Updated October 2026 · Fraser Bond
Investment · HMOs
Making money from HMOs
Per-roomrents
Licensingmandatory
Article 4planning
Yieldcalculator
In short: HMOs (houses in multiple occupation) let rooms to unrelated sharers, so total rent is usually higher than for a single let, giving stronger yields. The trade-offs are licensing (mandatory for five or more people, and often additional licensing for smaller HMOs), planning restrictions where Article 4 directions remove permitted development rights, minimum room sizes, fire safety, bills and more management. Under the 2026 rules, each tenant has a periodic tenancy and can leave with two months' notice. Fraser Bond manages HMOs and can test the numbers.
HMO yield
Gross rent per year–
Net income per year–
Net yield–
Before mortgage costs and tax.
Frequently asked questions
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Do I need planning permission for an HMO?
Often in Article 4 areas, and always for large HMOs (7+).
Can Fraser Bond manage an HMO?
Yes.
