I found this interesting article the other day. It’s refreshing to see a positive attitude expressed on HMO lending.
Of course in reality, there are still lots of hoops to jump through, perhaps more, but the products do offer more options. Top slicing for one.
In the Reporter article they quote ‘high than average’ rental yields of 6.3% for HMOs, compared to market average 5.0%. You have to assume those are ‘net’ figures – I mean, I’m not settling for that gross!
For me though, there’s one negative criterion – maximum 8 bedrooms. I’m looking at a co-living product that should perform best with projects averaging 10 to 12 rooms. However, if I find an <8 that works, I’ll be looking seriously again at these financial options!