The North West has the highest concentration of HMOs in the UK, accounting for 17.9% of the market according to the latest quarterly data from Lendlord.
The platform’s Q4 2025 HMO Data Analysis Report, based on a sample of 1,158 properties, shows Greater London close behind with a 16.5% share.
However, the strongest rental yields are found elsewhere. The North East recorded the highest average yield at 15.1%, although HMOs make up just 3.6% of stock in the region.
The data highlights sharp regional contrasts. Greater London commands the highest average HMO value at £684,724, up £24,497 on Q4 2024, and generates the highest annual rental income at £55,017. By comparison, average HMO values in the North East stand at £232,461.
EASING YIELDS
Across the UK, average HMO yields have eased to 9.6%, down from 10.4%, but rental income has climbed. The average annual rent rose by more than £5,000 year-on-year, increasing from £28,200 in Q4 2024 to £33,400 in Q4 2025.
Aviram Shahar (main picture, inset), Co-founder and CEO of Lendlord, says: “The importance of HMOs to property investors has never been clearer and our Q4 2025 figures highlight that yields have remained fairly constant year on year with the average annual rent increasing by an impressive £5,000 in just one year.”
