There are plenty of reasons why there’s such a great appeal for an Edinburgh HMO property. According to the City Council’s ‘Edinburgh by Numbers’ report, over 60,000 students live in Edinburgh; almost 12% of the city’s population (513,000 in 2017). This presents a great opportunity to landlords with an Edinburgh HMO Property.
Edinburgh’s student population- here’s a breakdown of Edinburgh’s student population in terms of where they study and where they’re from;
Edinburgh University unsurprisingly tops the charts the largest number of students, many of which live around Marchmont/Newington//Old Town. Next is Napier University with campuses around Merchiston, Craiglockhart and further West. Heriot Watt brings more students to the West side of the City and Queen Margaret University has created a student demand to the East of the city around Joppa/Musselburgh and Leith.
What is an HMO property? – A House of Multiple Occupation (HMO) is a property tenanted by more than 2 unrelated people. These properties must have a license; read our Guide for landlords of Edinburgh HMO properties, containing advice on the HMO application process. The majority of HMO properties in Edinburgh are rented by students, living with friends and benefitting from reduced shared living costs.
Increased demand for larger properties – This is true for both HMO licensed and non-HMO licensed properties. Demand has grown for HMO properties from young professional tenants, commonly recent graduates who are used to sharing with friends at University and who continue to do so post-University). According to Citylets most recent market report (Q4, 2018), rents for all larger properties (both HMO and non-HMO) are increasing faster than other sizes (a 10.3% annual increase for 4 bedroom properties according the chart below). Demand is coming from students, graduates and more families living in the Private Rented Sector.
How do Edinburgh HMO properties perform? – Properties in the most popular student areas including Marchmont, Newington, The Meadows achieve rents of £600/room/month and students looking to live in The New Town will usually pay above this level. Properties in other popular areas like Dalry, Polwarth and Haymarket (often more suitable to tenants studying at Napier and Heriot Watt) rent for £450-£550 per room, per month. Here are some examples of how 4-bedroom HMO properties perform in popular Edinburgh locations;
There is a strong case for investing in Edinburgh HMO Property, with a large student tenant community and a growing demand making fantastic yields for investors. The team at Umega Lettings is experienced in sourcing, refurbishing, letting and managing Edinburgh HMO property. For more information on our HMO services contact our team by clicking here.