The North West holds the largest share of HMOs in the UK, accounting for 17.9% of stock, according to Lendlord’s Q4 2025 HMO Data Analysis Report.
The report, based on a sample of 1,158 HMO properties, shows Greater London close behind with a 16.5% share.
By contrast, the North East has one of the smallest concentrations at 3.6%, despite delivering the highest average yield at 15.1%, marginally down from 15.4% a year earlier.
Greater London leads on capital values, with average HMO property prices reaching £684,724 – up £24,497 year-on-year – compared with £232,461 in the North East. The capital also posts the highest annual rental income at £55,017.
YIELDS EDGING DOWN
Across the UK, average HMO yields have edged down to 9.6%, compared with 10.4% previously. However, average annual rents have risen sharply, climbing by more than £5,000 from £28,200 in Q4 2024 to £33,400 in Q4 2025.
Aviram Shahar (main picture, inset), Co-founder and CEO of Lendlord, says: “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.
“Our platform is designed to simplify property management and empower smarter investment choices to ensure our users can confidently navigate the complexities and ongoing challenges that they face as property investors.”
HEADLINE FIGURES
- 15.1% – highest average yield (North East)
- £684,724 – highest average property value (Greater London)
- £55,017 – highest annual rental income (Greater London)
- 9.6% – average UK HMO yield
