HMO’s in Smaller Towns

Historically HMO’s or Houses in Multiple Occupation were popular in larger towns and cities because they provided three or more people an affordable place to live, but recently we were asked the question about how popular HMO’s were in smaller towns and this started us thinking, could HMO’s provide affordable accommodation in the smaller towns?

Housing stock is very low within Wales and we are struggling for the supply of housing stock to keep up with demand. Rental stock is depleting, tenants that would have moved every 6 months to a year are staying for longer and houses are simply not available like they used to be. This does not look like it is going to change any time soon because the Government is so much more tougher on Landlords than they have ever been before and Landlords are reluctant to add to their portfolios and some are even selling up to get away from the added stresses placed on them from above.

Whether you like the idea of Private Landlords or not, the fact is that they help to provide housing for tenants when the social landlords struggle to keep up. In the past social landlords would house social tenants who would be on benefits, but nowadays Private Landlords plug the gap and provide a service to help ease the burden for the social landlords.

But we have been thinking about HMO’s and how they might provide accommodation in smaller towns. Landlords could take an existing property with good transport links, and create accommodation for three of people individuals. Imagine the return on investment if you take a four bedroom house that currently rents to a family for £700 per calendar month and split it into accommodation for four individuals each paying £300 per calendar month including bills. You do the maths!

Granted the rules are stricter with regard to running an HMO and the fines for not getting it right can be through the roof, but don’t let that put you off because providing that your follow the rules and do things by the book, the financial  rewards can be great compared to the standard buy-to-let.

As the population of Wales increases, we are going to find it very difficult to keep up with the demand for housing, so maybe HMO’s could provide the solution with regard to affordable accommodation in smaller towns as well as in larger cities. What are your thoughts?

For more information on creating an HMO please check out the guidelines here –

One thought on “HMO’s in Smaller Towns

  1. HMOs maybe needed across Wales, but the Welsh Government doesn’t want them! This is because planning permission is now required for any property in Wales that has 3 or more unrelated people sharing.

    This change to planning for HMOs in Wales was introduced in February 2016. Councils such as Cardiff Council have taken it a step further with their SPG, making it harder to create news HMOs in the city.

    You can find out more about the HMO planning requirements in Wales and Cardiff Council restrictions on HMOs in this article

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