HMO Investment in Bolton
Renowned as one of the friendliest places in the UK, Bolton offers significant opportunities for buy-to-let landlords. One such opportunity is the potential for investing in a HMO property.
What is a HMO property?
HMO stands for ‘House in Multiple Occupation’. A HMO property is one that is rented by a minimum of three people (all from separate households) who share financial obligations and communal facilities such as a kitchen or bathroom.
According to a 2019 briefing paper from the House of Commons Library, there were “an estimated 497,000 HMOs in England and Wales at the end of March 2018.”
Why invest in a HMO property?
There are many reasons why HMOs are a lucrative investment opportunity for landlords, such as:
· HMOs are in high demand
Many young professionals these days are attracted to HMOs when looking for a flexible and affordable property to rent that is situated right in the thick of things.
Unlike many other buy-to-let properties, HMOs are in constant demand across the UK – especially in large towns like Bolton.
· Void periods are less impactful
With multiple tenants occupying your property at any given time, the impact of one moving out is less stressful than if would be in a single occupancy property. The same applies if one tenant falls behind with their rent.
· Rental yields are higher
Owning a HMO is a great way to increase your rental yields. HMOs tend to outperform other types of buy-to-let properties and bring in more revenue.
Why buy a HMO in Bolton?
As one of the largest towns in Britain, Bolton is chock-full of desirable tenants, many of whom are young, hardworking professionals seeking convenient, affordable housing.
According to research by Savills, property prices in the North West are forecast to grow faster than anywhere else in the UK over the next 5 years. By 2022, the North West is expected to see a price increase of 18%, as opposed to an anticipated 14% for the rest of the UK.
But Bolton’s potential for property investors doesn’t end there. 2019 saw the announcement of Bolton Council’s £1bn town regeneration scheme which laid out plans for 1,800 new homes as well as for regeneration of existing infrastructure.
On October 1st 2018, changes to the HMO licencing criteria were brought in. In most cases, a HMO property will require a licence, but it’s important that you read up on HMO licencing requirements before making any final decisions about investing.
You can find out more about licencing for HMOs on Bolton Council’s website.
Read Bolton Council’s advice on HMO licences.
How Northwood can help
Here at Northwood Bolton, you can count on us to find a solution that perfectly suits your needs and lifestyle.
When it comes to the ins and outs of HMOs, we know our stuff. We can help you:
· Navigate the HMO market
· Find tenants for your property
· Manage and maintain your property
Our Fully Managed Service is a popular option for many landlords who haven’t the time to manage their property. We’ll look after all aspects of the tenancy, including advertising the property, interviewing tenants, property maintenance, rent collection and more!
If you’d like to find out more about HMO investment and the services we offer, contact us today on 01204 363626.