Half of HMO landlords have said they use their property or portfolio as their sole source of income, a study by Landbay has revealed.

Just under 30% of landlords who took part in the survey by the buy-to-let (BTL) lender Landbay owned a house in multiple occupation (HMO) property or portfolio, while seven in 10 (72%) of these landlords owned HMO properties through a limited company.

Half of respondents said they did not have another job and used their property or portfolio as their sole source of income.

The survey found that the highest proportion of HMOs were in London and the South East (47%), followed by the East Midlands.

Sales and distribution director at Landbay, Rob Stanton, said that survey results show “continuing confidence” in HMOs.

“Despite proposed rental reforms and local authority licensing schemes, the market remains resilient,” Stanton said. “With an ongoing housing shortage, demand is stronger than ever for decent and fairly managed house shares.

“HMO landlords have received a boost from falling utility bills. This means higher net rental which can make it easier to borrow a greater amount against the property’s value. In addition, council tax banding for individual rooms in shared houses has been reversed so HMOs are classed as a single dwelling as before.

“As long as investors do their research thoroughly before making the leap, HMOs can give great returns.”

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