Why Now Is the Best Time to Be a HMO Landlord

September 28, 2026

There has probably never been more noise around being a landlord than there is in 2026. The Renters’ Rights Act, EPC requirements, taxation changes, increased compliance and tougher enforcement have all been enough to convince a large number of landlords that they simply do not want the hassle anymore.

From where we are sitting, after more than 34 years of developing and managing HMO properties, we see the situation very differently.

For professional HMO landlords with the right properties, in the right locations, backed by proper management, the current market is creating an opportunity. Landlords are leaving, poor-quality rental stock is disappearing, yet people still need somewhere affordable and comfortable to live.

That combination is producing significant demand across the HMO properties we own ourselves and those we have developed and now manage for investors.

Landlords are leaving, but tenants have not disappeared

One of the biggest mistakes people make when discussing the private rental sector is assuming that fewer landlords somehow means fewer tenants.

It doesn’t.

People still need homes. Professionals still relocate for work. NHS employees, logistics workers, council employees, police officers, engineers, tradespeople and countless other working tenants still require good-quality rental accommodation in places such as Doncaster and wider South Yorkshire.

The difference is that the available supply is changing.

A considerable amount of older HMO stock was developed for a very different rental market. Properties that might have been acceptable ten or fifteen years ago can now look tired, poorly configured and completely behind modern tenant expectations.

Some have small bedrooms, shared bathrooms, no usable outside space, poor parking, dated kitchens and years of deferred maintenance. Others require considerable expenditure simply to bring them up to the standard expected by tenants today.

When landlords sell those properties, many will never return to the market as HMOs. They are purchased by homeowners or developers, converted back into family houses and removed from the HMO supply altogether.

Meanwhile, demand for genuinely good professional shared accommodation remains.

The Renters’ Rights Act has changed the type of landlord who will succeed

The Renters’ Rights Act should not be treated as something that has destroyed HMO investment. It has changed the standard expected of landlords.

From 1 May 2026, the new tenancy rules came into effect across England. Most assured shorthold tenancies became assured periodic tenancies, Section 21 was removed and landlords now operate within a considerably more regulated enforcement environment.

There are financial penalties of up to £7,000 for certain breaches of the new tenancy rules. More serious offences can result in penalties of up to £40,000 as an alternative to prosecution.

For somebody trying to manage several HMOs themselves around a full-time career, those responsibilities can quickly become an unwanted second job.

This is exactly why we believe professionally developed and fully managed HMO investments make more sense now than they did several years ago.

Our investors are not left trying to work out licensing, compliance, inspections, tenant management, maintenance, rent collection and legislative changes themselves. Our in-house operation handles the property from development onwards, including its ongoing management.

We have spent more than 34 years doing this.

Tenants are becoming much more selective

One of the most interesting changes we have witnessed within our own managed portfolio is the strength of tenant demand for properly maintained HMO rooms.

We have seen a significant number of applications from people wanting affordable, well-maintained accommodation where they know the property will actually be managed properly.

That last part should not be underestimated.

For far too long, parts of the HMO market have suffered from landlords who appear to view tenants as nothing more than monthly rent payments. Poor maintenance, slow responses, tired properties and little consideration for the people actually living inside them have damaged the reputation of the sector.

We take the opposite approach.

Our tenants are people. We treat them accordingly.

We have even seen tenants move away from expensive HMO accommodation into properties we manage because they were fed up with paying high rents while receiving a poor service from their previous landlord.

That is one of the reasons we do not believe the future of HMO investment is about squeezing every possible pound of rent out of a bedroom. There needs to be a sensible balance between investor returns, affordability and the quality of the accommodation being provided.

When that balance works, tenants stay happier and investors own a much stronger asset.

What does a modern professional HMO actually need?

We have developed more than 450 HMO properties over the years, and our current specification is based on what we know professional tenants actually want rather than what looks impressive in an investment brochure.

Our HMO developments are substantial back-to-brick refurbishments. We are not putting some new furniture into a tired rental property, painting the walls and pretending it has been redeveloped.

Our properties are designed around professional tenants, with full ensuite bedrooms, properly planned communal areas, high-quality kitchens, outside space and gardens, with off-road parking wherever the property allows it.

The refurbishment itself is built for long-term use.

That does not mean covering every property in expensive boutique finishes and then attempting to recover the cost by charging unrealistic rents. We want the interiors to look excellent, but they also need to be practical, durable and maintainable.

A professional tenant does not necessarily want marble worktops and a designer chair that makes the room £150 per month more expensive. They want a clean ensuite, good heating, reliable Wi-Fi, a comfortable bedroom, a properly maintained kitchen, somewhere sensible to park and a landlord who deals with problems when they occur.

Our approach allows us to provide high-quality homes while keeping rents at a level that remains attractive to the local professional market.

Poor HMOs are gradually being filtered out

The increasing cost and complexity of running rental property is going to make neglected HMO stock increasingly difficult to justify.

A landlord with an old property requiring significant maintenance, energy-efficiency work, licensing expenditure and major refurbishment may decide that selling is easier than spending tens of thousands of pounds modernising it.

In many cases, that property then leaves the HMO market completely.

For established operators with compliant, modern stock, that reduction in poorer-quality competition can be beneficial.

We are already seeing strong application levels across our own properties and those we manage for investors. Our strategy remains the same as it has been for years: develop the right type of HMO, in locations where genuine professional demand exists, price the rooms sensibly and manage the property properly.

It isn’t particularly glamorous. It works.

Being a HMO landlord does not mean you need to become a full-time property manager

This is where the traditional idea of being a landlord is changing.

An investor does not necessarily want their evenings filled with maintenance calls, licensing paperwork, inspections, tenancy administration and chasing contractors. Most of the investors we work with have careers, businesses and families of their own.

Their objective is to own the investment, not create another job for themselves.

Foot Forward Property Investments provides an end-to-end service covering acquisition, development, compliance, licensing, tenant finding, ongoing management, inspections, maintenance and the wider operation of the property.

We also only manage HMOs that we develop ourselves.

That gives our team accountability from the original purchase and refurbishment through to the people eventually living in the property. If something has been designed, specified or built by us, our management operation knows exactly what it is dealing with.

Investors therefore get the benefit of more than 34 years of HMO experience without having to personally acquire 34 years of HMO experience first.

Higher compliance can actually benefit responsible landlords

Regulation tends to frighten people when an industry changes.

For operators already investing in good housing, proper systems and professional management, higher standards can also remove some of the competition that should arguably never have been operating at that level in the first place.

The Renters’ Rights Act gives local authorities considerably stronger enforcement options. Landlords therefore need to understand exactly what they are doing, maintain proper records and follow the correct procedures.

We are comfortable with a market where landlords are expected to treat tenants properly.

In fact, we strongly support removing rogue and questionable landlords from the HMO sector. Shared housing serves an important purpose within the UK housing market, but it needs to be developed and operated responsibly.

Good landlords should not be competing with somebody running a neglected property, ignoring maintenance and treating tenants poorly simply because that landlord is prepared to cut every possible cost.

The opportunity isn’t buying any HMO you can find

None of this means investors should suddenly buy the cheapest six-bedroom property available on an investment portal.

Quite the opposite.

As weaker landlords leave the sector, there will inevitably be HMOs offered for sale that look cheap on paper. Investors need to ask why.

What condition is the property actually in? What expenditure is coming? Is the layout competitive? Does every room have an ensuite? Is there parking? Is there outside space? What is the real local professional tenant demand? How many competing rooms are available nearby? Are the projected rents genuinely being achieved?

A cheap HMO in an oversupplied area can remain a terrible investment regardless of what legislation does.

Our strategy is based around developing professional HMOs in South Yorkshire, particularly markets we understand from decades of operating within them. We do not chase an area simply because somebody on social media has discovered houses can be bought cheaply there.

We want sustainable demand.

This is where 34 years of experience becomes particularly valuable

A forgiving market can make inexperienced operators look experienced.

A more regulated market exposes the difference.

As compliance increases and tenants become more selective, investors need developers and managers who understand how an HMO performs after the refurbishment photographs have been taken.

We develop them. We let them. We manage them. We maintain them. We deal with the tenants. We monitor demand. We see which layouts work and which do not. We see what tenants are prepared to pay, what causes complaints and what makes somebody renew rather than move elsewhere.

We also invest in HMO properties ourselves.

That experience feeds directly back into how each new property is designed and developed.

Why we think now is a fantastic time to build an HMO portfolio

The HMO market is not disappearing. It is becoming more professional.

Poor-quality stock is being sold. Some landlords are deciding the regulation and administration are no longer for them. Tenant expectations have increased, while affordable professional accommodation remains in significant demand across the markets in which we operate.

For an investor attempting to run everything alone, that environment can look intimidating.

For an investor working with an established HMO developer and management company, it looks very different.

You can own professionally developed HMO properties while our team handles the development, licensing, compliance, tenant management, inspections, maintenance and day-to-day work required to operate them.

The landlords who treated HMO investment as buying a cheap house, filling every available room and forgetting about the people living there are going to find the modern market increasingly difficult.

Those who provide good homes, price them sensibly and run them properly have a very different opportunity.

After more than 34 years in this sector, we believe professionally managed HMOs still have an extremely important role to play in the UK housing market. Based on what we are seeing across the properties we own and manage, demand for the right accommodation is very much there.

If you are considering building an HMO portfolio and would rather have an experienced team handle the entire process from development through to ongoing management, view our current HMO properties for sale and learn more about how Foot Forward Property Investments develops fully managed HMO investments in South Yorkshire.