92% of landlords tailor HMOs to target specific tenant groups, Paragon Bank finds
Students were the most targeted group at 36%, followed by white collar or professional workers at 25% and young single tenants at 19%.
Landlords are focusing houses in multiple occupation (HMOs) on specific tenant groups and taking a more targeted approach to buying and managing properties, research from Paragon Bank found.
The research showed 92% of landlords prepare or present their HMOs to attract a certain type of tenant.
Students were the most targeted group at 36%, followed by white collar or professional workers at 25% and young single tenants at 19%.
A quarter now look for ensuite bedrooms when buying, while 19% focus on locations near work hubs or transport links.
Larger bedroom sizes and better energy efficiency were both priorities for 19% and 23% of landlords.
In the past six months, 62% of landlords said they had improved an HMO, with another 24% having done so in the past year.
Demand from tenants has increased for faster broadband, ensuite facilities and inclusive bills.
Louisa Sedgwick (pictured), managing director of mortgages at Paragon Bank, said: “These findings show how the HMO market is continuing to evolve, with landlords taking a more targeted and strategic approach to their investments.
“Many are now clearly identifying the tenant groups they want to attract and shaping their properties accordingly, which is influencing decisions around layout, location and the amenities being offered.
“For brokers, this highlights how varied HMO propositions can be, with borrowing requirements increasingly shaped by property specification, refurbishment plans and the rental positioning landlords are aiming to achieve.”
Sedgwick added: “This creates opportunities to engage with clients at both the acquisition and refinancing stages, particularly where landlords are repositioning properties or building portfolios focused on defined tenant segments.
“Lenders with experience in more complex propositions, including HMOs, are well placed to support these requirements.”
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