According to Lendlord, which looked at sample data of 1,158 HMOs, the average HMO yield came to 9.6%, a drop of 0.8% annually.
The average annual rent came to £33,591, an increase of 18.9% or £5,343 year-on-year.
From a regional perspective, Greater London topped the table of average property prices with £684,724, followed by the South East and South West at £484,605 and £402,811 respectively.
The lowest average property values for HMOs were found in Wales at £233,354, the North East at £232,461 and Northern Ireland at £160,500.
The highest HMO yields were found in the North East at 15.1%, Wales at 11.6% and the North West at 11.4%.
The lowest HMO yields were located in Greater London at 8%, then the East Midlands at 9.1% and the South East at 9.4%.
Average rental income was highest in the South East at £45,450, with the lowest in Northern Ireland at £15,300.
The North West had the highest share of HMOs at 17.9%, an increase of 2.8% year-on-year.
This was followed by Greater London at 16.5% and the West Midlands at 11.2%.
On the other end of the spectrum are the North East, Scotland and Northern Ireland at 3.6%, 2.8% and 0.3% respectively.
Aviram Shahar, co-founder and CEO of Lendlord, said: “The importance of HMOs to property investors has never been clearer and our Q4 2025 figures highlight that yields have remained fairly constant year-on-year, with the average annual rent increasing by an impressive £5,000 in just one year.
“Our platform is designed to simplify property management and empower smarter investment choices to ensure our users can confidently navigate the complexities and ongoing challenges that they face as property investors.”
