The Ultimate 27 HMO Investment Property Hotspots in 2020

HMO Property Investment Areas

⏱ 20 minute read

📅 Written on August 6th 2020

Looking to get started as a property investor?

Work your way through our 6 part property investing guide for beginners

Part 1:

 

How to create a property business plan

Part 2:

 

2020 Property Investment Strategies

Part 3:

 

Calculate Yield & ROI on Investment Property

Part 4:

 

Buying Property Through a Limited Company

Part 5:

 

Best HMO Investment Areas in the UK

Part 6:

 

How to flip a house as a property investor

Chapters

Chapter 1

This is the ultimate guide for the best area for HMO property investment in 2020. đŸ”„

 

And let me be clear about something:

 

This is NOT đŸ™…â€â™‚ïž your average “ best buy-to-let area” predictions post.

 

Yes, I’ll cover the data and show easy to understand breakdowns 📈 of the best areas for HMO property investment this year.

 

But you’re also going to see unique data that shows low property competition and high tenant demand.

 

So if you’re looking to find your next HMO property investment area, you’ll love 🏄 this new guide.

HMO Property Areas

I analysed over 324 data points for HMO property.

 

 

This includes Government sources, Rightmove, Zoopla, Office of National Statistics & more.

 

 

The data pull was during the global pandemic. House prices may be skewed to reflect the market.

 

 

The data pull was in July 2020 so also factor in timing & seasonal impacts. 

 

 

Lastly – I haven’t added article 4 over the areas analysed below so keep that in mind. 

 

 

In this brand new report you’ll learn:

Lets dive right into the findings.

Chapter 2

HMO Property Investments: Highlights and Key Findings

➕ Excluding London, rents are highest in Cambridge at £620 a month for a room. The cheapest rooms in Hull at £300 pcm and Aberdeen at £266 pcm

 

➕ The most affordable cities for Terraced houses are Sheffield (£153k), Nottingham (143k), Liverpool (122k) and Hull (109k). 

 

➕ The more expensive cities outside of London to buy a terraced house are Oxford (£477k), Cambridge (£397k) and Bath (401k)

 

➕ Portsmouth had incredible capital growth over the past 5 years at +16%. Others include Manchester (+10%), Leeds (8.1%), Warrington 4.29% with Aberdeen seeing a -8.56% decline over 5 years. 

 

➕ Glasgow, Liverpool & Leeds rank top for Terraced house prices vs room rent in terms of value for money.

 

➕ London is, of course, the worst for getting the most rental income VS house prices, offering the lowest ROI.

 

➕ Manchester (1806), Coventry (1213), Birmingham (1608) and Bristol (1212) have the highest supply of rooms available on the market. 

 

➕ Hull (236), Warrington (265), Bath (328), & Plymouth (334) having the least amount of room stock available on the market meaning less competition. 

 

➕ The highest tenant demand for rooms can be found in Manchester (1345), Bristol (1126), Glasgow (686), Edinburgh (668) and Birmingham (632).

 

➕ Warrington and Glasgow are the best places for room stock VS tenant demand. There’s 1.4 people for every room available in Warrington and 1.3 people for every room available in Glasgow.

 

➕ Competition is tough in Coventry, Hull, Birmingham and Leicester. All have up to 2.4 rooms available for every potential tenant / 0.4 people looking for every room.


➕ Manchester (73k), Nottingham (67k) and Birmingham (66k) have the highest amount of students in their cities.

Goal Setting Guide

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Are you struggling to find focus in your property business? Do you have a clear, tangible and measurable plan of action? Download this free handy goal setting guide that explores wherey you are today, your financial literal and north star lateral goals – and what you need to do to bridge that gap to meet your goals. 

Chapter 3

Where are the highest and lowest room rents in HMO Investment Properties in the UK?

Outside of London, HMO property rental rates for rooms are best in Cambridge, Glasgow, Bournemouth & Reading.

HMO room rents in the UK

As expected, rents are the strongest per room in London. đŸ’Ș

 

Outside of the capital northern, cities like Leeds are championing the way.  🏆

 

The average room rent in Leeds is £548 per month for a room. 

 

Surprisingly, Manchester is demanding ÂŁ468 a month. đŸ˜± I was a bit surprised it’s less than Leeds!

 

I expected this to be the highest in the north but seems not, especially considering house prices.

 

Liverpool is demanding higher rents than other northern cities such as Sheffield & Warrington by £10 per month. 

 

Not too surprisingly, Newcastle, Hull and Aberdeen have the lowest room rental rates for an HMO investment property. 

 

Typically the north-east ↗ and above have lower house prices, income and rental rates.

 

Southern towns âŹ‡ïž and cities typically dominate the higher rents.

 

There are some southern locations ranked quite low down the list which may be a surprise when compared to house prices.

 

To conclude room rates, excluding the very top and very bottom, there isn’t much difference in rents which vary from £400 to £550. 

 

This could make up to ÂŁ1k cashflow difference per year but when factoring in property prices.

 

This shows why northern cities give better returns as housing stock is typically cheaper. 👍

Chapter 4

Where is the cheapest place to buy a house? And the most expensive?

The cheapest place to buy a house is Hull. The most expensive outside of London, is Oxford.

If you’re looking to protect your initial money as much as possible and then buying a property in Oxford could wipe out your entire deposit. đŸ™…â€â™‚ïž

 

Especially when you factor in the rents you’ll get for a room.

 

More affordable cities in the UK include Sheffield Liverpool, Nottingham and Hull.

 

These cities demand a 25% deposit of around ÂŁ38,000 for example in Sheffield. đŸ’·

 

Remember these are average prices, meaning that some properties are higher. Some are lower.

 

This means finding properties below market value will enable you to add value through a refurb, or buying under the going rate. ⚒

 

It’s possible to buy properties in Liverpool, Hull & other northern cities for under £100k if you’re after a 3-bed terraced property, for example.

average detatched house price
average semi detatched house price
average terraced house price
average flat price

Chapter 5

Where are the highest property price increases over the past 5 years?

If you bought a property in Portsmouth 5 years ago, you are 16% better off in terms of capital growth. If you bought in Aberdeen, you’re 8.5% worse off.

property price increase over past 5 years

Although purchase prices and room rental rates are very important. ☝

 

It’s key to consider capital growth to ensure your property is increasing in value. 📈

 

In terms of the property cycle, the market over the past 5 to 10 years has been recovering since the 2008 recession. 

 

We’re due a mid-cycle wobble đŸ€Ș before an expected rise again at which point property prices crash again. 

 

The 18 year cycle has repeated itself many times in history and although is not exact science, it’s a good rough indicator 🧐 of what’s happening.

 

The Coronavirus Pandemic may change things, it’s a bit too early to tell at the time of posting this. 

 

Cardiff, Glasgow & Leicester have had great growth all over 10%+ over the past few years. Also holding very strong is Manchester at 10.76% and Nottingham at 10.5%

 

Some investors say that increases and decreases ripple outwards from London. đŸ™ïž

 

London has seen fantastic capital growth over the years, but has remained pretty flat since Brexit & Coronavirus. 

 

The question is đŸ€” – will northern cities and others outside of London continue to see capital growth and healthy gains.

 

It’s key to remember some places like Liverpool have barely recovered since their 2008 levels.

 

We’re only now just starting to see positive uplifts.

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wtfpropertyinvesting1.2K followers🏡 What The Flip: Property Investing đŸ—ïž S. Yorkshire 👇 YouTube & Newsletter 🌿 Giant Leaps Begin with Small Steps
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Should you buy in a limited company or in your own name? đŸ€·â€â™‚ïžâ  ⁠ This week I explore the key factors that affect whether a limited company is right for you. Different factors like tax, your income and your future property goals will make a difference. ⁠ ⁠ You should be thinking about:⁠ ⁠ ⚡ Are you a basic, higher or additional rate tax payer?⁠ ⚡ What long term plan do you have?⁠ ⚡ Have you thought about succession planning?⁠ ⚡ Do you require a salary or can you reinvest the profits?⁠ ⁠ It can be a little overwhelming when figuring it out. At the end of the day – speak to an accountant who will be able to sit down and understand your own individual circumstances. Ltd companies work in some scenarios and not in others so it\’s about checking in with your plans and finances to work out what is best for you. ⁠ ⁠ 👍 Double-tap and please subscribe to the channel!⁠ ⁠ PS – I also have a newsletter where I send out updates on property videos and my own projects that I\’m working on. Check it out on my website!⁠ ⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
4
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How to start a property business đŸ”„â â đŸ§ź New YT Vid – link in bio!⁠ ⁠ Continuing on from my beginners series to help brand new property folk looking to get started with no upsells and no BS – In this video, I run through 8 things to consider when starting your property business in the UK. ⁠ ⁠ It took a good year to create my property business plan, understand what strategies are best for me and eventually starting the property company structure which leads me to today where I\’m ready to make my first move and really get started and hit the ground running. ⁠ ⁠ You should be thinking about:⁠ ⁠ ⚡ What\’s your long term aim?⁠ ⚡ What strategies are best for you?⁠ ⚡ How much time do you have?⁠ ⚡ Are you building your knowledge?⁠ ⚡ Understanding your area⁠ ⚡ Speak to professionals (accountant, broker)⁠ ⚡ Understand your numbers⁠ ⚡ Get out there and do it!⁠ ⁠ It can be a little overwhelming when getting started. This video will help give you some focus on making your next steps⁠ ⁠ 👍 Double-tap and please subscribe to the channel!⁠ ⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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I\’ve explored 8 risk factors for next year đŸ”„â â đŸ§ź New YT Vid – link in bio!⁠ ⁠ Will the market crash next year? Nobody knows. Every video, every podcast, every news headline – is all opinion. Expert or not. I\’ve just released a new YT video looking at the factors that COULD make some kind of impact.⁠ ⁠ The bottom line though – property is a long game so if you\’re strategy fits, keep calm and carry on. If you believe in the 18-year property cycle, we\’re meant to be in the mid-cycle dip right now. The reality is, we don\’t really know. There are too many uncertainties in unprecedented times. It could go up or down, but historically, property goes up over the long term. ⁠ ⁠ As business owners and property investors, we can monitor horizon risks, however:⁠ ⁠ ⚡ Understanding pent-up demand⁠ ⚡ When the stamp duty tax break ends⁠ ⚡ Brexit & market uncertainty⁠ ⚡ The end of the furlough scheme⁠ ⚡ Rising unemployment⁠ ⁠ These may have some effect next year⁠ ⁠ Have a look through the video – see what you think and let me know! Do you have any thoughts on next year?⁠ ⁠ ⁠ 👍 Double-tap and please subscribe to the channel!⁠ ⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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My first 30 days on YouTube đŸ”„â â đŸ“č⁠ ⁠ My original goal this year was to start a podcast but without a big audience, it can be very hard to gain velocity, and there\’s been an influx of new property podcasts recently, so I pivoted to a platform where fewer property people are. ⁠ ⁠ What I learnt & achieved from being on YouTube for 30 days⁠ ⁠ ⚡ I filmed, edited and uploaded 6 videos⁠ ⚡ I gained 15 subscribers⁠ ⚡ The videos were viewed almost 500 times in 1 month⁠ ⚡ The channel got over 16 hours of watch time⁠ ⚡ One video really popped (250+ views) which was about using Notion⁠ ⁠ The aim is to keep uploading valuable videos and enjoy the process of scriptwriting, filming and editing my property knowledge & combining my business skills, risk management & UK financial services & banking experience on probably the most vulnerable platform in front of a camera and see where it goes!⁠ ⁠ — The Pros–⁠ ➕ I\’ve had some people reach out who really resonated with some of the videos which was awesome. Mainly from newer investors who find my beginners journey very relatable. ⁠ ⁠ ➕ I\’m really happy with the engagement on the videos so far, I\’m pushing my editing skills on every video. ⁠ ⁠ — The Cons –⁠ ➕ It\’s hard work managing all the ideas, scripts and then filming & editing which from start to finish can take 6 to 8 hours for an 8-minute video.⁠ ⁠ ➕ It\’s hard not to get wrapped up in the YT analytics questioning why a video hasn\’t got views or checking to see how many likes you have. I need to do this less. ⁠ ⁠ ⁠ 👍 Double-tap and please subscribe to the channel!⁠ ⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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NEW YOUTUBE VIDEO LIVE! For those who are new to property, this video simplifies ROI & Yield đŸ”„â  ⁠ ⁠ Back to basics this week! I have a range of followers (thank you!) from experienced veterans but also people newer who have reached out to me so this one is for you!⁠ ⁠ This video for beginners explored in 6 minutes:⁠ ⁠ ⚡ How to simply calculate ROI + example⁠ ⚡ How to easily work out Yield + example⁠ ⚡ A framework of what costs to include⁠ ⚡ I also explore why everyone\’s definition of ROI is different. ⁠ ⁠ Full Guide: wtfpropertyinvesting.com/how-to-calculate-property-yield-roi⁠ ⁠ If you don\’t fancy watching the video – here are the calculations:⁠ ⁠ ➕ ROI = Annual Profit / Money Put In⁠ ➕ Yield = Annual Rental Income / Price of Poperty⁠ ⁠ You\’d shocked to know that many property investors (the ones who aren\’t engaged in the awesome Instagram community) will buy a property off the cusp without running the numbers. Sometimes there are hidden costs that are unexpected that blow your budget but you can show:⁠ ⁠ ➕ Business Sense⁠ ➕ Risk Management⁠ ➕ Financial Understanding⁠ ⁠ by running your numbers. This will ensure you don\’t put yourself at risk of going into negative equity on a refurb project. The key is understanding those numbers, buying at the right price and not overspending the budget you set in the refurb to achieve your correct ROI – with a bit of contingency baked in. ⁠ ⁠ 👍 Double-tap and let me know if you found this useful!⁠ ⁠ PS. I have a newsletter over on my website where I send out weekly thoughts and interesting books as well as share my own property journey as a beginner. Link in bio.⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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NEW YOUTUBE VIDEO LIVE! I analysed over 324 data points for the best HMO areas in the UK! đŸ”„â  ⁠ This powerful data explores:⁠ ⁠ ⚡ Room Rental Rates⁠ ⚡ House Prices VS Room Rates⁠ ⚡ Supply VS Demand⁠ ⁠ Full Guide: wtfpropertyinvesting.com/hmo⁠ ⁠ If you don\’t fancy watching the video – the winner is Warrington with 1.4 people looking for every room available meaning there\’s lower competition.⁠ ⁠ Northern cities did very well with the likes of Leeds, Sheffield, Manchester, Nottingham and Liverpool all showing strong possibilities (Beware of Article 4 though).⁠ ⁠ Southern cities, naturally have strong rents but not huge compared to the north, the gap is quite small. And London although has great rents, has low ROI & Yield due to high property prices.⁠ ⁠ Check out the video for the high-level findings of the data, let me know what you think!⁠ ⁠ 👍 Double-tap and please check out the YouTube video!⁠ ⁠ PS. I have a newsletter over on my website where I send out weekly thoughts and interesting books as well as share my own property journey as a beginner. Link in bio.⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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Something a little different today. SEO or otherwise known as search engine optimisation 🚀 & DOMINATING google. ⁠ ⁠ Although new to the property world, I work in a bank by day and also freelance as a graphic designer / SEO expert.⁠ ⁠ I have been doing this for about 10 years đŸ”„ ⁠I\’m already seeing some killer results from my website for big terms. Still lots of work to do though!⁠ ⁠ I knew as a part of getting started in property, I wanted to document the journey and build a solid brand to do that in the process, so I can share valuable and honest content as a way to give back to the Instagram community that taught me so much.⁠ ⁠ Separately, I also teach the skills needed to learn SEO over on skillshare.com with a video course that\’s about 1hr 50 minutes. It\’s relatively new but some good reviews coming through already. ⁠ ⁠ To give back to the more experienced developers on here – if you\’re struggling to get traffic via Google – I\’ve attached a completely FREE link to my SEO class if you click on the link in my bio you\’ll see a button to go to my skillshare.com class.⁠ ⁠ The link is a 2-week free trial on Skillshare (so just remember to cancel your skillshare membership once you\’re done), although there are tonnes of other creators on there who teach photography, project management and other stuff so might be useful for your business!⁠ ⁠ 👍 Double-tap and please check out the class for free! No strings.⁠ ⁠ PS. I have a newsletter over on my website where I send out weekly thoughts and interesting books as well as share my own property journey as a beginner. Link in bio.⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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NEW YT VID: Giant leaps begin with small steps. I see loads about \’goal setting\’ – nothing about habits đŸ€·â€â™‚ïžâ  ⁠ Amongst all the property content I see online, there\’s loads on goal setting and everybody is talking about it. It\’s healthy to set goals and set your direction. This week I explore \’Atomic Habits\’ by James Clear and cover the top summary from the book. It\’s really fascinating! đŸ”„â  ⁠ This amazing book talks about how goal setting is merely determining the outcome/s you desire. Setting a goal doesn\’t guarantee you\’ll actually meet it…⁠ ⁠ Instead, we should be focusing on systems, processes and forming those habits that bring us closer to those goals we set. ⁠ ⁠ Please check it out! Link in bio⁠ ⁠ wtfpropertyinvesting.com/youtube⁠ ⁠ Even by focusing on tiny changes, over time, and with the compounding effect – you could see remarkable results. ⁠ ⁠ 👍 Double-tap and let me know if you focus only on \’goals\’ our \’outcomes\’ or if you also focus on your processes and habits to get there!⁠ ⁠ PS. I have a newsletter over on my website where I send out weekly thoughts and interesting books as well as share my own property journey as a beginner. Link in bio.⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo

Chapter 6

Where is the best place to buy an HMO property?

Glasgow, Liverpool and Leeds would give you the best bang for your buck comparing house prices VS room rents when looking at HMO property.

Now, this is where it gets really interesting! đŸ„ł

 

I’ve looked at property prices for terraced and semi-detached houses.

 

Then compared them against average room rental rates to create an indicator. The higher the better. 

 

This is a custom figure 📊, taken by looking at the room rent for the area.

 

Dividing it by the average property price.

 

Then multiplying by 1000 to make the number a bit more friendly to look at. 

 

Rather than looking separately at property prices and looking at the cheapest area to get more for your money.

 

Or looking at the best rents but being priced out of an area.

 

This graph puts those two together to work out the strongest cities combining these two data points. 

 

Towns & Cities in the north are dominating the top rankings here typically where house prices are lower.

 

But, rents remain higher.

 

Glasgow, Leeds and Liverpool all performing well along with Manchester, Nottingham and Sheffield. 

 

Quite expectedly a lot of southern locations which have high property prices don’t vary too much in rent (+/- £100).

 

This has a big impact on whether a deal would work. For example Liverpool is a 3.6x better area than what you’d find in London for the money on a terraced house.

best HMO areas
best hmo areas uk

Supply VS Demand

Supply and Demand is your best friend when it comes out to evaluating a property investment area. Some areas are supersaturated with HMOs. Others are now. 

Check them out below

rent to rent
WTFPROPERTYINVESTING1.2K followers🏡 What The Flip: Property Investing đŸ—ïž S. Yorkshire 👇 YouTube & Newsletter 🌿 Giant Leaps Begin with Small Steps
8
51
Should you buy in a limited company or in your own name? đŸ€·â€â™‚ïžâ  ⁠ This week I explore the key factors that affect whether a limited company is right for you. Different factors like tax, your income and your future property goals will make a difference. ⁠ ⁠ You should be thinking about:⁠ ⁠ ⚡ Are you a basic, higher or additional rate tax payer?⁠ ⚡ What long term plan do you have?⁠ ⚡ Have you thought about succession planning?⁠ ⚡ Do you require a salary or can you reinvest the profits?⁠ ⁠ It can be a little overwhelming when figuring it out. At the end of the day – speak to an accountant who will be able to sit down and understand your own individual circumstances. Ltd companies work in some scenarios and not in others so it\’s about checking in with your plans and finances to work out what is best for you. ⁠ ⁠ 👍 Double-tap and please subscribe to the channel!⁠ ⁠ PS – I also have a newsletter where I send out updates on property videos and my own projects that I\’m working on. Check it out on my website!⁠ ⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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How to start a property business đŸ”„â â đŸ§ź New YT Vid – link in bio!⁠ ⁠ Continuing on from my beginners series to help brand new property folk looking to get started with no upsells and no BS – In this video, I run through 8 things to consider when starting your property business in the UK. ⁠ ⁠ It took a good year to create my property business plan, understand what strategies are best for me and eventually starting the property company structure which leads me to today where I\’m ready to make my first move and really get started and hit the ground running. ⁠ ⁠ You should be thinking about:⁠ ⁠ ⚡ What\’s your long term aim?⁠ ⚡ What strategies are best for you?⁠ ⚡ How much time do you have?⁠ ⚡ Are you building your knowledge?⁠ ⚡ Understanding your area⁠ ⚡ Speak to professionals (accountant, broker)⁠ ⚡ Understand your numbers⁠ ⚡ Get out there and do it!⁠ ⁠ It can be a little overwhelming when getting started. This video will help give you some focus on making your next steps⁠ ⁠ 👍 Double-tap and please subscribe to the channel!⁠ ⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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I\’ve explored 8 risk factors for next year đŸ”„â â đŸ§ź New YT Vid – link in bio!⁠ ⁠ Will the market crash next year? Nobody knows. Every video, every podcast, every news headline – is all opinion. Expert or not. I\’ve just released a new YT video looking at the factors that COULD make some kind of impact.⁠ ⁠ The bottom line though – property is a long game so if you\’re strategy fits, keep calm and carry on. If you believe in the 18-year property cycle, we\’re meant to be in the mid-cycle dip right now. The reality is, we don\’t really know. There are too many uncertainties in unprecedented times. It could go up or down, but historically, property goes up over the long term. ⁠ ⁠ As business owners and property investors, we can monitor horizon risks, however:⁠ ⁠ ⚡ Understanding pent-up demand⁠ ⚡ When the stamp duty tax break ends⁠ ⚡ Brexit & market uncertainty⁠ ⚡ The end of the furlough scheme⁠ ⚡ Rising unemployment⁠ ⁠ These may have some effect next year⁠ ⁠ Have a look through the video – see what you think and let me know! Do you have any thoughts on next year?⁠ ⁠ ⁠ 👍 Double-tap and please subscribe to the channel!⁠ ⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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My first 30 days on YouTube đŸ”„â â đŸ“č⁠ ⁠ My original goal this year was to start a podcast but without a big audience, it can be very hard to gain velocity, and there\’s been an influx of new property podcasts recently, so I pivoted to a platform where fewer property people are. ⁠ ⁠ What I learnt & achieved from being on YouTube for 30 days⁠ ⁠ ⚡ I filmed, edited and uploaded 6 videos⁠ ⚡ I gained 15 subscribers⁠ ⚡ The videos were viewed almost 500 times in 1 month⁠ ⚡ The channel got over 16 hours of watch time⁠ ⚡ One video really popped (250+ views) which was about using Notion⁠ ⁠ The aim is to keep uploading valuable videos and enjoy the process of scriptwriting, filming and editing my property knowledge & combining my business skills, risk management & UK financial services & banking experience on probably the most vulnerable platform in front of a camera and see where it goes!⁠ ⁠ — The Pros–⁠ ➕ I\’ve had some people reach out who really resonated with some of the videos which was awesome. Mainly from newer investors who find my beginners journey very relatable. ⁠ ⁠ ➕ I\’m really happy with the engagement on the videos so far, I\’m pushing my editing skills on every video. ⁠ ⁠ — The Cons –⁠ ➕ It\’s hard work managing all the ideas, scripts and then filming & editing which from start to finish can take 6 to 8 hours for an 8-minute video.⁠ ⁠ ➕ It\’s hard not to get wrapped up in the YT analytics questioning why a video hasn\’t got views or checking to see how many likes you have. I need to do this less. ⁠ ⁠ ⁠ 👍 Double-tap and please subscribe to the channel!⁠ ⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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NEW YOUTUBE VIDEO LIVE! For those who are new to property, this video simplifies ROI & Yield đŸ”„â  ⁠ ⁠ Back to basics this week! I have a range of followers (thank you!) from experienced veterans but also people newer who have reached out to me so this one is for you!⁠ ⁠ This video for beginners explored in 6 minutes:⁠ ⁠ ⚡ How to simply calculate ROI + example⁠ ⚡ How to easily work out Yield + example⁠ ⚡ A framework of what costs to include⁠ ⚡ I also explore why everyone\’s definition of ROI is different. ⁠ ⁠ Full Guide: wtfpropertyinvesting.com/how-to-calculate-property-yield-roi⁠ ⁠ If you don\’t fancy watching the video – here are the calculations:⁠ ⁠ ➕ ROI = Annual Profit / Money Put In⁠ ➕ Yield = Annual Rental Income / Price of Poperty⁠ ⁠ You\’d shocked to know that many property investors (the ones who aren\’t engaged in the awesome Instagram community) will buy a property off the cusp without running the numbers. Sometimes there are hidden costs that are unexpected that blow your budget but you can show:⁠ ⁠ ➕ Business Sense⁠ ➕ Risk Management⁠ ➕ Financial Understanding⁠ ⁠ by running your numbers. This will ensure you don\’t put yourself at risk of going into negative equity on a refurb project. The key is understanding those numbers, buying at the right price and not overspending the budget you set in the refurb to achieve your correct ROI – with a bit of contingency baked in. ⁠ ⁠ 👍 Double-tap and let me know if you found this useful!⁠ ⁠ PS. I have a newsletter over on my website where I send out weekly thoughts and interesting books as well as share my own property journey as a beginner. Link in bio.⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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NEW YOUTUBE VIDEO LIVE! I analysed over 324 data points for the best HMO areas in the UK! đŸ”„â  ⁠ This powerful data explores:⁠ ⁠ ⚡ Room Rental Rates⁠ ⚡ House Prices VS Room Rates⁠ ⚡ Supply VS Demand⁠ ⁠ Full Guide: wtfpropertyinvesting.com/hmo⁠ ⁠ If you don\’t fancy watching the video – the winner is Warrington with 1.4 people looking for every room available meaning there\’s lower competition.⁠ ⁠ Northern cities did very well with the likes of Leeds, Sheffield, Manchester, Nottingham and Liverpool all showing strong possibilities (Beware of Article 4 though).⁠ ⁠ Southern cities, naturally have strong rents but not huge compared to the north, the gap is quite small. And London although has great rents, has low ROI & Yield due to high property prices.⁠ ⁠ Check out the video for the high-level findings of the data, let me know what you think!⁠ ⁠ 👍 Double-tap and please check out the YouTube video!⁠ ⁠ PS. I have a newsletter over on my website where I send out weekly thoughts and interesting books as well as share my own property journey as a beginner. Link in bio.⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo
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Something a little different today. SEO or otherwise known as search engine optimisation 🚀 & DOMINATING google. ⁠ ⁠ Although new to the property world, I work in a bank by day and also freelance as a graphic designer / SEO expert.⁠ ⁠ I have been doing this for about 10 years đŸ”„ ⁠I\’m already seeing some killer results from my website for big terms. Still lots of work to do though!⁠ ⁠ I knew as a part of getting started in property, I wanted to document the journey and build a solid brand to do that in the process, so I can share valuable and honest content as a way to give back to the Instagram community that taught me so much.⁠ ⁠ Separately, I also teach the skills needed to learn SEO over on skillshare.com with a video course that\’s about 1hr 50 minutes. It\’s relatively new but some good reviews coming through already. ⁠ ⁠ To give back to the more experienced developers on here – if you\’re struggling to get traffic via Google – I\’ve attached a completely FREE link to my SEO class if you click on the link in my bio you\’ll see a button to go to my skillshare.com class.⁠ ⁠ The link is a 2-week free trial on Skillshare (so just remember to cancel your skillshare membership once you\’re done), although there are tonnes of other creators on there who teach photography, project management and other stuff so might be useful for your business!⁠ ⁠ 👍 Double-tap and please check out the class for free! No strings.⁠ ⁠ PS. I have a newsletter over on my website where I send out weekly thoughts and interesting books as well as share my own property journey as a beginner. Link in bio.⁠ ⁠ #hmo⁠ #coliving⁠ #property⁠ #properties⁠ #propertybusiness⁠ #propertydevelopment⁠ #propertydeveloper⁠ #propertymanagement⁠ #ukproperty⁠ #propertyinvestment⁠ #propertyinvestor⁠ #propertyinvesting⁠ #propertypodcast⁠ #buytolet⁠ #landlord⁠ #financialfreedom⁠ #passiveincome⁠ #propertyladder ⁠ #ukpropertymarket⁠ #propertynews⁠ #propertymarket⁠ #business⁠ #entrepreneur⁠ #propertymanagement⁠ #entrepreneurship⁠ #entrepreneurlife⁠ #houseofmultipleoccupancy ⁠ #sharedhouse⁠ #spareroom⁠ #bedroominspo

Chapter 7

Where is the highest demand for HMO rooms?

There’s an extremely high demand for HMO rooms in Manchester, Bristol, Edinburgh and Birmingham but in some places, there’s too much supply for that demand.

 

This data is probably the most eye-opening. 👀

 

It takes Spareroom data and the number of rooms available.

 

Then takes the number of people đŸ™‹â€â™€ïž who have posted ads looking for rooms. 

 

And puts the two together as a metric. 🧼

 

It’s not fool-proof but is a good way to gauge đŸŽšïž the number of people looking for rooms. 

 

London is removed from this graph as it towers above every other town & city.

 

There are almost 4 people looking for every room available in London which means it’s a landlord’s market.

 

This is unsurprising, there are thousands of people (over 8000) looking for rooms.

 

They are likely are a mixture of students and young professionals hungry to progress in their career.

HMO supply and demand

Warrington and Glasgow are the only places where more people are looking than what rooms are available. 🔎

 

This means that if you have a room in these areas – expect a lot of responses to come your way from potential tenants!

 

Coventry, Hull & Reading are the most competitive ⚠ for HMO landlords where there are 2.4 rooms for every person.

 

If you flip it, it would be 0.4 people for every room.

 

You’ll really need to stand out here to get tenants attention on listings.

 

The key here is understanding how you can stand out in a VERY crowded market.

 

Is every room a magnolia box? Do they all have grey feature walls with splashes of yellow? Do something different. 

 

To make it easier to understand – I combined the two data sets together.

 

This helps understand how many people there are for every room in each city.

Here's what I found

HMO supply and demand 2020

Again – I removed London from this as it skews all the data. 

 

Warrington and Glasgow are easy to fill rooms. ✅

 

This is because there are more people looking than rooms available on the market.

 

Anything close to 1 on this graph means there’s 1 person looking for every room on the market. 

 

A lot of cities are sitting between 0.7 to 0.9 people per room. ✅

 

This means there’s more stock than people.

 

But a lot of that stock on the market is likely to be bad quality. đŸ€Ż

 

Therefore it is easy to beat a lot of the competition.

 

Don’t be that landlord who provides their tenants with awful accommodation.

 

I imagine the reason you’re here is that you’re an investor who wants to do well and provide great properties. 🏡

 

If you simply design beautiful homes for people.

 

Stand out and ensure you get proper wide-angle photography shots of your houses and rooms. 📾

 

You will stand out a mile on Spareroom. 

 

Interestingly, Hull & Birmingham are very low.

 

There’s A LOT of stock on the market, but not many people looking for those rooms.

 

This means it’s very competitive and is going to be harder.

 

It doesn’t mean it’s impossible to fill a room if you have a good product – but it won’t be as easy as other cities.  🇬🇧

 

This also may mean that rents are pushed down and that tenants have the bargaining power to ask for lower rents than what you’re advertising.

Goal Setting Guide

Free Goal Setting Guide

Are you struggling to find focus in your property business? Do you have a clear, tangible and measurable plan of action? Download this free handy goal setting guide that explores wherey you are today, your financial literal and north star lateral goals – and what you need to do to bridge that gap to meet your goals. 

Chapter 8

Where is the highest demand for HMO rooms?

If students are your focus, London is best in terms of student enrolment, outside of London, Manchester, Nottingham, Birmingham, Leeds & more are still very good.

 

The top 16 towns and cities listed below have over 25,000 students. 👹‍🎓

 

With particular high student populations in Manchester, Birmingham, Nottingham, Leeds, Sheffield and Bristol. 

 

Students are council tax-exempt which can help reduce the running costs of an HMO. đŸ’·

 

Dealing with student HMO’s also means that you have a period over the summer.

 

You can fix-up properties, repair damages and reset for another year. 🔹

 

Students afford their rent through a student loan or grant.

 

Some may have parental support. đŸ‘šâ€đŸ‘©â€đŸ‘Š

 

As student incomes are quite low they often have a guarantor which is a parent or guardian.

 

This means if they fail to pay, the guarantor will take over rental payments.

STUDENT HMO POPULATIONS

Chapter 9

In Conclusion

If you found this useful, please share with others.

 

In this brand new report we have covered:

 

➕ Average house prices in popular UK towns & cities

➕ How much rooms rent for in each city

➕ House price increases over the past 5 years

➕ Best areas for house prices VS room rental income

➕ The best & worst areas for room supply & tenant demand

➕ Where the biggest student populations are

 

Please remember that you should do your research in each area.

 

There can be both great and not so great parts to every city!

 

You could look at demographic data on the census.

 

Employability rates.

 

Is it close to a hospital or transport links?

 

Ages in areas.

 

This will help you ultimately find the best area in your chosen city.

 

Now
 the next thing is to choose an area considering the distance from where you live, how you’ll manage the property and get out there and start viewing potential properties.


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