22^nd Apr 2019

Landlords are being advised to invest in HMO (Houses in Multiple Occupation) as there is a daily drastic increase of one person households looking to rent shared accommodation to reduce their living costs.

The Office for National Statistics most recent survey has found that one person households have risen to 7.7 million by 16% from 1997 to 2017; it is forecasted there will be at least 10.7 million by 2039.

There are two major factors that has caused the distinct rise, one is there is an increase in the older age group due to greater numbers of children born in he Swinging Sixties and the number of divorces that has rocketed in the last thirty plus years.

One person households living costs have skyrocketed with them spending as much as 92% of their income just to live, with little chance of being able to save anything of real note. The usual suspects of bills, rent and other housing costs accounting for the vast majority of income.

People living alone are more likely to rent 'homes' rather than being in a position to own a residence and there is research that says this group has the lowest measure of wellbeing out of all household types.

Because of rising costs many one person households are opting for shared accommodation to ease financial costs to enjoy a better lifestyle.

Savvy buy to let investors whose HMO properties offer a good standard of accommodation, will enjoy higher than average yields because of the rising trend in one person households.

Co-founder of a flat sharing company, Tom Gatzen, commented: ‘The current cost of living is making it tough for many to get by, but shouldering this financial burden alone makes it all the more difficult.

"While we are currently seeing an upward trend in single occupant living as a result of a growing population and social factors such as an increase in divorce rates, we are also seeing a similar increase across other living habits such as co-living.

"While living alone is more prevalent across older age groups, we’re seeing a growing preference amongst younger generations to live in share households. This is not only helping them to address the financial issues head on but can also help with other disadvantages associated with living alone such as a lower level of wellbeing.

"If properly considered and developed, this lifestyle trend could go some way in addressing the predicted uplift in those living alone over the next two decades and the negative impact that this could have on this segment of the population."


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