HMO – is now the time to invest?
It’s no secret that investing in an HMO can make a profitable return on investment, but what about post covid? Pre Covid, they were known for high rental yields, over and above standard buy-to-lets. However, is the demand the same for 2021? Here we look at both the pros and cons of investing in the current climate.
Could now be a good time to invest in an HMO?
There are significant challenges faced for the HMO market and lockdown has affected HMO landlords in many ways. Not only have landlords had household income affected, but their jobs and businesses are also left hanging in the balance. In addition to this, the HMO sector faces the non-payment of rent from tenants. Who, like themselves, have been left in a situation where they are unable to pay their rent. Then, on the flip side of this, there are houses and rooms left empty without tenants, due to heavy lockdown restrictions. Sadly, for some, the result has been unpaid mortgages and worry about how to sustain their HMO and come out the other side of covid.
Help and support
Luckily, it’s not been all doom and gloom. Where many landlords thought they could lose their investment due to missed mortgage payments, mortgage lenders stepped in to help. They offered a 3-month holiday on qualifying mortgages providing welcomed relief for both landlords and tenants. This support has helped to bolster the HMO market and give light at the end of a very long tunnel.
The future for HMOs
Now, there is more opportunity for investors to buy HMOs for lower prices as some landlords exit the market post-coronavirus. This opens an opportunity for those who have been considering this sector to take the plunge. However, if you are considering taking a leap into the HMO sector then now is the time to overdeliver and maximise on the opportunity laid out by covid.
If you would like to know more about the HMO Norwich market, please get in touch with one of our friendly team today.