HMO profits in danger due to energy crisis

Whilst requiring more management, HMO’s have traditionally attracted a higher profit. But that is now in danger of changing where landlords paying all the bills are seeing large rises in their energy bills.

The energy crisis has struck at a time when HMO landlords are already grappling with higher energy bills because of the shift to home working, driving up home energy usage.

The average buy-to-let landlord earned twice the average UK annual wage through rental income alone, new figures from BVA BDRC suggest.  But energy price rises are subduing these margins, with many landlords are reporting energy bill rises of 25%.

This will be further exasperated by the recent decision by the Bank of England’s decision to raise the base rate from 0.1% to 0.25% (see here) will see many landlords getting increased monthly re-payments.

This being on top of the potential council tax increasing over the next three years (see here).

HMO landlords need to look at their budgets, and not be caught out.




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