Are you thinking about getting into buy-to-let? Well, according to a new survey by Landbay, there’s a good reason to be optimistic, especially if you’re considering HMOs.

HMO landlords, those who rent out properties with multiple tenants sharing, are feeling more confident about the future than the average buy-to-let investor.

The survey found that 43% of HMO landlords are positive about their businesses, compared to just 33% of all landlords. This is a big jump from last year, when only 27% of landlords were feeling positive. That’s a clear sign that the sector is thriving!

Why the Optimism?

So what’s driving this positive feeling among HMO landlords?

• Demand is high: With house prices still sky-high, many people are struggling to get on the property ladder. This means there are plenty of tenants looking for rental accommodation.
• Buy-to-let is resilient: The buy-to-let sector has been through a lot, from economic downturns to changes in government policy, but it’s still going strong.

Not All Landlords Are Happy

While HMO landlords are feeling confident, the same can’t be said for all buy-to-let investors. Landlords with smaller portfolios, those with 4-10 properties, are more likely to feel negative about their business.

What’s Causing the Worry?

So, what’s got some landlords worried?

• Uncertainty about the future: The recent election and the possibility of changes to rental laws are causing some jitters.
• Potential changes to eviction rules: Both the Conservative and Labour parties have pledged to get rid of “no-fault” evictions, known as Section 21s. This could make it more difficult for landlords to evict tenants, which is causing concern.

The Takeaway for Investors

The news is good for HMO landlords, with strong demand and a resilient market. But it’s important to keep in mind that there are challenges ahead, and some landlords are feeling uneasy about potential changes to the law.

If you’re considering buy-to-let, it’s essential to do your research and understand the risks and rewards involved. Talk to financial advisors and experts in the field to get the best advice for your specific circumstances.