South Yorkshire vs North East and North West for HMO Investment

April 14, 2026

For years, investors have looked to the North West and North East for HMO investment. Property marketers, deal sourcers, social media commentators, and webinar hosts have pushed those regions heavily, so many buyers still begin their search there.

Yet popularity does not equal performance.

A market can dominate the conversation and still fall short as an investment destination. That is now the case across large parts of the North West and North East. These regions are not poor markets by default, but they no longer offer the standout HMO opportunities many people claim. In many cases, they have become overmarketed, overcrowded, and overpackaged.

South Yorkshire offers something many investors now struggle to find elsewhere. It gives buyers a stronger mix of rental growth, affordability, employment, transport links, and more manageable HMO competition. For serious investors, that balance matters far more than noise.

The North West and North East Have Become Overmarketed

Hype now drives far too much of the attention on the North West and North East.

For years, deal sourcers have pushed these markets relentlessly because they need to move stock. As a result, many investors are no longer buying exceptional opportunities. Instead, they are buying heavily marketed stock in heavily promoted areas.

At a certain point, a region stops being under the radar and turns into a conveyor belt for packaged property deals. In our view, much of the North West and North East now fit that description. Sourcers talk about them constantly, market them aggressively, and present them as if popularity alone makes them the best places to invest. It does not.

The sales message often sounds stronger than the real investment case. Sourcers highlight headline yields, low entry prices, and vague regeneration claims, but they often leave out the bigger issues. Investors hear far less about rising competition, planning pressure, tenant saturation, or what happens when too many near identical HMOs compete for the same demand.

Caution matters here. When sourcing agents dominate a region, opportunity quality often drops as promotion volume rises. The markets with the loudest marketing are not always the strongest long term bets. More often, they are simply the easiest areas to package and sell.

Why the North West and North East No Longer Look Like the Best HMO Bet

The North West now holds the highest share of HMOs in the UK at 17.9%, according to Lendlord’s Q4 2025 data. That figure does not make the region bad in itself, but it does show how crowded the market has become. When investor attention floods into the same places, stock begins to look alike, tenant competition intensifies, and landlords must fight harder on price, incentives, and specification just to stay competitive.

The North East still attracts investors because of its headline yields. On paper, that can look appealing. In reality, investors need to ask tougher questions. Does the market have enough depth? Does it have broad tenant demand? Does the local economy support long term performance? A strong yield means very little when the wider area cannot support stable demand, future growth, and asset quality.

Planning pressure adds another concern. Councils across both regions are responding to HMO concentration with tighter controls and closer scrutiny. That tells its own story. Many of the easier wins have already gone. These markets are no longer early stage opportunities. They are busier, more competitive, and more restricted than many investors realise.

Too many buyers now pile into the same areas because someone told them to, not because those locations still offer the strongest overall HMO case.

South Yorkshire Offers What HMO Investors Actually Need

A strong HMO investment area needs more than a catchy headline. It needs real demand, strong transport links, a broad employment base, sensible entry prices, and room to grow.

South Yorkshire has that combination.

The area sits inside one of the strongest rental growth stories in England, yet it does not face the same level of HMO crowding seen in many headline northern hotspots. That distinction matters. Investors are not just buying yield for today. They are buying into a market where competition feels more manageable, demand runs broader, and the long term case still has space to develop.

That is where South Yorkshire pulls ahead. It does not rely on noise. It relies on fundamentals.

South Yorkshire Has a Real Working Economy, Not a One Track Story

The best HMO markets do not depend on one narrow tenant type, and that is one of South Yorkshire’s biggest strengths.

We continue to like the region because it is not a one trick student market. Logistics, manufacturing, warehousing, transport, healthcare, public sector work, and service based employment all support the area. That range creates a broader tenant base and a much more resilient investment case.

Doncaster shows this clearly. Its central location and strong transport links keep strengthening its position as a major employment hub. With direct access to the M18, the A1 corridor, wider links into the M1 network, and strong rail connectivity, Doncaster gives large employers and regional workers a highly practical base.

That advantage has helped attract major logistics and distribution activity, with names such as Amazon, Lidl, CEVA Logistics, and Fellowes all feeding into the wider Doncaster employment story. For HMO investors, that matters enormously. Tenant demand comes from a live working economy, not from seasonal student cycles or one narrow sector.

That is the kind of foundation serious investors should want.

Why South Yorkshire Makes More Sense Than the Oversold Northern Hotspots

South Yorkshire offers something increasingly rare, a strong regional story without the same level of overexposure.

Across many North West and North East locations, sourcing agents keep selling investors the same idea. The same stock types appear again and again. The same postcodes come up repeatedly. The same so called hotspots get recycled until the opportunity loses its edge.

South Yorkshire still feels different.

It offers affordability without sacrificing economic relevance. It offers rental demand without creating a market full of near identical HMO stock. It offers growth without relying on one narrow tenant profile. Strong infrastructure and a central location also widen the pool of professional tenants.

That is why we believe South Yorkshire now stands out far more clearly than the North West or North East.

The Capital Growth Story Supports the Income Story

Serious investors should never focus on yield alone.

A HMO can look attractive on paper because the rent appears strong against the purchase price, but that only tells part of the story. Investors also need to assess location quality, demand resilience, competitive pressure, and the scope for future capital growth.

South Yorkshire performs well across that wider view.

The region still benefits from the broader shift toward better value northern locations outside overheated southern markets. That balance between entry price, rental performance, and future growth gives investors something many now struggle to find in the more overhyped parts of the North West and North East.

South Yorkshire is not just an income play. It is one of the stronger all round HMO investment stories available today.

Why Investors Need to Look Past the Noise

The HMO market has matured, so investors now need to choose far more carefully.

Buying wherever sourcing agents shout the loudest no longer works. Following the same areas that have been promoted for years no longer works either. The best opportunities now come from understanding where demand is real, where competition stays sensible, and where the wider economy still supports growth.

That is why South Yorkshire deserves more attention.

At Foot Forward Properties, we have spent more than 34 years developing and managing HMO properties. We have seen markets rise, cool, become overcrowded, and lose their edge. We have also seen the difference between areas that people sell because they are easy to package and areas that genuinely make sense for long term investors.

In our view, the North West and North East are becoming markets that people sell harder than they understand. South Yorkshire is where investors should be looking if they want a stronger balance of affordability, tenant demand, employment strength, transport connectivity, and long term potential.

To explore opportunities in a market we believe still offers that balance, view our fully managed HMO investments for sale.