The number of young professionals who are choosing to live in HMO accommodation has increased.
The research by The Mistoria Group has revealed that there has been a 23 per cent increase in the number of young professionals that are preferring to live in HMO accommodation at a fixed rental which includes all bills, rather than renting their own house or flat.The rise has been happening in the North West according to the report as hutching up has been more of a phenomenon in London.
However, Mish Liyanage, Managing Director of The Mistoria Group says that in cities like Manchester, expensive accommodation is causing graduates to change their options on living arrangements.
“We are finding that the demographic of our tenants is changing, as many graduates opt to stay in the properties after graduation. The cost of setting up on their own is just too expensive. Houses that have been ear marked as student lets are now becoming tenanted by young professionals,” said Mish.
“For many professionals, not having to set up electric, gas, broadband and TV accounts and find £000’s in deposit and first month’s rent, is a massive thumbs up for their wallets. Having the luxury of being able to budget, without having fluctuating monthly bills, has all contributed to the rise of hutching.”
Mish believes that the astute landlord will now be able to adapt to the needs of young professionals as renting a property which doesn’t include bills is now out of the question for most of them.
“Furnished accommodation in or close to city centres tends to be rare and expensive. The astute landlord who has noted the hutching up trend and has upgraded his/her property to meet the expectation level of this new tenant, will reap the benefits,” added Mish.
“Young professionals will rent for a 12 month tenancy, as opposed to students who traditionally will only rent for 10 or 11 months, increasing their annual yield on the property by 2-3 per cent.”
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