Professional tenants are able to save £134 more a month by sharing in a House in Multiple Occupation (HMO) rather than renting a one bedroom flat alone, according to new research from Platinum Property Partners (PPP), the specialist buy-to-let business.
A survey of HMO tenants by SpareRoom.co.uk and PPP shows that professional sharers can afford to put away an average of £308 per month by living in a flat or house share. In contrast, the average renter saves just £174 per month: £1,608 less over the course of a year.
The majority (89%) of HMO tenants surveyed said they would like to own their own home in the future and nearly one in ten (7%) believe they could afford to buy now. A further 29% could afford the mortgage payments but not the deposit or stamp duty.
If HMO tenants were to put these monthly savings towards buying a property, it would take them 5.6 years to save for the average first-time buyer deposit of £20,600. For private renters not living in an HMO, this would take 9.9 years – almost double the time.