Beyond the numbers: Real valuations and the future of HMOs
Reflections from the HMO Awards & Summit 2025
There’s a quiet revolution happening in the rental market, and it’s worth £78 billion.
That’s the current combined value of HMO assets across England and Wales, generating over £6.3 billion in annual rental income. With 87,000 HMOs currently for sale, and many more being created from outdated housing stock, there’s real momentum in the sector, presenting opportunities for both seasoned investors and those just stepping into shared living for the first time.
And the HMO model is not just attractive to investors. More and more renters are choosing shared living not just for affordability, but for the sense of connection, community, and lifestyle it offers. Co-living is no longer a second-best option, for many, it’s how they want to live.
At this year’s HMO Awards and Summit, our Founder & CEO Alex Babouris joined a panel titled “Beyond the numbers: real valuations and the future of HMOs” tackling some of the trickiest conversations in the sector. In addition to Alex, joining the discussion were Edward Clark (Uplift Finance), Richard Nicholls (HMOx), and Ash Zuberi (panel host), who brought insights from the front lines of investment, lending, and operations.
Left to right: Ash Zuberi, Edward Clark, Alex Babouris and Richard Nicholls
Is valuing an HMO science or art?
The panel kicked off with a familiar frustration: valuing HMOs can feel more like guesswork than science. Even with data on strong rental yields and minimal voids valuations can often come in under what landlords expect, especially when the valuer is using traditional comparables in areas full of standard residential stock.
There’s a growing sense that the valuation process hasn’t quite caught up with how much the sector has evolved. HMOs today are often design-led, well-managed, and cash-generative, but that doesn’t always show up on the valuer’s assessment.
Long-term income over quick wins
The panel was quick to point out that HMOs aren’t usually bought to flip. Most landlords are building portfolios that deliver consistent income over the long term. As Richard Nicholls put it, “Prepare now to sell in 10 years.”
Because of that, short-term volatility in valuation isn't the main concern. What matters more is the day-to-day cashflow, resilience to market cycles, and long-term returns. In fact, many modern HMOs no longer resemble standard housing at all, so applying a traditional valuation model often misses the mark.
HMO Awards and Summit 2025 at Stowe House, UK
Presentation really does matter
Alex Babouris shared how quality can move the needle on valuation. High-end finishes, thoughtful design, and smart layouts don’t just attract better tenants, they often attract better valuations too as a result of improved yields.
His advice? Don’t leave the valuer to figure it out on their own. Prepare a valuation pack with everything from occupancy data to resident testimonials and case studies of comparable projects. The more context you provide, the more likely you are to get a valuation that reflects the real value of your assets.
Lenders are watching the numbers too
Edward Clark from Uplift Finance brought a lender’s perspective to the table. While a strong valuation can unlock capital or make refinancing easier, he cautioned against using that number to stretch borrowing too far.
Lenders want to see long-term viability, not just a rosy valuation. Over-leveraging based on best-case figures can be risky, especially if lending criteria tighten or market conditions shift. His message was clear: grow sustainably, and build your business on fundamentals, not just forecasts.
Alex Babouris, panelist at the HMO Awards and Summit 2025
Looking ahead
As the panel wrapped up, there was agreement that the sector is heading in the right direction, but there’s still work to do. Valuers, lenders, and even some landlords need to keep pace with how quickly the HMO landscape is changing.
Shared living is no longer a niche strategy. It’s a growing part of the housing solution, and one that offers real social and financial value. With the right approach to quality, presentation, and long-term thinking, the future of HMOs looks strong.
References: COHO “State of Shared Living 2025” and landlord.io
The panel discusses “Beyond the numbers: Real valuations and the future of HMOs”