Q4 2025 HMO Statistics

Q4 2025 HMO Statistics

Explore comprehensive UK HMO Statistics for Q4 2025, analyzing Houses in Multiple Occupation across different regions. This analysis examines property values, rental yields, and market distribution trends across a sample of 1,158 HMO properties.

£684,724
Highest Average Property Value (Greater London)
15.1%
Highest Average Yield (North East)
£55,017
Highest Average Annual Rental Income (Greater London)

UK HMO Property Values and Yields by Region

HMO Market Share Distribution

Average Yield vs Property Value

Property Count Distribution

Rental Income vs Property Value

Regional Performance Metrics

Region Properties Market Share Avg Property Value Annual Rental Income Yield

Sample Size Distribution

📊 Year-over-Year Comparison: Q4 2024 vs Q4 2025

How the UK HMO market has evolved over the past year

Total Properties Analyzed

2024 1,126
2025 1,158
+32 (+2.8%)

Highest Property Value (London)

2024 £660,227
2025 £684,724
+£24,497 (+3.7%)

Highest Yield (North East)

2024 15.4%
2025 15.1%
-0.3pp

Highest Annual Rent (Greater London)

2024 £46,041
2025 £55,017
+£8,976 (+19.5%)

Average Yield (All Regions)

2024 10.4%
2025 9.6%
-0.8pp

Average Property Value

2024 £285,279
2025 £330,362
+£45,083 (+15.8%)

Key Metrics Comparison Chart

Detailed Regional Comparison

Metric Q4 2024 Q4 2025 Change % Change
Total Properties 1,126 1,158 +32 +2.8%
Highest Property Value £660,227 £684,724 +£24,497 +3.7%
Lowest Property Value £125,400 £160,500 +£35,100 +28.0%
Average Property Value £285,279 £330,362 +£45,083 +15.8%
Highest Yield 15.4% 15.1% -0.3pp -1.9%
Average Yield 10.4% 9.6% -0.8pp -7.7%
Highest Annual Rent £46,041 £55,017 +£8,976 +19.5%
Lowest Annual Rent £13,056 £15,300 +£2,244 +17.2%
Average Annual Rent £28,248 £33,591 +£5,343 +18.9%
London Market Share 20.6% 16.5% -4.1pp -19.9%
North West Market Share 15.1% 17.9% +2.8pp +18.5%
Price-to-Rent Ratio (Avg) 10.1 years 9.8 years -0.3 years -3.0%
📈
+19%
Property Values Growth
💷
+18.9%
Rental Income Growth
📉
-0.8pp
Yield Compression
🏠
+2.8%
Market Expansion

Key Insights

HMO Market Overview

  • Analysis of HMO properties shows Greater London leads with 16.5% market share
  • HMO property values range from £160,500 to £684,724
  • Average HMO yield across regions: 9.6%
  • Total dataset: 1,158 properties across 12 UK regions

Yield Analysis

  • North East leads with 15.1% yield
  • Inverse correlation between property values and yields
  • Average yield across regions: 9.6%
  • 8 regions exceed 9.0% yield
  • London yields lowest at 8.0% due to high property values

Regional Distribution

  • North West represents 17.9% of total properties
  • West Midlands accounts for 11.2% of market
  • Northern Ireland has minimal presence (0.3%)
  • South East & London combined: 27.3% of total

Property Values

  • Greater London: £684,724 (highest)
  • South East: £484,605 (2nd highest)
  • Northern Ireland: £160,500 (lowest)
  • 4.3x value difference between highest and lowest
  • Average value across all regions: £330,362

Rental Income Patterns

  • Highest annual rent: £55,017 (Greater London)
  • Lowest annual rent: £15,300 (Northern Ireland)
  • South East annual rent: £45,450 (2nd highest)
  • Average annual rent: £33,429
  • 3.6x difference between highest and lowest rents

Market Concentration

  • Top 3 regions hold 45.6% of market
  • Bottom 3 regions only 6.7% of market
  • Clear North-South divide in property values
  • Midlands represents 17.9% combined

Sample Size Analysis

  • Total properties analyzed: 100% (1,158 properties)
  • Largest samples:
    • Greater London: 16.5% of total
    • North West: 17.9% of total
    • West Midlands: 11.2% of total

Data Quality and Distribution

  • Coverage Analysis:
    • South of England: 35.2% of total
    • North of England: 31.9% of total
    • Midlands: 17.9% of total
    • Other regions: 16.2% of total
  • Large samples (>10%): 5 regions

Regional Price-to-Rent Analysis

  • Price-to-Rent Ratios:
    • Greater London: 12.4 years (highest)
    • North East: 6.6 years (lowest)
    • Average: 9.8 years
  • Investment recovery period varies significantly by region

Regional Investment Metrics

  • Investment Efficiency:
    • Most efficient: North East (£15K per 1% yield)
    • Least efficient: London (£121K per 1% yield)
  • Capital required for £1K monthly rental varies from £56K to £186K by region

📈 YoY: Property Value Growth

  • Average property values increased by 15.8% (£285,279 → £330,362)
  • London values grew +3.7% (£660,227 → £684,724)
  • Lowest values grew +28.0% (£125,400 → £160,500)
  • Gap between highest and lowest narrowed from 5.3x to 4.3x

📉 YoY: Yield Compression

  • Average yields decreased by 0.8pp (10.4% → 9.6%)
  • North East still leads but down 0.3pp (15.4% → 15.1%)
  • Yield compression due to property values rising faster than rents
  • Regions exceeding 9.6% yield: increased from 7 to 8

💷 YoY: Rental Income Growth

  • Average annual rent up 18.9% (£28,248 → £33,591)
  • Highest rent (Greater London) +19.5% (£46,041 → £55,017)
  • Lowest rent (N. Ireland) +17.2% (£13,056 → £15,300)
  • Rent growth outpacing inflation, strong tenant demand

🏠 YoY: Market Expansion

  • Dataset grew +2.8% (1,126 → 1,158 properties)
  • North West market share increased +2.8pp (15.1% → 17.9%)
  • London market share decreased -4.1pp (20.6% → 16.5%)
  • Regional diversification trend continues

🔄 YoY: Investment Landscape Shifts

  • Price-to-rent ratio improved slightly (10.1 → 9.8 years)
  • Faster payback period as rents grew faster than property values
  • North East remains most attractive for yield-focused investors
  • London increasingly capital appreciation play vs. income

📊 YoY: Key Takeaways

  • Property values outpacing rents causing yield compression
  • Regional shift from London dominance to North West growth
  • Strong rental growth (+18.9%) supporting income investors
  • Market maturing with more balanced regional distribution
  • Investment strategy benefits from improved payback periods

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About This Research

Exclusive Insights from the UK's Largest Landlord Community - Lendlord.io

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All insights and statistics are based on analysis of 1,158 properties across the UK.

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