Lendlord has released its HMO Data Analysis Report for Q4 2025, based on a sample of 1,158 houses in multiple occupation.
The figures show the North West accounts for the largest share of HMOs at 17.9%, followed by Greater London at 16.5%. The North East recorded the highest average yield at 15.1%, slightly lower than a year earlier, but remains one of the smallest HMO markets by volume, with a 3.6% share.
Regional differences in values and returns remain wide. Average HMO property values in Greater London stood at £684,724, up £24,497 year on year, compared with £232,461 in the North East. While yields nationally have fallen below 10% on average, rental income has continued to rise, with average annual HMO rent increasing from £28,200 in Q4 2024 to £33,400 in Q4 2025.
The report also found that Greater London generated the highest annual rental income at £55,017 per property, while the average HMO yield across the UK slipped to 9.6%, down from 10.4% a year earlier.
Lendlord said the data reflects growing pressure on returns in some regions alongside rising rents, highlighting how performance continues to vary significantly across the country.
HMO Market Share Distribution:
UK HMO Property Values and Yields by Region:
Average Yield vs Property Value:
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