Cribs Estates Ltd
Phone
WhatsApp
Back to the blogs list

HMO Property Insights 2025: Is It Still a Smart Move for UK Landlords?

Landlords
Posted in   Apr 09 , 2025

Now that we are in the middle of 2025, the housing market in the UK continues to strengthen, especially in the HMO sector. Due to economic pressure, tenants' needs are changing. With ongoing changes in government policies, landlords have every right to consider whether to invest further in HMOs. To help all the landlords, we have gathered the top HMO property trends for 2025 and HMO property market insights to help landlords make more informed decisions. 

The Rise in Demand for Affordable Shared Housing

Among the most common HMO property trends in 2025 is the increasing demand for affordable housing, especially among students and professionals with low incomes. With the rising cost of living and mortgage rates, plenty of people have already opted for shared accommodations. The demand for HMO properties in all urban areas of London is increasing continuously.  

The officials have already declared that rents have increased by 9% in the last year, which is the highest number of increase in the last decade. Due to this increase, the demand for HMOs has increased within tenants as it's the most cost-effective way for them to have a living place in urban areas. 

Regulatory Changes and Compliance in 2025

The main concern for landlords in the HMO property market is complying with regulatory requirements. The Renters (Reform) Bill, due this year-end, is expected to add more duties for landlords, including stricter and clearer guidelines about room size, energy standards, and tenant protection. 

According to the Housing Act 2004, HMOs must have a licence, but in 2025, many local councils expanded their licencing schemes. For example, the Camden Council has recently extended its policy of licencing HMOs that cover additional property types and locations, which has increased the cost of compliance for landlords. 

With policies changing rapidly and the dynamics of the HMO property market changing, landlords now want to invest in safer opportunities. Those landlords who adopt these strategies beforehand can position themselves to get occupancy filled quickly and avoid legal issues. 

Investment Returns Still Outperform Traditional Lets

Although regulations are increasing, HMO property trends in 2025 show that investors prefer HMOs to build their long-term yields instead of opting for single-let properties. Recent data from Paragon Bank shows that rental income from HMOs is around 9% in the UK, which is higher than other forms of let properties, totalling up to 6%. 

One reason for the high returns is the multiple rent streams from tenants, which help landlords stay ahead of rising costs whilst bearing the costs of energy, taxes, and mortgage payments. Some tech-savvy landlords prefer to modify their properties to attract new tenants with high specifications and flexible contracts. 

HMO Property Market Insights About Technology 

One of the most prominent themes in the property market this year is how technology has changed the world. In 2025, landlords shifted their focus to digital tools for managing communication with tenants and collecting rent. 

Landlordsnow consider smart meters, security systems, and energy-efficient products for the rooms in HMOs. These upgrades appeal to tenants and help landlords comply with the new energy standards, which require an EPC rating of C or above. This way, the landlords reduce their problems related to operations and maintenance whilst improving the satisfaction level they can ensure for tenants. 

Regional Growth and Emerging HMO Property Trends in 2025

London is still among the major cities where HMO investment produces high returns for investors, indicating that other regional cities are also in line to receive high demand. Major cities like Liverpool experience strong rent demand, whilst property prices are low, and the student population is rising, making HMO properties ideal. 

The projects that are backed up by the government, such as better transportation, are also attracting new tenants. Due to these actions, the recent HMO property market insights encourage landlords to enter new opportunities other than the capital market and get better long-term value.

How Cribs Estates Can Help Landlords in the HMO Market

Cribs Estates is a well-reputed property management agency in London that has assisted landlords in maximising their income from HMO properties. Our team of experts helps you secure licences whilst ensuring the property complies with regulations. We have a system tailored specifically for your property, from collecting rent to managing tenants. 

We believe in empowering landlords to stay informed about the latest HMO property trends in 2025 and move towards updated property management methods. Cribs Estates ensures that properties remain profitable and appealing to tenants. Whether you are a first-time buyer or looking to grow your portfolio further, we have the expertise in the local market to give you the right push to succeed in 2025.

Contact our experts today if you're ready to take the stress out of HMO management whilst achieving consistent returns.

Shared on social media

Comments


Latest Blogs

Property Management Firm Near You That you Can Trust

When someone types “property management firms near me” into a search engine, it usually means they’re looking for trustworthy support, whether they’re a landlord who wants peace of mind or a tenant who wants a well-managed home. The choices can be overwhelming in a city as busy and diverse as London. That’s why Cribs Estates is proud to be the go-to local property management firm for landlords and tenants in South West London. With a personalised approach, deep local knowledge, and reliable services, Cribs Estates continues to earn the trust of property owners and renters alike. A Local Property Management Firm with Deep London Roots Unlike national companies that treat property as just another business transaction, Cribs Estates is rooted in South West London. We understand the area, the people, and the properties. Our team knows which streets are most in demand, what type of tenants are looking in each location, and how to attract the right renters quickly. This local expertise allows us to set competitive rental prices, offer accurate advice, and provide a truly hands-on service for all our clients. Tailored Property Management That Fits Your Needs Cribs Estates offers a fully managed service covering every rental journey step. We begin by marketing your property across leading platforms, helping you find reliable tenants quickly. Once tenants are found, we conduct all necessary checks, such as Right to Rent and full referencing, to ensure compliance and suitability. We also prepare legally binding tenancy agreements, protect deposits through government-approved schemes, and handle all check-ins and inspections. Throughout the tenancy, we manage rent collection, deal with any arrears, arrange repairs using trusted local contractors, and conduct regular inspections. When the tenancy ends, we handle notices, renewals, or re-lettings to ensure minimal void periods. Trusted by Landlords, Valued by Tenants Landlords choose Cribs Estates because they trust our honest advice, prompt communication, and commitment to protecting their investments. Tenants appreciate how approachable and responsive we are. We treat tenants fairly, resolve issues quickly, and ensure their homes are well-maintained. This balanced approach leads to long-lasting tenancies, fewer complaints, and better relationships. At Cribs Estates, a happy tenant is likelier to stay longer and treat the property carefully, benefiting both sides. Keeping You Compliant and Up to Date The legal requirements for landlords in the UK are constantly evolving, and staying on top of them can be difficult. There's much to manage, from gas safety certificates and EPC ratings to fire safety laws and deposit protection rules. Cribs Estates ensures that your property is always legally compliant. We keep track of changing regulations and handle all paperwork, inspections, and deadlines on your behalf. Whether meetingnew EPC regulations or complying with the Renters’ Reform Bill, we ensure everything is done right and on time. Regular Communication and Real-Time Support Cribs Estates is known for our transparent and timely communication. We believe landlords should never be left wondering what’s happening with their property. That’s why we update you regularly with property reports, rental updates, and prompt alerts if any issues arise. If a repair is needed, we act quickly and keep you informed every step of the way. If a tenant decides to move out, we immediately remarket your property to reduce downtime. We aim to provide peace of mind and maximum efficiency for every client. Digital Tools with a Personal Touch We use the latest property management tools to offer convenience and transparency to landlords and tenants. From digital tenancy agreements and online rent collection to real-time maintenance tracking, our systems make everything simple. But we never let technology replace the human connection. Our friendly, experienced team is always available to speak with you directly, whether in person, over the phone, or by email. We combine smart tools with a personal approach to make property management easier and more reliable than ever. Why Choose Cribs Estates Cribs Estates continues to be one of the most trusted property management firms in South West London. We care deeply about the properties we manage, the landlords who rely on us, and the tenants who call these properties home. Our service is fast, fair, and thoroughly tailored to your needs. With our combination of local expertise, legal knowledge, proactive communication, and friendly service, we offer more than just management, real support, and long-term success. Ready to Work with a Property Management Firm You Can Trust? If you are a landlord seeking dependable management for your London property or a tenant looking for a well-managed home, Cribs Estates is here to help. Our personalised service, in-depth market knowledge, and hands-on care make us one of the best choices for property management in the area. Next time you search “property management firms near me,” remember that Cribs Estates offers more than convenience; we deliver confidence and complete peace of mind. Get in touch with us today to see how we can support you.

Read more

Tenancy Services in London: What’s Included and Why They Matter

Thinking about renting your property in London as a landlord or tenant can quickly become stressful if not managed properly. There are plenty of legal requirements and maintenance rules that require dedicated attention. In such cases, tenancy services help organise and handle complaints. But what is the role of the service provided for tenants, and are they needed in the London rental market?Let’s examine tenancy services, how they benefit landlords and tenants, and how service providers can use them to transform their businesses. What Are Tenancy Services?Tenancy services follow the tasks and responsibilities defined in the rental agreement made between the landlord and the tenant. Everything related to tenancy, including collecting rent, handling maintenance issues, and making the process smoother, is involved. In London, the legal requirements are strict, and it takes a professional service to ensure that both parties stay on track. What’s Included in Tenancy Services?Tenancy services are different for every landlord as per the nature, however, most of the services include the following important steps:1. Tenant Referencing and Right to Rent ChecksEnsure the tenant is suitable before a tenancy starts. This usually involves checking their identity, income, credit history, and previous landlord references. In the UK, landlords are also legally required to carry out Right to Rent checks, which confirm that the tenant has the legal right to live in the country. Failing to do this properly can lead to heavy fines.2. Tenancy Agreement SetupA tenancy agreement is a legal contract between the landlord and the tenant. It outlines key details like the rent amount, deposit, length of tenancy, and both parties’ responsibilities. Good tenancy services ensure the agreement is written, fair, and in line with current housing laws, such as the Housing Act and recent Renters’ Reform Bill updates.3. Deposit Collection and ProtectionThe deposits should be placed within the government-approved tenancy protection (TDP) scheme within 30 days of receipt. Estate agents like Cribs Estates manage these processes efficiently whilst providing all required documents and addressing rent or deposit-related issues. 4. Inventory and Check-In ReportsWhen the tenants move in, a complete inventory, which involves the items in the property and their condition, needs to be considered. The tenancy services include check-in reports, photos, and written conditions. By doing all this, the landlords and tenants are protected in case of any future disputes. 5. Ongoing Property ManagementAnother role of the tenancy services is to take care of your property matters. It can be anything related to rent collection, repair and maintenance, legal council notices, inspections, and all tenant communications. Landlords who live away from their homes can easily track and manage issues through estate agents. Read More: https://propertymanagementlondon.uk/6. End of Tenancy ProcessWhen the tenancy ends, tenancy services handle the check-out inspection, assess the property condition, settle any deposit disputes, and ensure a smooth move-out. This helps avoid stress and prevents delays for both sides.Why Tenancy Services MatterTenancy services offer more than management; they offer peace of mind. Landlords who want to reduce risks, save time, and ensure they are compliant with laws often use these services to get fast responses to issues without their involvement.The rental market is already competitive, and mistakes can further minimise the chances of getting properties listed. Failing to meet requirements like issuing a gas safety certificate, serving notices, and protecting deposits can lead to legal action. These services make the process more efficient and safe for landlords, whether new or seasoned in the market. Are Tenancy Services Only for Landlords?No. While many tenancy services are designed to support landlords, they also benefit tenants. A well-managed tenancy means tenants can expect better communication, faster repairs, and proper handling of legal documents. Since everything is properly documented, disputes over things like deposits or repairs are also less likely.Tenants renting through professional agencies with strong tenancy services often report a better overall experience than those dealing directly with individual landlords who may not follow best practices.Tenancy Services and Legal ComplianceThe UK government regularly updates its regulations regarding renting. Recent changes to EPC rules, such as introducing smoke and carbon monoxide alarms, and the Renters’ Reform Bill have introduced new landlord requirements. Keeping up with these changes can be difficult, especially if you own multiple properties or work full-time.Tenancy services ensure all legal requirements are followed. This includes serving correct notices, renewing safety certificates, and protecting landlord and tenant interests. Having professionals manage this side of renting gives everyone peace of mind.How Cribs Estates Can HelpCribs Estates offers reliable and comprehensive tenancy services for landlords and tenants across London. From finding the right tenant and setting up a secure agreement, to managing rent, repairs, and legal checks, we take care of everything so you don’t have to worry.Our team stays current with all legal changes, ensuring your tenancy stays compliant at every stage. Whether you're a landlord looking for hands-free property management or a tenant seeking a well-managed home, Cribs Estates is here to support you.

Read more

Can I Sublet My Rental Property? A Simple Guide for UK Renters

Renters living in the UK already think about subletting often during the day when they see some extra space in the home or if they plan to go away for a whilst. But you need to be smart before you hand over anything, as there are plenty of legal rules within your tenancy agreement, along with risks involved, that you need to consider first. Let’s briefly talk about subletting, when it’s allowed, and what will happen if you take any step without permission as a tenant orlandlord. What Is Subletting?Subletting is when a tenant rents out all or part of the property they’re renting to someone else. For example, you may want to rent out your spare room to help cover costs, or you might leave the property for a few months and allow someone else to stay there and pay rent.The new person living in the property is known as a subtenant, and as the original tenant, you become their landlord. This arrangement can work well if done properly, but problems can arise if it breaks the terms of your tenancy agreement or if you don't have permission from your landlord.Do I Need Permission to Sublet?In most cases, yes, you must get written permission from your landlord before sub letting. Many tenancy agreements clearly state that sub letting is not allowed or that it requires the landlord’s consent. One of the most common used agreements like Assured Shorthold Tenancies defines the UK rental market. Even if the agreement does not mentions the subletting, it is required that you ask from the landlord before making a move. Any move where subletting is done without the permission will result in breach of tenancy and could lead to the eviction or even a legal action. However, if your landlord agrees to sublet, you need to ask for permission so that you have a protection if there is any disagreement later. What If I’m a Council or Housing Association Tenant?Landlords who are living within the housing association properties or council houses may need to follow even strict rules. If they sublet the home without any permission, it will result in breach and charged as a criminal offence as per the social housing fraud act of 2013. This law was made to prevent poeple from making any illegal profits by renting thier houses to others. In cases where anyone is found guilty will lead to fine and prison, so it is the responsibility of both parties to check this point before subletting. What Are the Risks of Sub Letting Without Permission?Sub letting without permission can lead to serious consequences. Your landlord can serve you notice, often under Section 8 of the Housing Act, for breaching your tenancy terms. If successful, the court may order you to leave the property.Also, you may find it difficult to deal with the sub tenant if they stop paying rent or damage the property. Since you are acting as their landlord, you are legally responsible for collecting rent and maintaining the terms of their tenancy. If things go wrong, the original landlord will still hold you accountable.Some tenants also risk losing their deposit if the landlord finds out and ends the agreement early due to sub letting.What About Sub Letting Just One Room?Sub letting one room instead of the whole property may seem harmless, especially if you're still living there. However, the same rules apply. You still need the landlord’s written permission, and you should check if this changes the legal nature of the tenancy.In some cases, having someone live with you might make them a lodger rather than a sub tenant. A lodger shares the home with the main tenant or homeowner and often uses shared areas like the kitchen and bathroom. The rights of a lodger are different from those of a sub tenant, and so are the responsibilities.The line between a lodger and a sub tenant can be thin, so it’s always best to get advice before making a decision.How to Sub Let LegallyIf you decide to go ahead with sub letting, here are the key things to do:Speak to your landlord or letting agent and ask for written permission.Review your tenancy agreement to understand any rules or restrictions.Use a clear written agreement between you and the sub tenant to outline rent, notice periods, and house rules.Make sure the property meets all safety standards, including gas and fire safety regulations.Can a Landlord Refuse Subletting?Yes, landlords have the right to refuse a request to sublet, especially if it’s not allowed under your tenancy agreement. Some landlords worry about losing control over who lives in the property, or they may be concerned about rent payments and damage.However, if your tenancy agreement says that the landlord “will not unreasonably refuse” sub letting, they must give a fair reason if they say no. If you believe your landlord is being unfair, you can seek advice from a housing charity or legal expert.How Cribs Estates Can HelpAt Cribs Estates, we understand how confusing the rules around sub letting can be. Whether you’re a tenant hoping to sub let your home legally or a landlord looking to protect your property, our expert lettings team can guide you through the process.We offer clear advice, help with tenancy agreements, and full property management services so that every arrangement is fair, legal, and stress-free. If you’re unsure about your rights or next steps, get in touch with Cribs Estates today, we’re here to help you stay compliant and confident in your rental decisions.Read More: Does a Landlord Pay Council Tax?

Read more

What Is a Buy to Let Mortgage?

Anyone who is a homeowner in the UK considering moving from their house but wants to change their current property to a rental should consider a let-to-buy mortgage. It is a modern way to rent out your existing home whilst purchasing a new one for yourself, and it's become a popular choice for landlords looking to invest in property without selling their homes.  Understanding Let to Buy Mortgages A let to buy mortgage is designed for people who want to let out their current home and use the equity in it to help buy a new property to live in. It’s different from a traditional buy to let mortgage, where you purchase a property specifically as a rental investment. With let to buy, you already live in the home, you just change its purpose. In practical terms, you remortgage your current home using a buy to let mortgage, then use the equity released from that remortgage as the deposit for your new residential home. You will now own two properties: one that you live in and one that you rent out. Why Consider Let to Buy? There are many reasons someone might choose a let to buy mortgage. Perhaps the housing market is slow, and selling your property right now wouldn’t give you the price you want. Or maybe you’re moving in with a partner or relocating for work, but you don’t want to lose your current home just yet. Let to buy gives you flexibility. You can generate rental income from your old property whilst settling into a new one. If you later decide to sell the rental property, you still have that option. Or, you may find you enjoy being a landlord and wish to continue building a property portfolio. How the Process Works To begin with, you will need to apply for a buy to let mortgage on your existing home. This replaces your current residential mortgage and allows you to legally rent out the property. You must inform your current mortgage lender of your plans, and it is not legal to let a property under a standard residential mortgage without permission. Once your let to buy mortgage is approved and completed, you’ll typically release some equity. That money can then be used as a deposit for a residential mortgage on your new home, which your estate agent can carry out.  Requirements for a Let to Buy Mortgage Landlords must consider some requirements, such as having enough equity in the existing home to use as a deposit for the new home, which is generally a minimum of 25%. The income generated from the old property must be easily affordable by the lender. Moreover, the credit score, income, and other debts will be checked to ensure you can afford a mortgage even with tenants at your place. Some lenders also ask that the new home be your primary residence and that you have no plans to return to your previous property.  The Risks to Consider Let to buy mortgages are flexible, but they come with a responsibility. When you become a landlord, you now need to follow all legal duties, including safety measures, tenancy agreements, and property maintenance. You must also remember when the property will be vacant to calculate rents. Apart from this, there is also a chance that your property gets affected by the interest rate and mortgage rules. When your rental income cannot cover the mortgage, the new home becomes costly, thus adding to your financial burden.  Tax Implications The impact is usually on the tax situation because renting the old home will be subject to income tax. You will also be liable for GST when you sell the property on a profit margin, as it is not your primary residence now.  The stamp duty rate increases when you purchase the new home because you now own multiple properties. So it’s a good idea to have a reliable estate agent like Cribs Estate who fully understands how to manage it from all aspects.  Is Let to Buy Right for You? Let to buy mortgages aren’t for everyone, but for the right person, they can be a smart move. If you have strong equity, a solid income, and a clear plan for becoming a landlord, this approach can allow you to move forward without letting go of a valuable asset. It’s especially useful in situations where selling is difficult or if you think your property’s value may rise in the future. But it does require a good understanding of both the property and rental markets, as well as a realistic view of what being a landlord involves. How Cribs Estates Can Help You with Let to Buy At Cribs Estates, we assist homeowners and landlords across London in making the right property decisions, including when considering a let to buy mortgage. Our expert team can guide you through the legal and financial aspects, help you prepare your current home for rental, and even manage the letting process for you. Whether you’re new to property investment or looking to grow your portfolio, we’ll help you take the next step with confidence. From tenant sourcing and compliance to full property management, we’ll handle the details whilst you focus on your future plans.

Read more

Property search

Residential Lettings
Price
Min price
Max price
Number of Bedrooms
Min bedrooms
Max bedrooms
Find properties
x