North West has biggest HMO share in UK: Lendlord Mortgage Finance Gazette

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The North West of England has greatest HMO share in UK, according to Lendlord Q4 2025 HMO report

Drawing on sample data of 1,158 HMO properties, the report reveals regional trends in property values, rental yields, and market distribution.

The North West has the highest share of HMOs in the UK at 17.9% with Greater London just behind at 16.5%. Despite the North East showing the highest average yield (15.1%, slightly down from 15.4% in Q4 2024), the region has one of the lowest shares of HMOs at 3.6%.

The data highlights significant disparities in regional performance, with Greater London leading in average property value £684,724 (an increase of £24,497 from Q4 2024) compared to £232,461 in the North East.

Key trends show average yields across the UK reducing to less than 10%, although the average annual rent in the UK has increased by over £5,000 (£28,200 in Q4 2024 compared to £33,400 in Q4 2025).

The report reveals that the Highest annual rental income  is £55,017(Greater London)’ and average HMO yield across the UK are now 9.6% (down from 10.4% from Q4 2025).

Commenting on the data Lendlord chief executive Aviram Shahar said: “The importance of HMOs to property investors has never been clearer and our Q4 2025 figures highlight that yields have remained fairly constant year on year with the average annual rent increasing by an impressive £5,000 in just one year.”