Landlords who own houses in multiple occupation achieved almost double the annual income of standard lets last year, new data shows.  

The average HMO landlord made £120,283 in gross rental income per property over the last 12 months, according to data provided to lender Aldermore by data group Pegasus Insight. 

This compares to gross rental income of £61,846 brought in by average non-HMO landlords over the same period. 

Aldermore director of mortgages Jon Cooper says: “While it’s common knowledge that HMO landlords tend to benefit from enhanced annual incomes and greater yields, the difference in scale here is major.” 

“The numbers here are a timely reminder of how attractive HMOs can be as an asset class for many landlords across the country.” 

The data also highlights that HMO properties play a significant part in the portfolios of landlords with the highest-earning portfolios. 

Three in 10 HMO landlords make a gross rental income between £100,000 and £199,999, compared to just one in 10 of landlords without HMOs.  

For the highest gross rental income category of £200,000-plus, 13% of HMO landlords fall into this bracket, compared with 5% landlords without HMOs. 

However, HMOs have tighter, and more costly, restrictions than single-use homes, which include more stringent planning applications and must provide councils with regular proof of features such as updated gas, electricity and fire safety. 

Research by Pegasus Insight was conducted among 794 landlords between 22 June and 7 July.