Why is the student HMO market performing so well, and what are HMO landlords planning for their portfolios? Here, we look at this sector’s positive outlook and performance.
If you're a landlord looking for strong returns and long-term stability, it's time to consider HMOs and student lets. A new report from student accommodation platform StuRents reveals that 77% of students now prefer HMOs over purpose-built student accommodation (PBSA)—a clear signal that this sector is thriving.
Why Are HMOs and Student Lets Outperforming?
Since 2016, the UK has welcomed an additional 160,000 international university students, a surge fuelling demand for shared housing. Unlike PBSA, which often comes with premium pricing, HMOs offer affordability and flexibility, which students value highly.
As a result, rents in the student HMO sector are growing at over 5% annually, outpacing most other buy to let property types. For landlords, this means higher yields and lower void periods.
But it’s not just about growth, it’s about stability. In a time when many landlords are grappling with uncertainty, HMOs and student lets offer consistent demand and reliable income streams.
What About the Renters’ Rights Bill?
Of course, no investment is without its challenges. The sector must now prepare for a significant regulatory change that will be introduced with the Renters’ Rights Bill.
The Bill is set to introduce periodic tenancies, which will remove fixed-term contracts and allow tenants to leave with shorter notice periods.
This could complicate the traditional student letting cycle, where properties are typically re-let in time with the academic year. If current tenants decide to stay longer, it may disrupt your ability to prepare for the next cohort.
However, this change also presents an opportunity: landlords who adapt quickly can mitigate the challenge. By prioritising good communication with your tenants and planning ahead, you may be able to ensure you can get new tenants into your property as the term starts.
Want to understand periodic tenancies better? Read more here.
What Do the Experts Say?
StuRents recently hosted a roundtable of student accommodation experts, and the sentiment was clear: the HMO market remains strong.
- 80% of attendees said they’re actively looking for new investment opportunities
- 48% reported steady demand from international students in 2025 so far
- Despite regulatory changes, PBSA remains significantly more expensive, meaning HMOs are still the first choice for students.
The Bottom Line for Landlords
The student HMO market is evolving, but it’s still one of UK property's most resilient and rewarding sectors. With rising student numbers, strong rental growth, and a clear affordability advantage over PBSA, it’s time to look at whether this property type could boost your portfolio.
Speak to one of our experts
Our experts can go through your mortgage finance options and find you the best HMO and student let rate on the market.
Call us on 0345 345 6788 or submit an enquiry here.
