Considering the ongoing cost of living crisis and interest rate forecasts, where in the UK are HMOs (rent-by-the-room) still a viable and profitable investment strategy for 2026, specifically looking at areas with strong employment growth and relatively stable local economies?
Quick Answer
HMOs can be viable in UK cities with robust employment growth and stable economies, such as regional hubs, university towns, and areas benefiting from large infrastructure projects, provided cash flow is prudently managed against increased BTL mortgage rates.
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Find profitable UK HMO investment areas for 2026. Learn where strong employment growth and stable economies support viable HMO strategies despite 5.0-6.5% mortgage rates.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
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