New research by Excellent Capital shows that HMO sells for 50% above the average house price and rents for as high as 12.5%.
Excellent analysis of HMO sales price data shows that the average HMO licensed property in England sells for £334,260, 13.1% higher than the national average house price (£295,654).
However, in some major cities in England, this HMO premium is getting bigger and bigger.
In Newcastle, the current average house price is £211,160 and the average price of HMO is £315,890. This means the HMO price premium is 49.6%.
In Nottingham, the premium is almost as strong, where the average HMO selling price is £282,942, which is 45.5% higher than the average house price.
Next comes Liverpool (39.9%), Birmingham (36.4%), Bristol (30%), Bradford (29.6%), Sheffield (28.1%), London (26.4%), Leicester (23.1%), Manchester (Manchester (22.7%) (22.7%), leds (16.9%) (8%) (8%), and the like are large premiums.
Commenting on Robert Sadler, Vice President of Capital Excellence at Data, said: “We have previously talked about the earnings opportunities offered by snapping up relatively cheap homes and converting them into HMOs, especially in regional cities in the England region, and now this other study shows that investors who want to buy a property can buy the necessary conversion work and then sell it in the department, or sell it as a member.
