Where to Buy an HMO in the North of England?
June 15, 2026
Written by Thomas Abram – Group Marketing Executive
Where should you buy an HMO in the North of England?
For investors asking where to buy an HMO in the North of England, the answer is rarely as simple as choosing the biggest city, the cheapest house or the location that appears most often in a property investment advert.
In our experience, the better question is this:
Where do the purchase price, refurbishment cost, tenant demand, management reality, compliance position and long-term growth potential still work together?
For many investors, especially southern investors who are now looking north, that question often leads to one answer.
South Yorkshire.
More specifically, we focus on Doncaster and the wider DN postcode area, where affordability, employment-led tenant demand, transport connectivity, regeneration and professional room rental demand can still align in a way that has become increasingly difficult to find in many better-known northern HMO markets.
That does not mean every South Yorkshire property works. It does not mean every street is suitable. It does not mean investors should buy simply because a property looks affordable. HMO investment is a specialist strategy, and the location decision needs to come before the spreadsheet.
For over 34 years, we have focused solely on Northern HMO development and management. That experience has taught us that the North of England can offer strong HMO opportunities, but it has also taught us that the wrong northern location can become an expensive mistake.
Why more investors are looking north for HMO investment
Southern investors, as well as more and more experienced HMO investors, are realising that the North of England can be a strong place for HMO investment. In many southern areas, property prices have risen to a level where it can be difficult to make HMO numbers work properly once finance, refurbishment, compliance, utilities, management, maintenance and voids are all allowed for.
In the North, investors can often find a better relationship between purchase price and potential rental income. In the right locations, that can create far superior returns compared with many southern opportunities.
But this is where many investors reach the same point.
They look at the North, see dozens of cities and towns, then ask:
“Now what?!”
That is a very good question.
The North is not one market. Manchester is not Doncaster. Liverpool is not Barnsley. Newcastle is not Rotherham. Hull is not Sheffield. Blackpool is not South Yorkshire.
Each location has its own tenant base, property stock, planning rules, licensing requirements, competition levels, employment drivers, refurbishment costs, resale demand and management challenges. Buying in the North only works when investors understand which local fundamentals support a high-performing HMO.
The trophy city trap: Manchester and Liverpool
One of the most common mistakes we see is investors falling into the trophy city trap.
Manchester and Liverpool are the obvious examples. They are large, famous, recognisable cities with strong brands. From the outside, that can make them feel safer. Investors know the names. Lenders recognise the cities. Deal packagers and property sourcers often find them easier to sell because the location already sounds impressive.
The issue is that trophy city status can hide HMO saturation.
Over the years, Manchester and Liverpool have attracted a sea of developers, sourcers and deal packagers. Many have used the profile of those cities to suggest that tenant demand is almost endless. In reality, a good HMO market is not just about population size. It is about the balance between the number of good-quality rooms available and the number of suitable tenants who want those rooms at the rent levels needed to make the project viable.
In oversupplied pockets, landlords can find themselves competing on price, incentives, specification, bills packages, deposits and room presentation. That can reduce net income, increase void risk and make projected returns look much better on paper than they feel in real life.
This does not mean every HMO in Manchester or Liverpool is a poor investment. Good operators can still perform well there. The point is that the margin for error has narrowed. Investors usually need more capital, stronger micro-location knowledge, a better refurbishment standard and sharper management to stand out.
For many investors, especially those buying from outside the region, that is not always the best place to begin.
The cheap-property trap: Newcastle, Hull, Blackpool, Stockton and Middlesbrough
The second mistake is almost the opposite.
Instead of being pulled into trophy cities, investors are pulled toward cheap stock.
This is where locations such as Newcastle, Hull, Blackpool, Stockton and Middlesbrough often appear in investor conversations. The logic can look attractive at first. The houses are cheaper, the gross yields look higher, and the entry cost appears lower.
But cheap property is not the same as good property.
In some of these areas, HMO investor activity has been heavily influenced by property gurus and marketers identifying low purchase prices, then using those low prices to make the headline numbers look better. The spreadsheet can appear strong because the purchase price is low, but the spreadsheet may not fully account for tenant depth, wage levels, local competition, resale liquidity, compliance spend, management intensity, area reputation, tenant churn or the cost of keeping the property full.
When too many investors are pushed into the same “cheap” areas, saturation can still happen. It may not look the same as Manchester or Liverpool, but the result can be similar. Too many rooms end up chasing too few suitable tenants at the rents required.
A low purchase price can help an investor. It can also disguise risk.
The overlooked HMO opportunity: South Yorkshire
In our experience, South Yorkshire remains one of the most overlooked HMO investment regions in the North of England.
We often describe the right parts of South Yorkshire as a Nirvana zone for HMO investment. Not because it is risk-free. No investment is risk-free. We say this because the fundamentals can still align in a way that many investors miss.
The appeal is not based on hype. It comes from the combination of affordability, employment, regeneration, transport connectivity, professional tenant demand and the ability to create high-quality shared accommodation without relying purely on students.
That final point matters.
A strong HMO location should not depend on one narrow tenant type. If the whole investment case relies on students, one university, one seasonal cycle or one specific tenant group, the investor carries more exposure. We prefer locations where demand can come from a wider professional base, including logistics, healthcare, engineering, aviation, public sector work, construction, warehousing, rail, retail, local services and regional employers.
That is why South Yorkshire deserves serious attention.
Why Doncaster and the DN postcode stand out
Doncaster is one of the most interesting HMO locations in the North because it has a rare combination of central location, affordable housing stock and employment-led demand.
The DN postcode is geographically wide. It does not only describe one small town centre market. It stretches across a broad catchment that connects Doncaster with surrounding employment areas, logistics corridors and neighbouring settlements. For HMO investors, that matters because tenant demand is not created by one street alone. It is shaped by where people work, how they travel, what they can afford and whether high-quality rooms are available close enough to employment and transport links.
Doncaster also benefits from an unrepeatable central location. It sits in a strategic part of the country, with strong road and rail connectivity and access to major employment corridors. For professional tenants, location is not just about nightlife or university campuses. It is about practical living.
Can they get to work easily?
Can they reach the motorway?
Can they access the station?
Can they rent a modern, clean, well-managed room without paying big-city prices?
That is the type of tenant demand we like.
Why our own HMO portfolio matters
This is not just theory for us.
We are HMO investors ourselves. We have our own portfolio of HMO properties in exactly the same areas as our investors, built to exactly the same specifications. We really do put our money where our mouth is when it comes to investing in and producing HMO property investments in South Yorkshire.
That matters because HMO investment should be guided by real operational insight, not just sales material.
When we invest in the same areas, with the same specifications and the same management standards, we see the market from the inside. We see which rooms let quickly. We see which tenant profiles are most reliable. We see which layouts perform well. We see where maintenance pressures arise. We see where rents are achievable, where they are not, and where investors need to be careful.
This first-hand experience helps us manage investor risk more responsibly.
It means our advice is not based only on theory, spreadsheets or national headlines. It is shaped by our own capital, our own portfolio, our own refurbishments, our own tenant feedback and our own day-to-day management experience in the same South Yorkshire locations we recommend.
For us, that is an important part of responsible HMO investing. If we would not be comfortable owning it ourselves, we would not be comfortable producing it for an investor.
Capital appreciation, not just yield
Many HMO investors focus too heavily on yield.
Yield matters, but it should never be the only measure. A strong HMO investment should be assessed through several lenses, including net cash flow, tenant demand, compliance, planning risk, refurbishment costs, refinance potential, management complexity, resale demand and capital appreciation.
Savills has continued to highlight the regional difference in UK housing performance, with more affordable northern regions expected to show stronger relative growth than some higher-priced southern markets over the medium term. That wider context supports the argument that investors should not only look at headline rent. They should also consider where affordability and future growth may still have room to move.
South Yorkshire has historically been overlooked by many HMO investors who have either chased trophy cities such as Manchester and Liverpool or chased very cheap stock in more heavily marketed northern towns. That matters because overlooked markets can sometimes retain better pricing, less competition and more room for professionalisation.
This is not a promise of capital growth. Property values can fall as well as rise. But when an area combines affordability, employment, infrastructure and regeneration, it deserves closer attention than a location chosen simply because it is famous or cheap.
Employment-led demand: iPort, Unity Yorkshire and Doncaster Airport
One of the reasons we like South Yorkshire is the strength of its employment story.
Doncaster is home to iPort, one of the UK’s major logistics hubs, with logistics space and rail freight infrastructure. This type of employment driver is important for HMO investment because it can support demand from working tenants who need practical, well-managed accommodation within reach of their workplace.
Unity Yorkshire is another major regeneration project in Doncaster. It is a large mixed-use development bringing together homes, commercial space, infrastructure and employment-led regeneration. Large regeneration projects do not automatically make every nearby HMO a good investment, but they can strengthen the long-term case for an area when they bring employment, infrastructure and wider confidence.
Doncaster Sheffield Airport also forms part of the regional story. The reopening programme has continued to move forward, with the airport positioned as a major opportunity for jobs, connectivity and economic growth across Doncaster and South Yorkshire. For HMO investors, this matters because aviation, logistics, hospitality, maintenance, security, customer service and associated supply chains can all contribute to a broader professional tenant base over time.
The key point is simple.
We prefer HMO markets where tenant demand is linked to real-world employment rather than investor marketing.
Why professional tenant demand is important
Student HMOs can work well in the right areas, but we do not believe investors should assume that student demand is the only route to a successful HMO.
Student markets can be seasonal. They can be influenced by university intake, purpose-built student accommodation, international student numbers, academic calendars, guarantor requirements and changing student expectations. They can also attract heavy investor competition because the model is easy to understand from the outside.
Professional HMO tenants are different. They usually care about convenience, cleanliness, safety, Wi-Fi, bills, transport, parking, room quality, communal standards and good management. They may be relocating for work, starting a new job, separating from a partner, working on a contract, saving for a deposit, or choosing shared accommodation because self-contained flats have become too expensive.
South Yorkshire gives investors access to this wider tenant base. That is one of the reasons we believe it remains undervalued as an HMO investment region.
Why affordability still matters
A good HMO refurbishment needs enough margin.
If the purchase price is too high, the investor may be tempted to compromise on the refurbishment. That is usually a mistake. Modern HMO tenants compare rooms online, and they notice bathrooms, kitchens, furniture, lighting, storage, broadband, cleanliness and management standards.
In many saturated trophy city locations, the cost of buying the right property can make the full refurbishment and compliance budget harder to justify. In some cheap-property locations, the opposite problem appears. The property may be inexpensive, but the end rental demand may not be strong enough to support the intended specification, refinance value or long-term income expectation.
South Yorkshire can still offer a more workable middle ground. Property prices remain relatively affordable in many parts of the market, and refurbishment numbers can still make sense when the right property, street and layout are selected.
This is where experience matters.
A property that looks like a bargain can become a poor HMO if the room sizes, fire strategy, planning position, parking, neighbour profile, management access or tenant market are wrong. A slightly more expensive property in the right micro-location can often be the better investment.
What makes a strong South Yorkshire HMO location?
When we assess whether an area works for HMO investment, we do not start with the gross yield. We start with demand and operational reality.
A strong HMO location usually needs access to employment, transport links, local amenities, tenant affordability, suitable property stock, manageable competition and a council environment that can be navigated properly. The property also needs to be capable of becoming a compliant, comfortable and durable HMO without overspending beyond the local rental ceiling.
In South Yorkshire, we look closely at:
- Proximity to employment areas
- Access to Doncaster, Sheffield, Rotherham, Barnsley and wider transport routes
- Local room demand from working tenants
- Quality of competing HMO stock
- Article 4 and planning considerations where relevant
- Licensing and room size requirements
- Refurbishment feasibility
- End valuation and refinance evidence
- Long-term management practicality
- Street-by-street tenant suitability
- Whether we would be comfortable owning the property ourselves
That last point is important.
Because we own HMOs in the same types of locations and to the same specifications, we do not look at properties only as a seller. We look at them as operators, managers and investors.
That gives us a clearer view of risk.
HMO management is not optional
HMO investment is not passive in the way some investors are told.
A good HMO needs professional management. Tenants need proper onboarding, referencing, maintenance support, cleaning standards, compliance checks, communication and quick issue resolution. Communal living works best when standards are set and maintained from the beginning.
Poor management can damage even a good property. It can lead to voids, arrears, disputes, anti-social behaviour, higher maintenance costs and reputational issues. Strong management protects the asset, the tenants and the investor.
This is one reason we have focused on both Northern HMO development and management for over 34 years. Development and management should not be treated as separate worlds. The way a property is designed affects how it performs. The way it is managed affects whether the projected returns survive contact with real life.
Compliance must come before yield
HMO investment sits within a regulated housing environment. Investors should never buy based on projected rent alone.
Before buying, investors should understand HMO licensing, local authority standards, fire safety requirements, minimum room sizes, planning rules, waste provision, amenity standards, management regulations and any local restrictions.
This is not a box-ticking exercise. It protects tenants and it protects investors.
A non-compliant HMO can face enforcement action, delays, unexpected costs, rent repayment risk, reputational damage and reduced resale value. In a responsible investment context, the correct approach is straightforward: safety, legality and suitability must come before the promise of yield.
Where should you buy an HMO in the North?
For most investors, the strongest answer is not the biggest city and not the cheapest house.
The stronger answer is the location where the fundamentals are balanced.
In our view, South Yorkshire, especially Doncaster and the wider DN postcode, offers one of the most compelling HMO investment cases in the North of England. It has the affordability that many southern investors are searching for, but it also has employment, connectivity, regeneration and a diverse professional tenant base.
Manchester and Liverpool may still suit some experienced operators, but investors need to be honest about competition and saturation. Newcastle, Hull, Blackpool, Stockton and Middlesbrough may appear attractive because of lower purchase prices, but cheap stock should never be mistaken for strong fundamentals.
South Yorkshire remains relatively unnoticed by comparison, and that is exactly why we believe it deserves attention.
Our view after 34 years in Northern HMOs
After more than 34 years focused solely on Northern HMO development and management, we have learned that the best opportunities are rarely found by following the crowd.
They are found by understanding tenant demand before buying the property. They are found by respecting compliance before chasing yield. They are found by choosing areas with employment, infrastructure and affordability rather than relying on a city name or a cheap purchase price.
They are also found by learning from real ownership.
We are HMO investors ourselves. We own HMO properties in the same areas as our investors, built to the same specifications, and managed with the same practical standards. That gives us real insight into the tenant market, refurbishment decisions, ongoing management, achievable rents, local competition and investor risk.
The North of England can be a strong place for HMO investment. For many investors, it can offer a better balance of income potential and entry cost than the South. But the North is not one single opportunity. It is a collection of very different markets, and the difference between a strong HMO and a difficult one often comes down to local expertise.
If you are asking “Where do I buy an HMO in the North?”, our answer is simple.
Start with South Yorkshire.
Then get specific.
Looking for HMO opportunities in South Yorkshire?
Foot Forward Property Investments specialises in Northern HMO development and management, with over 34 years of focused experience in the region.
We invest in the same areas, to the same specifications, and with the same standards that we produce for our investors.
View current opportunities here: HMO properties for sale
FAQs
Is the North of England good for HMO investment?
The North of England can be good for HMO investment when the location has strong tenant demand, sensible purchase prices, compliant property layouts and professional management. Investors should not treat the North as one market. Manchester, Liverpool, Doncaster, Newcastle, Hull and Middlesbrough all behave differently.
Why do southern investors buy HMOs in the North?
Many southern investors look north because property prices can be lower and rental yields can be stronger than in many southern markets. The key is to focus on net returns, tenant demand, compliance and long-term management rather than headline yield alone.
Are Manchester and Liverpool good for HMOs?
Manchester and Liverpool can still work for experienced operators, but many areas have become highly competitive. Trophy city status can attract developers, sourcers and deal packagers, which may increase the supply of HMO rooms and reduce the margin for error.
Are cheap HMO areas always better?
No. Cheap property can make a spreadsheet look attractive, but the real test is whether the area has enough suitable tenants, strong rent levels, manageable voids, resale demand and a realistic refurbishment path. Cheap stock without strong fundamentals can create poor outcomes.
Why consider South Yorkshire for HMOs?
South Yorkshire offers a strong mix of affordability, employment-led demand, regeneration, transport links and professional tenant demand. Doncaster and the wider DN postcode are particularly interesting because they combine central location, major employment drivers and property prices that can still allow refurbishment numbers to work.
Why does it matter that Foot Forward owns HMOs in the same areas?
It matters because first-hand ownership gives practical insight. We are HMO investors ourselves, with our own portfolio in the same areas and to the same specifications as our investors. That helps us understand tenant demand, refurbishment standards, management issues and investor risk from direct experience rather than theory alone.
Do HMOs need a licence?
Many HMOs require licensing, especially larger HMOs. Investors should always check the relevant local authority requirements before purchasing or converting a property. Licensing, planning, fire safety, room sizes and management standards should be reviewed before any investment decision is made.
Is HMO investment risk-free?
No. HMO investment carries risk, including voids, finance costs, refurbishment overruns, compliance issues, tenant demand changes, local competition and property value movements. Investors should take independent financial, tax, legal and planning advice before committing to any purchase.