By Henry Bowers, Agency Surveyor, Bradley Hall
The HMO market has changed significantly over the past decade. Once viewed as a niche investment primarily associated with student accommodation, Houses in Multiple Occupation have become an increasingly important part of the UK’s private rented sector, providing flexible, affordable housing for everyone from graduates and healthcare professionals to key workers and relocating employees.
Across Yorkshire and Lancashire, that demand shows little sign of slowing. Strong local economies, growing employment hubs and comparatively affordable property prices continue to attract investors looking for assets that can deliver sustainable long-term income alongside the potential for capital growth.
Working across commercial agency in Yorkshire and Lancashire, I advise investors, landlords and developers on the acquisition and disposal of investment properties, including HMOs. Over the past few years, I’ve seen increasing interest from both experienced portfolio landlords and first-time investors, all looking to capitalise on the resilience of this sector.
Nationally, there are an estimated 497,000 HMO properties across England, while average gross yields remain around 8.4%. Northern cities continue to outperform much of the country, with average HMO yields of 9.2% in Manchester and 8.7% in Leeds, reinforcing Yorkshire and Lancashire as two of the UK’s strongest regions for HMO investment.
These figures reflect what we’re seeing on the ground. Investors continue to target locations where strong rental demand is combined with relatively affordable purchase prices, creating opportunities for sustainable long-term returns. While higher interest rates and increased regulation have undoubtedly changed the landscape, well-managed HMOs in the right locations continue to generate significant interest.
One of the key drivers behind this demand is the changing demographic of renters. HMOs are no longer solely associated with students. Increasingly, they are providing accommodation for graduates, healthcare professionals, contractors, young professionals and workers relocating for employment who value flexibility, affordability and access to major employment hubs. This shift has broadened the appeal of HMO investments and strengthened demand across a wide range of locations.
At Bradley Hall, we’re currently marketing a number of investment opportunities that demonstrate the strength and diversity of the HMO market.
One such opportunity is Park Street, Farnworth, a substantial investment property comprising multiple self-contained apartments alongside HMO accommodation. Located within easy reach of Bolton and Manchester, the property benefits from excellent transport connections, a strong local rental market and access to major employment centres. It presents an attractive opportunity for investors seeking immediate income with the potential for long-term capital growth.
We are also marketing an established HMO investment in Eccles, Greater Manchester, a location that continues to benefit from exceptional connectivity. With direct access to Manchester city centre, Salford Quays and Trafford Park via road, rail and the Metrolink network, Eccles remains one of Greater Manchester’s most accessible residential locations. That accessibility, combined with sustained tenant demand, makes it an appealing prospect for investors looking for reliable, income-producing assets.
While Manchester continues to dominate headlines, opportunities across Yorkshire are equally compelling. Leeds remains one of the UK’s fastest-growing regional cities, attracting investment across financial services, digital technology, healthcare and professional services. Elsewhere, towns throughout West Yorkshire and Lancashire continue to benefit from regeneration, infrastructure improvements and expanding employment opportunities, all of which support long-term demand for quality rental accommodation.
However, investing successfully in HMOs requires more than simply identifying attractive headline yields. Investors also need to understand licensing requirements, planning policies, local authority regulations, management obligations and tenant demand within each individual market. Every local authority takes a slightly different approach, making local knowledge an essential part of any investment strategy.
This is where professional advice can make a significant difference. At Bradley Hall, we work closely with investors throughout the acquisition and disposal process, helping clients identify opportunities that align with their investment objectives while providing practical advice based on current market conditions and local expertise.
The HMO sector has matured considerably in recent years. Today’s investors are increasingly focused on quality over quantity, seeking properties in well-connected locations that offer strong transport links, access to employment and amenities, and accommodation that meets the expectations of modern tenants. Well-presented, professionally managed HMOs continue to outperform, attracting high occupancy levels and delivering consistent income streams.
Despite ongoing economic uncertainty, the fundamentals remain encouraging. Demand for affordable, shared accommodation continues to outpace supply across many parts of the North, while Yorkshire and Lancashire remain attractive markets thanks to their comparatively affordable property values, resilient tenant demand and strong rental yields. As more people choose to rent for longer, the HMO sector is likely to remain an important part of the region’s residential investment landscape.
For investors, the key is identifying the right property in the right location and understanding the factors that will drive long-term performance. Whether it’s a purpose-built HMO, a mixed-use investment or an opportunity to reposition an existing asset, taking a strategic approach is essential to maximising returns.
Whether you’re looking to acquire your first HMO, expand an existing portfolio or dispose of an investment asset, understanding local market dynamics has never been more important. With extensive experience advising investors across Yorkshire and Lancashire, Bradley Hall is well placed to help clients identify opportunities and maximise the value of their investments.
To discuss HMO investment opportunities or any commercial investment property requirements across Yorkshire and Lancashire, contact Bradley Hall’s Commercial Agency team on 0113 223 4868 or email henry.bowers@bradleyhall.co.uk
