Are Apartments a Good Investment in 2025?

October 9, 2025

When you scroll through social media or browse property platforms, you will likely see glossy CGI adverts for “high rental demand apartments” in Manchester, Liverpool or Leeds. They look sleek and modern, but beneath the surface lies a very different reality.

For many investors, these apartments are not solid long-term investments. While they are heavily marketed, often by investment brokers and advisors who earn high commissions, the truth is that these deals usually work far better for the seller than for the investor.

The Hidden Weakness of Apartments

Apartments might seem easy to manage, but they come with serious downsides. The first problem is cost. They are expensive for what they offer, and unlike houses or HMO properties, their price growth is slow. Over time, apartments tend to stagnate in value while HMO properties continue to rise due to strong rental demand and limited supply.

Then there are the service charges and maintenance fees. These often eat away at profits, leaving investors with very little actual return. In many cases, apartments are leasehold, which means you never fully own the property and remain tied to annual ground rent and additional fees. That makes them far less attractive compared to our fully freehold HMO properties, where investors hold complete ownership and control.

The Lifestyle Reality

Many assume that people prefer to live in apartments, but the reality tells a different story. Apartments lack outdoor space, privacy and community. There’s no garden to relax in, and often you have to pay extra for parking. Tenants today are increasingly looking for comfort, convenience and value — all of which HMOs deliver in abundance.

In shared HMO properties, tenants get private ensuite rooms, communal kitchens and living areas, and often outdoor space. This lifestyle feels far more homely than an apartment block where neighbours barely speak to each other.

The Oversupply Problem

Cities like Manchester, Salford, Liverpool and Leeds are flooded with new-build apartments. Many of them sit half-empty, and in some cases, developers have gone bust before finishing construction. That leaves investors stuck with unfinished projects and lost capital.

Even the apartments that do get completed often struggle with occupancy. Too many units, too few long-term tenants, and inflated “promised” yields that never materialise.

Why HMOs Are a Far Stronger Investment

HMO properties stand in a completely different category. Instead of relying on one single tenant, you receive income from five or six individuals. This multi-let model spreads your risk and boosts your cash flow. If one tenant moves out, you still have several others covering your overheads.

HMO properties also appreciate better than apartments. Demand for affordable, quality rooms continues to grow, especially in strong working towns like Doncaster, Wakefield, Rotherham and Scunthorpe. Our HMO developments are located near transport links and employment hubs, making them constantly in demand.

Capital Appreciation — The Silent Earner

Capital appreciation is a silent earner for every investor. Over time, it compounds and grows your wealth in the background. HMOs outperform apartments here too. While apartments often lose value or stay flat due to oversupply, HMO properties keep appreciating thanks to rising demand, limited supply and better land value growth. When you combine strong rental yields with ongoing appreciation, the long-term returns from HMOs easily surpass those of apartments.

Maintenance costs on HMOs are lower too. You control the property, there are no hidden service fees or management layers, and because our properties are fully managed and freehold, your income stays in your pocket.

The Bottom Line

Apartments might look glamorous in glossy adverts, but for long-term investors who want stability, growth and real returns, they fall short. HMOs offer stronger yields, real ownership, consistent tenant demand and far less financial risk.

At Foot Forward Properties, we have over 23 years of experience developing and managing high-yield HMO properties. Our fully managed investments deliver hands-free returns and are built for long-term success — not short-term hype.

If you are looking for a genuine, high-performing property investment that stands the test of time, explore our latest opportunities at www.footforwardproperties.co.uk/hmo-for-sale.

Frequently Asked Questions

Are apartments still a good investment in 2025?
Not really. While they are heavily promoted, apartments come with high service charges, limited appreciation and often low occupancy. They work better for brokers than investors.

Why are HMOs stronger investments than apartments?
HMOs generate income from multiple tenants, meaning you earn from several streams instead of one. They also appreciate faster, cost less to maintain and are always in demand.

What about capital appreciation on apartments vs HMOs?
Apartments rarely increase in value at the same pace as HMOs. HMO properties benefit from land value growth, rental competition and consistent demand, giving investors compounded long-term gains.

Are apartments easy to resell?
No. The market for resale apartments is saturated, especially in Manchester, Liverpool and Leeds. Many sit unsold or empty for months, reducing liquidity for investors.

Why do brokers push apartments so hard?
Because they earn higher commissions on apartment sales. HMOs, on the other hand, are long-term wealth builders that favour investors, not brokers.

Do HMOs need more management?
Yes, but at Foot Forward Properties we handle everything. From development and compliance to tenanting and maintenance, our fully managed service makes HMO investment completely hands free.