Member Article

PWR Lettings Issue Landlord Warning Amidst New HMO Report

Following recent reports that HMO investments are out-performing general buy-to-let properties when it comes to gross yields, a Nottinghamshire based property consultancy is advising landlords to invest responsibly.

PWR Lettings, with offices in Nottingham and Mansfield, has seen a large yield increase in large multi unit blocks, including properties with multiple tenancy agreements and student houses.

The report from the Buy-To-Let Index by Mortgages for Business, stated that whilst gross yields on single tenancy agreement properties fell slightly in the third quarter at 5.9 per cent in comparison the previous quarter’s 6.3 per cent, multiple tenancy agreements are generating yields of up to 8.3 per cent which is an increase of 1.3 per cent from the first quarter.

Simon Perkins, a partner at PWR, said: “PWR has seen similar trends in Nottinghamshire. If a landlord decides invest in a HMO, they must make sure it is done responsibly. Often requiring a license from their local authority, HMO’s can be a great investment if handled correctly. Landlords will also need a specialist mortgage product for more complex types of property.”

Simon added: “As long as landlords go through the stages responsibly and properly by using a professional agent, they can earn greater yields.”

This was posted in Bdaily's Members' News section by Poppy-PR .