Why Invest in residential property?
The UK residential property market is one of the most popular investment markets in the world, due to the huge demand and undersupply of suitable accommodation across the country, investors are able to achieve yields in excess of 6% in the most profitable locations. It is estimated that out of the 23.5 million households in the UK, over one third are occupied by renters.
With property prices doubling on average in the UK every 10-years, investing in residential property is a great option for investors looking to invest for the medium to long-term, earning high returns on a monthly basis whilst their property also increases in value. For those looking to invest using a mortgage of financing, residential property offers you the opportunity to leverage your purchase, further maximising your return.
Types of Residential Properties
House of Multiple Occupancy (HMO)
House of multiple occupancy or House in multiple occupation are residential properties where ‘common areas’ exist and are shared by more than one household. A HMO is a house or flat where both of the following apply:
- At least three tenants live there, forming more than one household.
- The occupants share toilet, bathroom or kitchen facilities with other tenants.
Single Household Dwelling
Single household dwellings are residential properties that are occupied by a single household. These are typically houses or flats designed and intended for occupancy by one family or a group of people living together as a single household