HMO LANDLORDS RECEIVE DOUBLE THE GROSS RENTAL INCOME OF NON-HMO LANDLORDS, DATA SHOWS

02 September 2025

New research commissioned by Aldermore1 shows that landlords with HMOs (houses in multiple occupation) are seeing gross annual income levels far beyond what non-HMO landlords are enjoying. The data, provided to Aldermore by Pegasus Insight, reveals that the average non-HMO landlord made £61,846 in gross rental income during the previous 12 months. This is a shade over half of what the average HMO landlord made, at £120,283.

“Whilst it’s common knowledge that HMO landlords tend to benefit from enhanced annual incomes and greater yields, the difference in scale here is major,” comments Aldermore’s director of mortgages, Jon Cooper. "The numbers here are a timely reminder of how attractive HMOs can be as an asset class for many landlords across the country.”

Perhaps unsurprisingly, the data also highlights that HMO landlords are significantly over-represented not just for average rental income, but also amongst those landlords with the highest-earning portfolios overall. Three in 10 (30%) HMO landlords fell into the gross rental income bracket between £100k and £199,999, compared to just one in 10 (10%) landlords without HMOs. For the highest gross rental income category of £200k plus, roughly one in eight (13%) HMO landlords fell into this bucket, compared to just one in twenty (5%) landlords without HMOs.

Alongside the significant financial incentives for landlords themselves, separate research also illustrates the major benefits that HMO tenants can enjoy, especially those who are university students. Polling from Opinium on behalf of Aldermore2 shows that students living in HMOs pay nearly £200 less per month than those in other private rentals (£600 vs £791). Three quarters of HMO tenants (74%) also say their living situation has benefitted them socially by helping them interact with others more regularly.

Aldermore’s Cooper continues: “While no housing option is without its trade-offs, our data suggests that HMOs are defying outdated perceptions and offering a more affordable and rewarding experience for many students and presenting a compelling financial opportunity for landlords. With the right management and attention to quality, landlords can enjoy reliable returns while offering affordable, socially enriching homes that truly make a difference to student life.”

1 Research conducted on behalf of Aldermore by Pegasus Insight between 22nd June – 7th July 2025 among 794 landlords.
2 Research conducted on behalf of Aldermore by Opinium Research between 4th – 14th July 2025 among 1,000 UK university students.