The average age of a first time buyer in the UK has risen to 34, six years older than the average age of a first-time buyer in 2007, which was 28. This naturally has a knock-on effect on the rental market, with 55% of people aged 25 to 34 currently in rented accommodation, up from 35% in 1998, and we can expect the pool of prospective young tenants to grow further.
HMOs and MUFBs can provide more affordable housing options for many young people who are looking to reduce rental costs and can offer tenants more certainty over outgoings, especially if bills are included in the rent. As living costs continue to rise over the remainder of 2022 and beyond, such properties are likely to grow in popularity with this age demographic.
With popularity increasing and room for growth in this sector, we expect to see more landlords considering these types of properties as a viable option when expanding their portfolio, increasing rental yields and spreading void risk. Many landlords therefore, will be seeking specialist solutions that make it easier to finance HMO and MUFB properties.
CHL Mortgages’ product range provides our intermediary partners with competitive solutions to meet increasing demand for these property types which continue to generate high yields and meet ever-shifting landlord and tenant needs. Our large and small HMO/MUFB lifetime tracker offering includes common sense criteria which caters for various property classes including; licenced, C3, C4 and Sui Generis planning use, as well as properties requiring alteration to sell as a family home.
“It is well documented that there is an increasing shortage of affordable housing. As a result, more pressure is being put on the current rental stock and landlords are investing in developing bespoke solutions to meet the demand for shared accommodation.”
Ross Turrell, Commercial Director, CHL Mortgages
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