Cribs Estates Ltd
Phone
WhatsApp
Back to the blogs list

HMO Property Insights 2025: Is It Still a Smart Move for UK Landlords?

Landlords
Posted in   Apr 09 , 2025

Now that we are in the middle of 2025, the housing market in the UK continues to strengthen, especially in the HMO sector. Due to economic pressure, tenants' needs are changing. With ongoing changes in government policies, landlords have every right to consider whether to invest further in HMOs. To help all the landlords, we have gathered the top HMO property trends for 2025 and HMO property market insights to help landlords make more informed decisions. 

The Rise in Demand for Affordable Shared Housing

Among the most common HMO property trends in 2025 is the increasing demand for affordable housing, especially among students and professionals with low incomes. With the rising cost of living and mortgage rates, plenty of people have already opted for shared accommodations. The demand for HMO properties in all urban areas of London is increasing continuously.  

The officials have already declared that rents have increased by 9% in the last year, which is the highest number of increase in the last decade. Due to this increase, the demand for HMOs has increased within tenants as it's the most cost-effective way for them to have a living place in urban areas. 

Regulatory Changes and Compliance in 2025

The main concern for landlords in the HMO property market is complying with regulatory requirements. The Renters (Reform) Bill, due this year-end, is expected to add more duties for landlords, including stricter and clearer guidelines about room size, energy standards, and tenant protection. 

According to the Housing Act 2004, HMOs must have a licence, but in 2025, many local councils expanded their licencing schemes. For example, the Camden Council has recently extended its policy of licencing HMOs that cover additional property types and locations, which has increased the cost of compliance for landlords. 

With policies changing rapidly and the dynamics of the HMO property market changing, landlords now want to invest in safer opportunities. Those landlords who adopt these strategies beforehand can position themselves to get occupancy filled quickly and avoid legal issues. 

Investment Returns Still Outperform Traditional Lets

Although regulations are increasing, HMO property trends in 2025 show that investors prefer HMOs to build their long-term yields instead of opting for single-let properties. Recent data from Paragon Bank shows that rental income from HMOs is around 9% in the UK, which is higher than other forms of let properties, totalling up to 6%. 

One reason for the high returns is the multiple rent streams from tenants, which help landlords stay ahead of rising costs whilst bearing the costs of energy, taxes, and mortgage payments. Some tech-savvy landlords prefer to modify their properties to attract new tenants with high specifications and flexible contracts. 

HMO Property Market Insights About Technology 

One of the most prominent themes in the property market this year is how technology has changed the world. In 2025, landlords shifted their focus to digital tools for managing communication with tenants and collecting rent. 

Landlordsnow consider smart meters, security systems, and energy-efficient products for the rooms in HMOs. These upgrades appeal to tenants and help landlords comply with the new energy standards, which require an EPC rating of C or above. This way, the landlords reduce their problems related to operations and maintenance whilst improving the satisfaction level they can ensure for tenants. 

Regional Growth and Emerging HMO Property Trends in 2025

London is still among the major cities where HMO investment produces high returns for investors, indicating that other regional cities are also in line to receive high demand. Major cities like Liverpool experience strong rent demand, whilst property prices are low, and the student population is rising, making HMO properties ideal. 

The projects that are backed up by the government, such as better transportation, are also attracting new tenants. Due to these actions, the recent HMO property market insights encourage landlords to enter new opportunities other than the capital market and get better long-term value.

How Cribs Estates Can Help Landlords in the HMO Market

Cribs Estates is a well-reputed property management agency in London that has assisted landlords in maximising their income from HMO properties. Our team of experts helps you secure licences whilst ensuring the property complies with regulations. We have a system tailored specifically for your property, from collecting rent to managing tenants. 

We believe in empowering landlords to stay informed about the latest HMO property trends in 2025 and move towards updated property management methods. Cribs Estates ensures that properties remain profitable and appealing to tenants. Whether you are a first-time buyer or looking to grow your portfolio further, we have the expertise in the local market to give you the right push to succeed in 2025.

Contact our experts today if you're ready to take the stress out of HMO management whilst achieving consistent returns.

Shared on social media

Comments


Latest Blogs

How Much do Letting Agents Charge Landlords

Landlords considering letting a property in the UK know that the process can be rewarding but demanding. The most common way landlords handle multiple properties outside their living areas is by hiring reliable and cost-effective letting agents. If you’re thinking about managing your properties but don’t know how much letting agents charge landlords, and what you're paying them for, here’s a brief breakdown of how the fees are calculated and whether it’s worth the investment. The Standard Fee Structure: What to ExpectThe fee structure in the UK depends on the list of services provided, which is why most companies offer 3-tier services: finding tenants, collecting rent, and managing the entire property. Each service has a different price structure and responsibilities. If we talk about finding tenants only service, companies charge around 75% to complete 100% of one month's rent, along with added VAT. The services included in this tier include marketing the property, handling viewings, background checks of the tenants, and drafting tenancy agreements. Next comes the rent collection service, where the estate agents collect the rent on your behalf and even chase the arrears if needed. This service will cost landlords around 5%-10% of monthly rent, with additions that include tenant finding fees. For landlords who opt for complete managed services, the most viable option is an estate agent who charges between 10% and 15% of their monthly rent. The services include every aspect, ranging from property maintenance and inspection to handling the queries of tenants, checking local council compliance, and any emergencies.Location MattersLike the property prices, the fees of letting agents can also vary as per the location. For example, in London and other areas with high demand, agents charge higher to manage a full service and push to go ahead 15%, depending on how premium the the property is and what management is required there.Whereas, the landlords living in the small areas will the rates of agents to be more cost-effective. But, you need to remember that cheap rate does not mean a better service so it’s important to do the homework about your expectations before thinking about the cost and going for a cheap option. Are the Fees Regulated?As per the official Tenant Fees Act 2019, the letting agents were banned to take fees from tenants, however, they are allowed to charge landlords. Agents can set their own pricing as per tier-services provided so it becomes necessary to comapre the services with other agencies before hiring and signing the agreement. It is required for letting agents to be a part of a redress scheme like Property Ombudsman or the Property Redress Scheme. Majority of the estate agents are already a part of bodies like ARLA Propertymark that has a list of code to conducts to follow and encourage to have transparency.  Can You Negotiate?Yes, letting agent fees are not set in stone. Especially in areas with plenty of competition, many agents are open to negotiation. If you have multiple properties or intend to be a long-term client, you may be able to secure a reduced rate.It’s always worth asking for a discount or requesting that certain extras be included in the base fee. But do so carefully, choosing an agent solely because they’re the cheapest may backfire if the service turns out to be poor.Is It Worth Paying for a Letting Agent?This ultimately comes down to your experience, availability, and how hands-on you want to be. If you’re a new landlord or live far from your rental property, a letting agent can provide peace of mind and ensure you remain compliant with ever-changing regulations.Full management may seem costly, but for landlords who value time and stress-free income, it can be well worth the expense. On the other hand, if you’re confident in handling tenant queries, legal paperwork, and maintenance issues yourself, a tenant-find only service might suffice.How Cribs Estates Can HelpAt Cribs Estates, we understand that every landlord has different needs. Whether you own one property or a growing portfolio, our letting services are designed to make the process smooth, compliant, and profitable. We offer transparent pricing with no hidden fees, and our experienced team handles everything from finding the right tenant to managing day-to-day maintenance and ensuring legal compliance.Located in the heart of London, we know the local rental market inside out. Our dedicated lettings experts provide personalised advice, regular updates, and access to trusted contractors, so you can rest easy knowing your property is in safe hands.

Read more

Who Pays Service Charge: Landlord or Tenant?

Whenever you need to rent a property in the UK as a tenant or a landlord, there is always a common question that circles in your head: who pays service charge landlord or tenant? There is an increase in the number of flats and properties on lease within the country, especially in major cities like London, so it is important to know the exact service charges that both parties will bear. Such charges keep changing, creating confusion in minds, so the best way is to define every term in the tenancy or the lease agreement. Here’s a brief about what exactly this is about:What Is a Service Charge?As the name suggests, landlords collect a fee to cover all the costs of maintaining the services of the property or the building. It includes all cleaning of staircases, and the maintenance of lifts, security, gardening, and other basic services, such as heating and lighting. For the flats, the service charges may also mean the insurance of building and management fees or other repair funds. However, it may need to be figured out by both parties as to who will be responsible for the charge: the landlord or the tenant? Does the Landlord or Tenant Pay?It all comes down to the type of tenancy agreement you have. When discussing leasehold property, the agents charge the landlords or leaseholders for the services. In many cases, the landlords pass these service costs to the tenants. As per the Assured Shorthold Tenancy (AST), if the agreement already specifies that tenants are responsible for charges, they are legally bound to do so; however, if it’s not specified, landlords will have to cover all the service charges themselves. Is the Service Charge Included in the Rent?Oftentimes, we have seen the landlords add these service charges within the monthly rent so that tenants don’t feel they are giving anything extra other than rent. This approach is very common in single-let family properties, but landlords take service charges separately in larger living places like blocks or flats. Due to the nature of work in the building, the tenants get a breakdown of the invoices that reveals the charges. If you are a tenant, you should ask upfront whether the service charges are included in the rent. If they are not, you should get a clear idea of the expected cost and what it will cover. Understanding the Tenant's RightsUnder the Landlord and Tenant Act 1985, tenants can request a written account summary and even inspect the documents to determine whether the charges are accurate. For example, if a tenant pays £ 130 in monthly charges, they are entitled to know where every penny is spent, whether on cleaning, gardening, maintenance, or lift repair. Disputes or trust issues can be avoided if landlords are transparent about these charges. What About Variable Service Charges?Variable service charges are another essential aspect, as they change yearly depending on costs. Tenants will pay higher charges with each passing year unless a fixed rate is decided at the start of the agreement. Landlords must highlight this aspect in the agreement to avoid misunderstandings, as not explaining it could raise questions in the tenant's mind. Disputes and MisunderstandingsWhen the tenants feel like they are not getting the quality of services against the monthly charges they pay, for example, if the lift of the building is frequently out of service or the cleaning is not regularly done, the tenants start to question the service charges and the work done against them. When such cases happen, the landlords or the estate agents working on their behalf act quickly to resolve the communication gap and any problems to avoid legal complaints or court proceedings. Who Pays Service Charge Landlord or Tenant? The Clear Answer!Coming back to our actual question, the answer is always the tenancy agreement. If the agreement states that it will be the tenants' responsibility, they must pay. If it’s the other way around, landlords must cover the expenses. It also highlights how important a well-written agreement is and how the expectations should be decided for both parties. Still, some landlords add service charges to the rent to simplify matters and keep the property appealing to new tenants. Others, with more detailed amenities, take a separate approach to service charges. How Cribs Estates Can Help?Cribs Estate specialises in understanding and acceptably managing the service charges to tenants and landlords. We offer a complete property management service that handles all the aspects for you, including tenant questions, communication, and handling the management work that needs to be done in the building, whilst informing both parties about tasks completed.The professional support we offer landlords will help them avoid mistakes whilst allowing them to focus on growing their portfolios. Whether new to the property rental market or already invested in properties, Cribs Estates is always ready to make their processes simple and stress-free whilst giving them peace of mind.

Read more

HMO Property Insights 2025: Is It Still a Smart Move for UK Landlords?

Now that we are in the middle of 2025, the housing market in the UK continues to strengthen, especially in the HMO sector. Due to economic pressure, tenants' needs are changing. With ongoing changes in government policies, landlords have every right to consider whether to invest further in HMOs. To help all the landlords, we have gathered the top HMO property trends for 2025 and HMO property market insights to help landlords make more informed decisions. The Rise in Demand for Affordable Shared HousingAmong the most common HMO property trends in 2025 is the increasing demand for affordable housing, especially among students and professionals with low incomes. With the rising cost of living and mortgage rates, plenty of people have already opted for shared accommodations. The demand for HMO properties in all urban areas of London is increasing continuously.  The officials have already declared that rents have increased by 9% in the last year, which is the highest number of increase in the last decade. Due to this increase, the demand for HMOs has increased within tenants as it's the most cost-effective way for them to have a living place in urban areas. Regulatory Changes and Compliance in 2025The main concern for landlords in the HMO property market is complying with regulatory requirements. The Renters (Reform) Bill, due this year-end, is expected to add more duties for landlords, including stricter and clearer guidelines about room size, energy standards, and tenant protection. According to the Housing Act 2004, HMOs must have a licence, but in 2025, many local councils expanded their licencing schemes. For example, the Camden Council has recently extended its policy of licencing HMOs that cover additional property types and locations, which has increased the cost of compliance for landlords. With policies changing rapidly and the dynamics of the HMO property market changing, landlords now want to invest in safer opportunities. Those landlords who adopt these strategies beforehand can position themselves to get occupancy filled quickly and avoid legal issues. Investment Returns Still Outperform Traditional LetsAlthough regulations are increasing, HMO property trends in 2025 show that investors prefer HMOs to build their long-term yields instead of opting for single-let properties. Recent data from Paragon Bank shows that rental income from HMOs is around 9% in the UK, which is higher than other forms of let properties, totalling up to 6%. One reason for the high returns is the multiple rent streams from tenants, which help landlords stay ahead of rising costs whilst bearing the costs of energy, taxes, and mortgage payments. Some tech-savvy landlords prefer to modify their properties to attract new tenants with high specifications and flexible contracts. HMO Property Market Insights About Technology One of the most prominent themes in the property market this year is how technology has changed the world. In 2025, landlords shifted their focus to digital tools for managing communication with tenants and collecting rent. Landlordsnow consider smart meters, security systems, and energy-efficient products for the rooms in HMOs. These upgrades appeal to tenants and help landlords comply with the new energy standards, which require an EPC rating of C or above. This way, the landlords reduce their problems related to operations and maintenance whilst improving the satisfaction level they can ensure for tenants. Regional Growth and Emerging HMO Property Trends in 2025London is still among the major cities where HMO investment produces high returns for investors, indicating that other regional cities are also in line to receive high demand. Major cities like Liverpool experience strong rent demand, whilst property prices are low, and the student population is rising, making HMO properties ideal. The projects that are backed up by the government, such as better transportation, are also attracting new tenants. Due to these actions, the recent HMO property market insights encourage landlords to enter new opportunities other than the capital market and get better long-term value.How Cribs Estates Can Help Landlords in the HMO MarketCribs Estates is a well-reputed property management agency in London that has assisted landlords in maximising their income from HMO properties. Our team of experts helps you secure licences whilst ensuring the property complies with regulations. We have a system tailored specifically for your property, from collecting rent to managing tenants. We believe in empowering landlords to stay informed about the latest HMO property trends in 2025 and move towards updated property management methods. Cribs Estates ensures that properties remain profitable and appealing to tenants. Whether you are a first-time buyer or looking to grow your portfolio further, we have the expertise in the local market to give you the right push to succeed in 2025.Contact our experts today if you're ready to take the stress out of HMO management whilst achieving consistent returns.

Read more

Do You Need Planning Permission For HMO

The demand for shared accommodation has increased recently, and landlords have now considered converting their properties into houses in multiple occupations (HMO). But before you take the next step, there is one important question you need to answer: Do you need planning permission for HMOs in 2025? The answer to this depends on many factors, including the regulation of the council, tenant numbers, and the conversion type. Landlords must understand UK laws regarding planning permission for their properties to avoid costly fines or legal action. How is HMO defined?  In the UK, an HMO is a property rented to three or more tenants from different households who share basic facilities like a kitchen, bathroom, and living space. Whilst small HMOs can be established through some given development rights, large HMOs require complete planning and clear intention. Planning permission for HMOs depends primarily on whether the property falls in Use Class C3 (single dwelling) or needs to be reclassified in Use Class C4 (small HMO) or the Sui Generis (large HMO). Small HMOs, comprising three or up to six occupants, benefit from given development rights, and no formal application is required unless the Article 4 directions are applied. How Does Article 4 Affect Planning Permission for HMO? Many local councils in the UK have introduced Article 4 Directions, which remove automatically permitted development rights. If an Article 4 Direction is in place, even small HMOs (three to six occupants) require planning permission before conversion. This regulation is often implemented in areas with a high concentration of shared housing to manage the impact on local communities. Before converting a property into an HMO, landlords should check with their local authority to determine whether Article 4 applies. Councils such as Manchester, Birmingham, and many London boroughs have strict Article 4 controls, which require planning permission for HMOs. When is Planning Permission Required for an HMO? Small HMOs (under six occupants) generally do not require planning permission unless Article 4 is in place, but larger HMOs must obtain formal approval. Here are situations where planning permission for HMO is mandatory: 1. Any property housing seven or more unrelated tenants is classified as Sui Generis and requires a planning application. 2. Planning permission is required if a commercial property (such as an office or retail space) is being converted into an HMO. 3. Planning approval is necessary if the conversion involves major modifications, such as adding extensions, increasing the number of rooms, or altering external appearances. 4. If the property is located in an Article 4 Direction zone, even a small HMO conversion requires permission. How to Apply for Planning Permission for HMO in 2025 Applying for planning permission for HMOs requires landlords to submit a formal application to the local for planning permission for HMOs council. This process includes providing detailed property plans, outlining intended modifications, and demonstrating compliance with HMO licensing, safety standards, and local housing policies. 1. Speak with the local planning authority to understand specific requirements and assess the likelihood of approval. 2. Prepare documents, including property plans, proposed usage details, and supporting statements addressing community impact. 3. The application is reviewed, and local residents may be invited to comment. 4. The council either grants or refuses permission, usually within 8-12 weeks. 5. Landlords can appeal to the Planning Inspectorate if planning permission is denied. What Happens if You Convert Without Planning Permission? Failure to obtain planning permission for an HMO when required can lead to serious legal consequences. Local authorities can issue enforcement notices, requiring landlords to restore the property to its original use. Non-compliance can result in hefty fines and potential legal action. Additionally, landlords who rent out an unapproved HMO may struggle to secure financing, as mortgage lenders often require compliance with planning regulations before approving loans for HMO properties. How Cribs Estates help with Planning Permission for HMO Cribs Estates specialises in converting properties into HMOs whilst ensuring full legal compliance. We help: 1. Determine whether planning permission is necessary based on location and property type. 2. Our team manages the entire application process, ensuring accurate documentation and smooth submission. 3. If your property is in an Article 4 Direction area, we assist in building a strong case for approval. 4. Beyond planning permission, we ensure your property meets all licensing and safety requirements. 5.  We provide strategic advice on optimising rental yields whilst complying with planning laws. Converting a property into an HMO can be highly profitable, but only when done correctly. With Cribs Estates by your side, you can confidently expand your rental portfolio whilst we handle the planning permission for HMO.

Read more

Property search

Residential Lettings
Price
Min price
Max price
Number of Bedrooms
Min bedrooms
Max bedrooms
Find properties
x