56% of landlords want to diversify into HMOs

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56% of landlords want to diversify into HMOs

Tom Belger | 07:27 Wednesday 25th April 2018 | 9

Over half of brokers (51%) have been approached by landlords looking to diversify their portfolios in the past six months, new research has shown.

A survey by OneSavings Bank has revealed that, of those brokers who had been approached by landlords about diversifying, 56% of enquiries were about diversifying into HMOs.

Some 14% of brokers said that they had been contacted by landlords who wanted to increase the number of commercial properties within their portfolio, while 9% heard from landlords that wanted to diversify into mixed-use properties.

In addition, 6% of brokers said landlords were looking to diversify into student accommodation.

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“Landlords are on the hunt for greater yields, and, in the face of regulatory and tax changes, diversifying into commercial property or more complex residential options, such as HMOs, can offer this,” said Adrian Moloney, sales director at OneSavings Bank.

“With the buy-to-let market becoming increasingly complex, there is an opportunity for informed brokers to support landlords seeking new niches.”

OneSavings Bank's research also indicated that landlords were looking at other options, such as holiday lets and serviced accommodation.

“However, these brokers must in turn be supported by specialist lenders who can offer the flexible lending needed to finance the growth of these segments of the market,” Adrian added.

56% of landlords want to diversify into HMOs

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