successful way forward.
In conclusion, the HMO market in the UK and London is likely to experience some challenges in the short term due to the proposed changes to the Rental Bill. And the HMO investors and HMO managers definitely won’t be bored this year with the removal of section21 notices and no fixed term tenancies.
However, the market’s long-term prospects remain positive. The HMO market has proven to be a resilient investment opportunity, and landlords who are able to adapt to the changing regulations are likely to see continued success in the coming years.