When it comes to moving to a new city, town or just looking for a change in housing, shared accommodation, or living in a HMO, is an excellent alternative.
Shared accommodation is where two or more unrelated people live in the same property with private access to their own bedroom and sharing facilities such as kitchens and bathrooms. There are options for groups of friends to live together or move in with people they don’t know yet, it all depends on the circumstances.
The UK has been in a housing crisis for many decades. Centre for Cities claims that today, Britain has a backlog of 4.3 million homes that are missing from the national housing market. They were never built. This has been a key factor behind the UK’s inflated property prices and soaring rental rates.
With rent increasing in the private housing market, it is usually cheaper to live in a HMO than it is to live in a flat. Tenants pay for their accommodation by the room. Prices can range from £350 - £750 depending on the size, location, aesthetics, tenancy flexibility, whether they have their own private bathroom and if bills are included.
Household energy bills increased by 54% in April 2022. Tenants in a shared house are able to divide those costs amongst themself reducing their monthly outgoings. If the same tenant was to live in a flat, all the running costs would fall on them. Since Covid the cost of living has soared across all sectors which has resulted in renters looking to tighten the belt and save every penny. More and more landlords are offering a bills included service as it removes the stress from tenants around co-ordinating bills and managing and price increases.
Oasis Living found the average price for a one bed flat is at an eye watering £850 a month (excluding London). If a tenant then had to factor in the price of utilities, water, sewerage, broadband, council tax and ground rent they could be looking at in excess of £1300.
Luckily, there have been lifestyle changes, especially amongst Gen Z and Millennials where the focus has shifted from getting married and starting a family in their early twenties to enjoying brunches and building successful careers. The under 35 age group are now more than ever choosing the HMO alternative as it fits perfectly with their lifestyle and budget plans.
Here are Parata Property we understand all of these factors along with many more demonstrate the high demand for shared accommodation and provide great investment potential. Which is why every week we search the market to bring you exclusive HMO property deals that you can add to your property portfolio.
