HMO landlords invest thousands despite red tape and tax
Summary
Paragon Bank reports that many HMO landlords are continuing to invest heavily in their properties despite higher costs, tax pressures and increasing regulation. The article says planned spending is focused on upgrades, compliance, fire safety and energy efficiency, with landlords taking a long-term view of the sector.
Why it matters
HMOs often require more intensive inspection and management than standard rental stock, so surveyors may see increased demand for condition assessments, compliance-related works and refurbishment advice. The emphasis on fire doors, alarms and energy-efficiency measures also points to areas where surveyors may be asked to advise on defects, standards and upgrade priorities.
Key points
- 28% of HMO landlords expect to spend over £10,000 on improvements in the next 12 months.
- Most landlords surveyed have long experience in the sector and plan to maintain or expand portfolios.
- Recent and planned works include decoration, kitchen and bathroom upgrades, compliance work and fire safety measures.
- Paragon says HMOs are producing an average yield of 8.90%, the highest property type in its data.
- Landlords are also investing in energy-efficiency improvements as standards and regulation evolve.
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