34 Years, 450 HMOs: What We’ve Learned About Building HMOs That Actually Let

June 22, 2026

We have come a long way in 34 years. As the world evolves, so does the HMO market, and over time what we already believed was an outstanding investment model has become stronger, more refined, and more resilient each year.

That does not mean the journey has always been simple. Property has a way of teaching you what matters, especially when markets change, costs rise, legislation moves, tenant expectations evolve, and investors become more aware of what can go wrong when a property is not prepared properly.

We have seen a lot in that time. We have seen developers appear, make noise, sell a few deals, and then vanish. We have seen deal packagers enter the market with limited knowledge, promising investors attractive numbers without the practical experience needed to deliver a reliable HMO. We have also seen too many investors arrive cautious, not because of anything we have done, but because they have had their fingers burnt elsewhere by people who did not do the job properly.

Foot Forward Property Investments has been built differently. We are built, we are established, and we are here to stay.

Over the past 34 years, a lot of regulatory and financial change has come and gone. We have lived through lending changes, planning changes, licensing changes, tax changes, rising build costs, interest rate shifts, and more cautious investor sentiment. We survived the 2008 financial crash, when many property businesses did not. We have survived every storm that came our way because our model has never been based on shortcuts.

Having built over 450 HMO properties for our investors, one thing we have always done is the job properly. That means a full back-to-brick refurbishment, all new everything where required, and a property prepared for long-term reliability rather than short-term appearance.

We do not do “landlord lick of paint specials.” We never have. A tired property with a quick coat of paint, a few cramped rooms, and the cheapest possible refurbishment quote is not our idea of a finished investment. It may look acceptable in photographs for a short period, but it is not a foundation for long-term investor confidence.

A proper HMO must work in the real world. It must work for tenants, for compliance, for maintenance, for letting demand, and for the investor who expects the property to perform after completion, not just look good in a brochure.

This is our warts-and-all retrospective on what 34 years and more than 450 HMO properties have taught us. Some project details have been anonymised to protect investors, tenants, and exact property locations, but the lessons, principles, and experience are real.

What We Mean by an HMO That Actually Lets

An HMO that “actually lets” is not simply a property with multiple bedrooms. It is a property that tenants genuinely want to live in, that meets the required standards, that is finished properly, and that can hold its own in a competitive rental market.

That means the details matter. Room sizes matter. Communal space matters. Bathrooms matter. Fire safety matters. Sound insulation matters. Internet provision matters. Storage matters. Flooring matters. The kitchen matters. The way the property feels when someone walks through the door matters.

The HMO market has changed significantly over the years. Tenants expect more now, and rightly so. Many are working professionals who want a clean, comfortable, well-designed home, not just a room in a shared house. What might have passed as acceptable accommodation years ago would not necessarily be strong enough today.

That is one reason we believe our investment model has strengthened over time. The market has become less forgiving of poor quality. Investors are asking better questions. Tenants are making more informed choices. Local authorities expect higher standards. Lenders and surveyors are more cautious. In that kind of market, quality matters more, not less.

A property that is built properly has a better chance of standing out. A property that has only been dressed up to sell can quickly become a problem.

The Early Lesson: Cheap Work Becomes Expensive Work

This is not a lesson we learned because we cut corners ourselves. We have never built our model on cutting corners, using poor quality refurbishment, or doing a “landlord lick of paint special.” This is something we are telling you as the reader because we have seen, time and time again, how expensive cheap work becomes in the HMO market.

A low-cost refurbishment can look attractive at the start. It can make the spreadsheet look stronger, reduce the headline spend, and create the illusion of a better return. But in real property, especially in HMOs, the cheapest route is rarely the safest route.

HMOs work hard. Tenants use the kitchens, bathrooms, heating systems, electrics, doors, flooring, appliances, and communal spaces every single day. If the refurbishment has only been done on the surface, the property usually reveals that weakness once people move in. That can mean more maintenance, more disruption, more complaints, more voids, and more pressure on the investor.

That is why our approach has always been different. We do not believe in a quick lick of paint, a few cramped rooms, and the cheapest refurbishment quote available. That may create something that looks acceptable for a short period, but it does not create the kind of long-term reliability investors should be looking for.

For us, doing the job properly means a full back-to-brick refurbishment, all new everything where required, and a property designed to perform over the long term. It means looking beyond how the property photographs and focusing on how it will actually operate once tenants are living there.

This is one of the reasons we have been able to build more than 450 HMO properties for investors. We have always taken the view that the hidden parts of a refurbishment matter just as much as the visible finish. In many cases, they matter more.

Cheap work might save money at the start, but it often costs more later. Proper work protects the property, the tenant experience, and the investor.

Why We Refurbish Back to Brick

A back-to-brick refurbishment is not the easiest route. It is not the cheapest route either. It is, however, the route we believe gives investors the strongest foundation for long-term reliability.

A surface-level refurbishment can be misleading. New paint, new furniture, and a few staged photographs can make a property look ready. But HMOs are not judged by how they look on day one. They are judged by how they perform month after month, year after year, with multiple tenants living in the property and using it daily.

That is why we look at the property properly. We consider the electrics, plumbing, fire safety, layout, flooring, bathrooms, kitchen, communal space, heating, ventilation, finishes, and practical durability. The aim is not to create something that looks finished. The aim is to create something that is finished properly.

This approach is especially important in older UK housing stock. Many of the properties that make good HMOs were not originally built for modern shared living. They need careful refurbishment, thoughtful design, and proper investment before they can become reliable long-term assets.

We do not believe in hiding problems behind plasterboard. We do not believe in patching over issues just to keep costs down. We do not believe in squeezing every possible room into a property if it compromises the tenant experience. We do not believe in handing investors a property that has been made to look good rather than made to work properly.

That mindset has shaped every part of our model.

Project One: The Joist Lesson

One anonymised project, which we refer to internally as “The Joist Lesson”, became an important example of how we protect investors when unexpected issues appear.

This project originally came about on a property we were developing for ourselves personally. As with any acquisition, there is only so much you can inspect before purchase. When we view properties to acquire for investors, we cannot exactly ask the seller if we can start ripping up carpets and floorboards during the viewing. You make your assessment based on experience, visible evidence, professional checks, and the information available at the time.

On this particular job, once works began, we quickly discovered that the floorboards and joists needed redoing.

That is a serious issue. It is also the kind of issue that separates responsible developers from the rest.

The wrong response would have been to patch the problem, minimise the work, hide it, or look for a way to push the cost onto someone else. That is not how we operate.

Our view was simple. This was not an investor issue. It was a Foot Forward issue. We footed the bill for the works, put the property right, and made sure the job was done properly.

That example still matters because it shows how we think. Doing the right thing when nobody is watching is not a slogan to us. It is a standard. Investors may not see every decision made on site, but those decisions affect the long-term performance and reliability of the property.

Today, we use a RICS accredited surveyor to check our properties, which helps reduce the risk of major hidden issues being missed. Over the years, our own experience has also sharpened. We know more about what to look for, what to question, and what warning signs should never be ignored.

No responsible developer should claim that refurbishment risk can be removed entirely. Property can still reveal surprises once works begin. The important question is how those surprises are handled.

For us, the answer is clear. If it is our issue, we deal with it.

Why We Introduced Our Price Lock Promise

That practical experience helped shape one of the most important protections in our model: our price lock promise.

Property investment can already feel complex enough without costs changing halfway through the process. Investors deserve clarity before they commit, not surprises after they have reserved a property.

Our price lock promise was put in place to protect investors who work with us from surprise costs and price hikes, which are all too common with some other developers.

The price you see on the brochure is the price you pay.

That promise requires discipline. It means we need to understand our refurbishment costs properly. It means we need to be experienced enough to price a project realistically. It means we need to take responsibility for the process rather than treating the investor as a backup fund whenever something becomes more expensive.

For us, it is one of the clearest examples of investor-first thinking. It is easy for a company to say it cares about investors when everything goes smoothly. It is much more meaningful when an unexpected cost appears and the company still chooses to do the right thing.

The price lock promise exists because we know investors need confidence, not uncertainty. They need to know what they are committing to. They need to know that the brochure price is not just an opening figure before a list of extras begins.

That is why we keep it simple. The price you see is the price you pay.

Project Briar: Building a Stronger, Greener HMO With the Investor

Project Briar is a more recent example of how our model continues to evolve.

This has not been a standard HMO refurbishment. We have worked closely with the investor to develop a genuinely special project, one that reflects where we believe the better end of the HMO market is heading: more efficient, more spacious, more durable, and more attractive for tenants.

A key part of Project Briar has been the decision to include a market-leading renewable energy system within the property. The aim is to reduce running costs, help hedge the investor against rising energy costs, and create a much more environmentally friendly HMO.

For investors, this matters because outgoings can have a direct impact on long-term performance. Energy efficiency is no longer a small detail. It can influence running costs, tenant appeal, future-proofing, and the overall resilience of the investment. While no investment should ever be assessed on one feature alone, a well-considered renewable energy system can help strengthen the property’s position in a changing market.

For tenants, it also matters. A more energy-conscious property can offer a better living environment and a clearer sense that the home has been designed with long-term quality in mind. More tenants are aware of energy use, comfort, and environmental impact than ever before. A property that reflects those priorities can feel more modern, more considered, and more responsible.

Project Briar has also allowed us to work with the investor on a larger, more spacious extension. Rather than simply creating the minimum amount of extra space required, the aim has been to give tenants a better standard of accommodation. More space can improve how the property feels, how communal areas function, and how comfortably people can live together.

That point matters because HMOs should not be designed only around room count. A strong HMO also needs balance. Bedrooms, bathrooms, kitchens, communal spaces, circulation, storage, and outdoor or extended areas all need to work together.

Project Briar shows what can happen when an investor wants to think beyond the basic model and we are able to bring our experience into the design, refurbishment, and long-term planning of the property. It is still rooted in the same Foot Forward principles: proper refurbishment, strong due diligence, investor protection, and tenant-focused design. The difference is that the project also reflects a more forward-looking approach to sustainability and cost control.

For us, this is exactly how the HMO market should evolve. Not through shortcuts. Not through cosmetic refurbishments. Not through squeezing in rooms for the sake of headline returns. Through better buildings, better systems, better layouts, and better long-term thinking.

How Our Model Has Evolved Over Time

Our core principle has not changed. We have always believed in doing the job properly. But the way we deliver that principle has become more refined over time.

After 34 years, our process is more detailed, more structured, and more cautious in the right places.

We are stricter on acquisition. We look carefully at location, demand, licensing, planning considerations, layout potential, build costs, and long-term viability. We do not want to force a property to work if the fundamentals are not strong enough.

We are more detailed with survey and due diligence. The use of a RICS accredited surveyor is an important part of that. Professional inspection does not remove every possible refurbishment surprise, but it helps reduce risk and gives investors a more robust process.

We have refined our refurbishment standards. Our back-to-brick approach reflects what we believe is needed for reliability, tenant satisfaction, and long-term investor confidence.

We have strengthened investor protection. Our price lock promise was created because investors should not be exposed to surprise price hikes after they have committed.

We have also evolved our view of tenant experience. Years ago, many people in the market treated HMOs as a numbers game. More rooms meant more rent, and that was where the thinking stopped. We do not see it that way. A strong HMO has to be liveable, durable, compliant, efficient, and well located. The numbers need to work, but the property has to work too.

Project Briar is a good example of that evolution. It shows how the model can adapt to modern investor priorities, including cost control, environmental responsibility, improved tenant space, and long-term resilience.

That evolution has made our model stronger. It has allowed us to adapt through changing markets rather than relying on outdated assumptions.

Surviving the 2008 Crash and Every Storm Since

The 2008 financial crash tested the property industry. It tested developers, investors, lenders, landlords, and agents. Many property businesses did not survive it.

We did.

That period reinforced the importance of strong fundamentals. When the market is easy, weak businesses can look good. When conditions become difficult, the difference between a proper model and a fragile one becomes much clearer.

Since then, we have seen plenty of other storms. Lending criteria have changed. Interest rates have moved. Costs have risen. Regulation has tightened. Investor expectations have shifted. Local authority requirements have become more detailed. Tenant standards have improved.

Through all of that, our approach has remained grounded in the same principle: build properly, protect investors, and focus on long-term performance.

That does not mean every project is easy. It means our standards do not disappear when a project becomes difficult.

The Problem With Poor Developers and Deal Packagers

One thing that has sadly become worse over time is the number of poor quality developers and inexperienced deal packagers in the property market.

Some people understand marketing better than refurbishment. Some understand selling better than compliance. Some rely on optimistic figures without enough practical experience behind them. Some have never managed a serious refurbishment programme. Some are here for a short time and then disappear when the market changes.

Unfortunately, many investors have had their fingers burnt by sharks in the past. That makes trust harder to build, even for established businesses like ours.

We understand that caution. In fact, we think it is sensible.

HMO investment is a serious financial decision. Investors should ask detailed questions. They should challenge the numbers. They should understand the refurbishment process. They should ask what happens if costs rise or unexpected works appear. They should look carefully at who is actually responsible for delivery.

Our job is to make investors feel completely comfortable, not through pressure or hype, but through clarity.

We explain how the property is selected. We explain the refurbishment standard. We explain the price lock promise. We explain the role of professional checks. We explain why we do not do cheap cosmetic refurbishments. We explain what makes the HMO suitable for tenants, not just investors.

Trust is not built by saying “trust us.” It is built by showing how the process works and standing behind it.

If you are exploring HMOs for sale and want to understand how our current opportunities are structured, you can view our latest HMO investment opportunities here: HMO properties for sale.

Why Investor Protection Matters

Investor protection is not only about paperwork. It is about how decisions are made before, during, and after refurbishment.

When we look at a potential HMO, we are not simply asking whether it can be sold. We are asking whether it should be sold as an investment. That is a different standard.

A property may look attractive on the surface but still be wrong for our model. The location might be too weak. The layout might be compromised. The refurbishment costs might be too uncertain. The tenant demand might not be strong enough. The property might need too much work to make sense at the right price.

Being investor-first sometimes means saying no.

It also means being transparent about risk. No property investment is risk-free. Rental demand, finance costs, regulation, maintenance, local markets, and wider economic conditions can all affect performance. Investors should always carry out their own due diligence and take appropriate independent legal, financial, mortgage, and tax advice before making an investment decision.

Our role is to provide a properly prepared opportunity, a clear process, and the experience that comes from more than three decades in property.

What Investors Should Ask Before Buying an HMO

A serious investor should never feel awkward about asking detailed questions. The right developer should welcome them.

Before buying an HMO, it is worth asking:

• Is the property being fully refurbished or only cosmetically improved?
• Is the refurbishment back to brick?
• What happens if unexpected works appear?
• Can the price increase after reservation?
• Who is responsible for the refurbishment?
• Is a qualified surveyor involved?
• Are the rental assumptions realistic?
• What evidence supports tenant demand?
• Are the rooms genuinely liveable?
• Does the layout support long-term tenant satisfaction?
• Is energy efficiency being considered?
• Are running costs being assessed properly?
• Is the developer experienced in HMOs specifically?
• Has the company been through difficult market cycles?
• What protections are in place for the investor?

These questions matter because an HMO is not just a purchase. It is an operating asset. The quality of the property, the strength of the location, the layout, the refurbishment, energy efficiency, and the experience of the people delivering it all affect what happens after completion.

A good HMO investment should stand up to scrutiny.

Why “Done Properly” Still Wins

There will always be cheaper ways to create an HMO. There will always be someone willing to squeeze in another room, reduce the specification, choose the cheapest contractor, or cover up old problems with a quick “landlord lick of paint special.”

That is not us.

We do not cut corners. We do not believe in dressing up tired properties and pretending they have been properly refurbished. We do not believe in hiding poor work behind fresh paint. We do not believe in selling investors a property that looks good for completion day but creates avoidable problems later.

Our approach is more demanding because the asset is more demanding.

A proper HMO has to satisfy tenants, meet regulatory requirements, support long-term maintenance, and give investors confidence. Those four things have to work together. When one is ignored, the others often suffer.

If tenants do not like the property, letting performance can suffer. If compliance is weak, risk increases. If refurbishment quality is poor, maintenance can become expensive. If running costs are ignored, long-term performance can be affected. If investors are not protected, trust breaks down.

That is why “done properly” still wins.

What 34 Years Has Taught Us

After 34 years, our biggest lesson is that property rewards patience, discipline, and quality.

The HMO market will continue to evolve. Regulation will continue to change. Tenant expectations will continue to rise. Finance will continue to move through cycles. Energy costs and environmental expectations will continue to shape how good properties are designed. New developers and packagers will continue to enter the market, and some will leave just as quickly.

We cannot control every external factor. We can control our standard.

We can control whether we choose good locations. We can control whether we refurbish properly. We can control whether we use professional checks. We can control whether we protect investors from surprise price hikes. We can control whether we think about energy efficiency, tenant space, and long-term reliability. We can control whether we make decisions based on quality rather than short-term appearance.

That is what we have done across more than 450 HMO properties, and it is what we will continue to do.

For us, HMOs that actually let are built long before the tenant moves in. They are built during acquisition, design, due diligence, refurbishment, compliance, specification, and every quiet decision made behind the scenes.

That is where experience matters.

And after 34 years, we still believe that doing the job properly is the strongest investment principle there is.

Frequently Asked Questions About HMO Investment

What makes a good HMO investment?

A good HMO investment usually combines the right location, strong tenant demand, compliant design, suitable room sizes, good communal space, proper refurbishment quality, energy efficiency, and realistic financial assumptions. The property should not just look good in a brochure. It should function well for tenants and remain reliable for the investor over time.

Why does Foot Forward use back-to-brick refurbishments?

We use back-to-brick refurbishments because long-term reliability depends on more than surface-level appearance. Paint, furniture, and decoration matter, but the hidden parts of a property often matter more. Electrics, plumbing, fire safety, structure, insulation, layouts, and finishes all affect how the property performs after tenants move in.

Does Foot Forward ever do quick cosmetic refurbishments?

No. We do not do “landlord lick of paint specials.” Our model is based on proper refurbishment, not cosmetic cover-ups. We believe investors need properties that are built for long-term reliability, not properties that simply look acceptable in photographs.

What is the Foot Forward price lock promise?

Our price lock promise means the price you see on the brochure is the price you pay. It was introduced to protect investors from surprise costs and price hikes during the investment process. If an issue arises that belongs to us, we do not believe it should automatically become the investor’s problem.

Can unexpected issues still appear during an HMO refurbishment?

Yes. Property refurbishment can reveal issues that were not visible at viewing stage, especially once floors, walls, or ceilings are opened up. That is why experience, surveying, due diligence, and responsible project management matter. We use a RICS accredited surveyor to help reduce this risk, and our own experience helps us identify warning signs earlier.

Why does energy efficiency matter in HMO investment?

Energy efficiency can affect running costs, tenant comfort, environmental impact, and long-term resilience. In projects such as Project Briar, we have worked with the investor to include a market-leading renewable energy system designed to reduce outgoings, help protect against rising costs, and create a more environmentally friendly property.

Why should investors be cautious with HMO deal packagers?

Investors should be cautious because not every person selling HMO opportunities has deep refurbishment, compliance, development, or long-term management experience. Some may rely on optimistic numbers or low-cost refurbishments that do not hold up over time. A serious investor should ask detailed questions about track record, refurbishment quality, pricing, survey process, tenant demand, and what happens if problems occur.

Has the HMO market changed over the past 34 years?

Yes. The market has changed significantly. Regulation, licensing, finance, tenant expectations, build costs, competition, and environmental considerations have all evolved. In our experience, that has made proper refurbishment, strong due diligence, and long-term thinking more important than ever.

Is HMO investment risk-free?

No property investment is risk-free. Rental demand, finance costs, regulation, maintenance, local market conditions, energy costs, and wider economic factors can all affect performance. Investors should always carry out their own due diligence and take appropriate independent financial, legal, mortgage, and tax advice before making an investment decision.

Where can I view Foot Forward’s current HMO opportunities?

You can view our current HMO investment opportunities here: HMO properties for sale.

 

Written by Thomas Abram – Group Marketing Executive