"HMOs are a powerful player in the UK rental landscape, generating more than £6 billion annually. But despite this, many landlords are still leaving significant value untapped"
- Vann Vogstad - COHO
New research from HMO management platform, COHO, has revealed that the House in Multiple Occupation (HMO) market across England and Wales is now worth an estimated £78bn and generates over £6.3bn in rental income annually.
Based on Office for National Statistics (ONS) data, COHO estimates 182,554 HMO properties nationwide. Of these, 74% are classified as ‘small’ HMOs—shared by three to four tenants—while 26% are considered ‘large,’ housing five or more occupants.
London dominates the HMO market
London holds the largest share of the national HMO market, accounting for 33.9% of all properties. It is followed by the South East (13.6%), South West (10.7%), North West (8.4%), and Yorkshire & Humber (7.4%).
Market value by property
The average HMO in England and Wales is valued at £293,197, giving the total market an estimated value of £78 billion. London leads with the highest average HMO value at £660,227, representing a combined market value of nearly £40.9bn. The South East follows with an average HMO price of £436,146, translating to a regional total of £10.8bn.
Other regional figures include:
South West: £7.9bn
North West: £4bn
Rental income performance
HMOs generate strong rental yields, with the average annual income per property sitting at £29,715. Across all HMOs in England and Wales, this equates to a total of more than £6.3bn in yearly rental income.
London again tops the list, with average rental income per HMO at £40,169 and a total rental income of £2.5bn. Interestingly, while London generates the most rental income overall, HMOs in the South East command the highest income per property, averaging £46,042 annually and generating over £1.1bn in total.
In the South West, the HMO market generates rental income of £747.3m, and in the North West it’s £419.2m.
Yorkshire & Humber, despite having the lowest average HMO value (£196,014) and the second-lowest average rental income (£21,208), still outpaces both Wales and the North East in total market size and income due to its relatively high number of HMOs.
Meanwhile, the East Midlands records the lowest average rental income per HMO at £20,223, but with an average property value of £236,779, its total stock value of £2.9 billion exceeds those of Yorkshire & Humber, Wales, and the North East.
A growing opportunity for landlords
COHO’s Founder and CEO, Vann Vogstad, sees strong growth potential for the sector: “HMOs are a powerful player in the UK rental landscape, generating more than £6 billion annually. But despite this, many landlords are still leaving significant value untapped.”
He added, “Our research shows tenants are willing to pay up to 10% more for an enhanced HMO living experience—particularly when they can live with compatible housemates and enjoy high standards in design, communication, and maintenance,"
"As tenant expectations continue to rise, so too will the value of the HMO market. Landlords who invest in delivering a more thoughtful, high-quality experience stand to benefit from increased rental income and long-term returns."
