Post-COVID Co-Living
Post-COVID Co-Living
It’s been really interesting seeing what will happen post-COVID to HMO occupancy and the habits of tenants…
Are more people going to be working remotely (from home), and does this mean that the demand for HMOs with desk space or more amenities for home working will prove the most popular?
Or, are people desperate for human interaction now that the UK is opening back up again and a return to work, including going back full time to the towns and cities for work and social reasons?
Will potential tenants be keen to go back to the 'big cities' or can they create a better work/life balance working from home in smaller, leafier, and cheaper places?
So which way will the HMO trends go post-COVID?
Cater for home working spaces (which may mean steeper rents but more amenities to the tenants) or are we expecting a rush of people desperate to get back to the office?
Richard Nicholls, Director of HMO sales specialists The Property Advantage, has kept a close eye on tenant and HMO trends over the last 12 months,
"The co-living (or HMO) industry suffered massive changes when the pandemic hit. Properties either fell on the good or bad side of the disruption caused by the lockdowns. Some of the HMOs we visited and sold excelled in 2020 as they were already (by chance usually) filled with key workers or those employed in roles unaffected by the pandemic. Other HMOs suffered near-fatal blows to their occupancy and investment value due to the tenant base being affected by the closure of industry - the hospitality industry being one of the hardest hit and a large contributor to co-living tenants across the country."
As the country got back on its feet and recovered from the lockdowns and closures, co-living tenants were faced with decisions over their next move...
"For those who left the larger cities to spend lockdown 'back at home' (think younger London-based professional tenants) or the tenants that have got used to changes in their work/life, do they return to the office and their old way of life? Or do they stay outside of the larger cities and potentially live in self-contained accommodation (or even afford to buy) in places that offer space, amenities, and a chance to work from home full or part-time post-COVID?", Richard continued.
The next 12 months will give us the answer to the habits of co-living tenants across the country and the real long-term effect the pandemic has had on the sector.
The Property Advantage are specialist HMO brokers, working nationally with landlords to secure new buyers for their multi-let investment properties. You can visit their website www.thepropertyadvantage.co.uk for more information.