Have Energy Bills Killed HMO Property?

In this Property Education video, Simon Zutshi, author of Property Magic, founder of the property investors network (pin), a successful property investor since 1995, covers the topic of Have Energy Bills Killed HMO’s? In other words, should we assume HMO’s are Dead with the New Energy Price Hikes 2022.

With the current UK Energy Crisis, Simon explains the impact on HMO Property Investing and your HMO Energy Bills altogether. Find out how the type of HMO Tenants you have can be beneficial with the current Energy Costs in the UK.

As part of his Interest Rate Update, Simon stresses how we are currently experiencing an Inflation Rate of over 10%. So What Does Inflation Mean for Property Investors? He advises property investors to increase their rent in order to cover the extra Energy Costs with their Houses of Multiple Occupation.

Simon recommends considering his 6% Interest Rate Calculation with all of your HMO Property Investments along with a Fixed Rate Mortgage to remove uncertainty around increasing interest rates.

It is also important to be aware of Lender Stress Tests as part of your Steps for Success in Property, yet it is easier to get a mortgage with HMO’s in the UK due to the high Cash Flow you can achieve from Houses of Multiple Occupation. 

If you are interested in one of the Best Property Strategies to Focus on in a Recession, Simon underlines how Luxury HMO’s / High End HMO’s , other wise known as Co-Living, is a great strategy to follow, especially when the demand Houses of Multiple Occupation is increasing right now.

Simon highlights the risks of a Property Market Crash 2022, due to many more retiring landlords, selling their investment properties.  Whilst there is a risk that your Property Investment could be worth less in the next 6-12 months, it does not matter if you are following his Golden Rules for Buying Properties - particularly Golden Rule of Property Investing No. 4, which is Buying for the Long Term.