The rocketing growth of HMO (House of Multiple Occupation) investments in Greater Manchester has seen many investors searching for the best areas to buy. With Article 4 affecting large parts of the city centre and the wider borough of Greater Manchester, investors need to look at specific locations to not only have planning permission but also make significant returns on their investment.
Over the past couple of years, there has been an influx of investors looking towards Greater Manchester to begin building HMO (House of Multiple Occupation) portfolios alongside their current properties; particularly brand new investors planning to make their mark with an HMO for the first time.
As one of the largest student cities in the country, paired with a huge expansion in employment opportunities, the target markets for HMOs are also looking towards Manchester. Finding affordable, hassle-free accommodation as quickly as possible has become a greater priority for these demographics.
Whilst the returns on HMO properties speak for themselves (providing you are compliant with regulations and source the correct tenants for your property, which Edward Mellor is more than happy to assist you with), finding the right locations to operate them from is certainly no easy feat.
Article 4, the regulation constricting planning developments, cripples areas of Manchester when it comes to applying to convert standard properties into an HMO and operate one as such. As Edward Mellor is a strong believer in giving landlords and investors back control of their time, it is crucial to ensure none is wasted in finding the optimal areas to invest.
Any Article 4 area means applying to convert property and operate it as an HMO is nigh on impossible. Therefore, to save time and effort as a landlord and investor, it is in your best interest to be aware of the following Article 4 areas:
The best areas to invest are high catchment areas for working professionals, commuters, and students who don’t mind being a little further afield from the city centre, but still within easy accessibility of their educational facilities and workplaces.
On the face of it, Salford may entice lots of investors from further afield. With MediaCityUK having brought a wealth of employment opportunities from other areas of the country up to the North West, HMOs in Salford are ideal for working professionals looking for a hassle-free base here in Manchester to work from. In addition, the University of Salford has an extensive student catchment, which is guaranteed to attract a large portion of prospective tenants. The drawback to investing in a Salford HMO, however, comes to competition. The area is becoming vastly over-saturated, with over 400 room adverts in the area alone on SpareRoom (keep in mind there will be individual rooms under each listing as well!). Article 4 also cripples the vast majority of the area, so starting afresh is going to be remarkably difficult.
Areas that have little competition, whilst also featuring the primary assets an ideal HMO target tenant would be looking for, are crucial to ensuring occupancy rates remain high, void periods low, and consistent demand. Areas such as Tameside feature great transport links from its town centres into Manchester city centre, whilst Stockport goes one step further and offers direct links to Manchester, and London which can also be reached in under two hours. This is ideal for those who are happy to commute to the capital whilst benefiting from the lower living costs.
Of course, location is just one of the keys to successful investment with HMO. By ensuring the correct location, you are more likely to drive particular target tenants into wanting to rent a room. For more details on sourcing specific tenant demographics for your properties, give us a call on 0161 820 6638.