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Houses in Multiple Occupation (HMO) Guide for UK Landlords: A Three-Part Series

A Three-Part Series HMO Guide for UK Landlords:

Are you a landlord or looking to become one? If so, you may have heard of Houses in Multiple Occupation (HMOs) and how they can be a profitable investment. In this three-part series, we’ll explore what an HMO is, the current legislation surrounding HMOs, and how they compare to traditional buy-to-let properties.

Guide spelt on individual colourful wooden blocks

Part 1: Introduction to HMOs

In the first part of this series, we’ll provide an introduction to HMOs and explain what they are and the different categories of HMOs. We’ll also discuss the current legislation surrounding HMOs in the UK, including licensing requirements and minimum room sizes.

Part 2: HMOs vs. Traditional Buy-to-Lets

In the second part of this series, we’ll compare HMOs to traditional buy-to-let properties. We’ll discuss the potential gross rental yields, effort and costs involved in setting up an HMO and the ongoing costs. Also a explanation as to the significant differences between a 4 bed HMO and a 6 bed HMO and why one is usually much more preferable than another as a landlord.

Part 3: Mortgage Lender Criteria and Legal Obligations for HMO Landlords

In the final part of this series, we’ll discuss the mortgage lender criteria for HMO properties and the legal obligations for HMO landlords. We’ll also explore the difference between an HMO and a Multi-Unit Freehold Block (MUFB) and how they differ in terms of net yield, landlord effort, and mortgages.

This three-part series is designed to provide a comprehensive guide to HMO investment in the UK for beginners.

We hope that by the end of this series, you’ll have a better understanding of what an HMO is, how it compares to traditional buy-to-let properties, and the legal obligations and requirements for HMO landlords

Your home is at risk if you fail to keep up payments on your mortgage or any other loans secured against it. Buy to Let mortgages are not usually regulated by the Financial Conduct Authority.

Compton Financial Services Ltd is an Appointed Representative of New Leaf Distribution Ltd. who are authorised and regulated by the Financial Conduct Authority. Number 460421. Head Office 165 – 167 High Street, Rayleigh, Essex SS6 7QA. Co registration Number 5520001.