A survey by buy-to-let (BTL) lender Landbay found that among landlords with houses in multiple occupation (HMOs), around half use property as their sole source of income.
Just under 30% of landlords who took part in the survey owned an HMO property or portfolio; 72% through a limited company.
Nearly half of the properties were self-managed by landlords – a third of whom owned portfolios with more than 20 properties.
The most popular size of HMO portfolio was the smallest, between four and 10 properties, with 34% falling into that category.
The highest proportion of HMOs were in London and the South East (47%), followed by the East Midlands.
An HMO landlord said: “Our company is very happy with our portfolio performance in London and we intend to continue at least for the present.”
Rob Stanton, sales and distribution director at Landbay, said: “Our survey results show continuing confidence in HMOs.
“Despite proposed rental reforms and local authority licensing schemes, the market remains resilient.
“With an ongoing housing shortage, demand is stronger than ever for decent and fairly managed house shares.
“HMO landlords have received a boost from falling utility bills.
“This means higher net rental which can make it easier to borrow a greater amount against the property’s value.
“In addition, council tax banding for individual rooms in shared houses has been reversed so HMOs are classed as a single dwelling as before
“As long as investors do their research thoroughly before making the leap, HMOs can give great returns.”