According to a lender just over a fifth of landlords - 21% - will be looking at buying potential HMO properties in the next twelve months.

The lender's survey also claims that 40% of landlords will be selling their terraced properties in the next year and just 8% will be selling HMO properties.

The lender's figures have found that the biggest average rental yield during April to June was achieved by HMOs with 6.3% whilst the market average was 5.5%.

The company points out that rental yields are the lowest over the last nine years, as average yields across the different property types have fallen by 0.3% in Q2.

Landlords who have between 11-19 properties had the highest average yields at 5.9%, North West landlords had properties in the one of the best regions which average 5.9%.

Managing director of the lender, Alan Cleary, said: “In a time of market uncertainty, HMOs are an attractive option for professional landlords looking to maximise yields.

“As HMOs attract multiple tenancies, gross rental income tends to outstrip single lets meaning the rental income is more secure if one tenant leaves a void.

“The expansion of the HMO sector underlines how experienced landlords are rebalancing their portfolios."