Explore Fraser Bond’s expert insights into Leicester’s HMO market, with guidance on investment opportunities, compliance requirements, and strategies to maximise rental returns for landlords and property developers.
Leicester’s property market continues to grow, supported by a large student population, expanding professional workforce, and ongoing city regeneration projects. Houses in Multiple Occupation (HMOs) provide landlords with the potential for higher rental yields compared to traditional buy-to-let properties, making them an attractive investment option. Fraser Bond offers full support to HMO investors, including property acquisition advice, licensing guidance, compliance management, and tenant services.
An HMO (House in Multiple Occupation) is a property rented to three or more tenants from different households who share communal facilities such as kitchens or bathrooms. Leicester has a vibrant HMO market, particularly near universities, hospitals, and business districts.
Key HMO hotspots include:
Student Accommodation: University Road, Clarendon Park, and Stoneygate
Professional Rentals: Leicester city centre, Highcross, and Belgrave
Regeneration Areas: Waterside and New Parks developments
Compliance with Leicester City Council regulations is essential. Landlords must ensure properties meet mandatory licensing, fire and electrical safety standards, and provide sufficient communal facilities. Fraser Bond provides guidance to help landlords maintain compliance and mitigate risk.
Leicester HMOs present strong rental income potential and opportunities for capital growth. Investors should focus on:
Student Housing: Areas near the University of Leicester and De Montfort University maintain steady demand.
Young Professionals: City centre HMOs appeal to professionals working in finance, tech, and creative industries.
Urban Regeneration Zones: Developing areas like Waterside offer prospects for future capital appreciation.
Fraser Bond supports investors in identifying high-yield HMO properties, assessing rental returns, and choosing locations that combine tenant demand with regulatory ease.
Operating HMOs in Leicester requires strict adherence to regulations. Key compliance requirements include:
Mandatory HMO licensing for properties housing five or more tenants
Fire safety inspections and electrical safety checks
Gas safety certificates and Energy Performance Certificates (EPCs)
Adequate communal facilities and ongoing property maintenance
Fraser Bond assists landlords with licensing applications, inspections, and ongoing compliance, ensuring properties are legally ready for tenancy.
To optimise profitability, Leicester landlords should consider:
Professional property management for tenant acquisition, retention, and rent collection
Regular property maintenance, cleaning, and refurbishment
Strategic marketing to attract the right tenants
Efficient arrears management to protect consistent cash flow
With Fraser Bond’s local market expertise and property management solutions, landlords can maximise occupancy rates and long-term returns on their Leicester HMOs.
HMOs in Leicester offer landlords and investors a reliable opportunity for strong rental yields and consistent tenant demand. Achieving success requires detailed local market knowledge, strict compliance with licensing and safety regulations, and effective property management. Fraser Bond provides end-to-end HMO support, helping investors operate efficiently and maximise returns in Leicester’s competitive property market.
