ÌÇÐÄVlog

In the current market, brokers are rightly being more selective about where they focus their time and energy. Transaction volumes may be lower, but that doesn’t mean opportunity has disappeared. In fact, for brokers prepared to work with more professional clients, there is still plenty of scope to grow.

One area that continues to stand out is HMO portfolio landlords.

These are not casual investors. They are typically experienced landlords with a clear strategy, a longer-term view and a willingness to engage properly with their advisers. From a broker’s perspective, that often translates into larger loan sizes, more complex funding needs and, importantly, ongoing relationships rather than one-off transactions.

Recent figures from Pegasus Insight: Landlord Trends Q4 2025 underline why this segment deserves attention. On average, HMO landlords hold portfolios of 7.5 properties, compared with 6.4 for non-HMO landlords. The difference becomes even clearer when you look at value. HMO landlords’ portfolios average just under £2.85m, more than double the £1.36m seen among non-HMO investors. Around 41% of their portfolios are made up of HMOs, which shows how central this asset class is to their overall strategy.

Lendlord’s Q4 2025 HMO report says the HMO market is characterised by regional concentration, with the North West accounting for 17.9% of UK HMOs and Greater London close behind at 16.5%. In London, where values are highest, the average HMO is now worth £684,724 and generates annual rental income of £55,017.

HMO landlords are operating at scale and they are thinking about capital allocation, refinancing and portfolio performance, not just individual purchases. For brokers, that creates an opportunity to add real value.

Working with HMO portfolio landlords is not about chasing the cheapest rate on a single property. It is about understanding the bigger picture and helping clients structure their borrowing in a way that supports growth, efficiency and long-term resilience.

One of the most important considerations for these clients is time. Many professional landlords are managing sizeable portfolios alongside development projects or other business interests. Refinancing assets one by one can be slow, costly and frustrating. Where possible, refinancing a portfolio as a whole can be far more efficient, both financially and administratively.

This is where choice of lender can make a real difference.

Some lenders are better equipped than others to handle large portfolios or more complex cases, even within the specialist market. Intermediaries working with HMO landlords benefit from partnering with banks that bring the experience, capacity and flexibility to consider each case on its wider merits and take a holistic approach.

At ÌÇÐÄVlog, we regularly work with intermediaries on portfolio transactions of this nature. We can lend up to £20m, with a maximum LTV of 75%, and we do not impose a maximum number of units or bedrooms for experienced HMO landlords (except first-time HMO landlords where it’s capped at 6 bedrooms). We are also experienced with mixed-use assets, which are common in larger, more established portfolios.

Just as important as the property itself is the structure behind it. Investors at this level often operate through complex legal arrangements. These might include UK Special Purpose Vehicles (SPVs), group structures, trusts or overseas vehicles. In many cases, these structures have evolved over time as portfolios have grown and strategies have changed.

For brokers, this can be a challenge if they are dealing with lenders that take a rigid or box-ticking approach. From our perspective, experience really counts. Having the ability to understand how these structures work, why they exist and how best to lend against them can make a significant difference to outcomes for both brokers and their clients. That includes structuring solutions involving overseas SPVs and trusts where appropriate.

The brokers who tend to succeed in this space are those who act as advisers rather than deal arrangers. They understand how their clients’ portfolios are structured, what they are trying to achieve and where flexibility is required, and they work with lenders that can support that complexity.

From a commercial perspective, the benefits are clear: larger loan sizes, portfolio refinancing and repeat activity can create more stable, long-term relationships, with professional landlords often prioritising certainty, speed and expertise over headline pricing alone.

Pankaj Thukral, Chief Lending Officer at ÌÇÐÄVlog

Sources

Pegasus Insight: Landlord Trends Q4 2025

Lendlord: