These properties are typically larger houses converted into multiple rooms or units, each leased to different tenants. They are commonly used to house individuals such as asylum seekers.

HMOs can offer higher rental yields due to the multiple income streams from individual tenants. However, they require more management and often involve higher maintenance costs.

Studio apartments are smaller, self contained units, ideal for single occupants. These are often used for tenants who require minimal space, such as young care leavers transitioning to independent living.

Studios are generally easier to manage and have lower running costs. They are particularly attractive for investors seeking properties with low void periods, as there is strong demand for affordable, single occupant housing.

We see a lot of MUFB properties now being lease to social housing providers. Demand for the social housing sector is increase rapidly and opportunities for private investors seem to be increasing, with MUFB properties, they are usually freeholding buildings with multiple dwellings that could be most suitable for a social housing provider and would provide multiple units in one area. There are buy to let mortgage lenders that will accept a lease from a social housing provider so it can be a great opportunity.

Traditional houses and flats leased for social housing purposes, often accommodating families or groups requiring more space.

Houses can provide stable long term income, particularly when leased to organisations like Serco or Mears, which are responsible for property management and tenant placement. The steady demand for family homes in the social housing sector ensures consistent returns.

Asylum seekers are individuals who have fled their home countries and are awaiting a decision on their asylum status. They are often housed in properties leased to organisations like Clear Springs or Serco, which provide management and support services.

While these tenants often require less direct management from the landlord, the properties may experience higher turnover rates. However, the backing of government contracts often ensures rental payments are secure.

These are young adults who have recently left foster care or other state care systems. They are often placed in smaller units, such as studio apartments or shared accommodations.

Care leavers typically receive support from local authorities or charities, which helps to mitigate the risks associated with rental payments. However, they may require properties that are closer to support services and amenities.

These tenants require some level of assistance with daily living activities, often due to physical or mental health challenges. Properties used for assisted care living are typically adapted to meet specific needs, such as wheelchair accessibility or emergency alert systems.

These properties often involve higher upfront costs for necessary modifications, but they offer the potential for long-term, stable income due to the high demand for supported living environments. These properties can be c3b use class and covers properties used as a dwelling by up to six people living together as a single household, where care is provided to residents. This category is particularly important for properties used for supported living arrangements, such as those accommodating individuals with learning disabilities, mental health issues, or other care needs.

Individuals transitioning back into society after serving prison sentences. These tenants are often placed in halfway houses or supported accommodations managed by organisations specialising in rehabilitation.

While housing ex-convicts can come with higher perceived reputation risks for lenders and so borrowers may need to turn to more specialist lenders to get buy to let mortgages on properties with this type of tenant occupation. Additionally, properties in this category often benefit from long-term contracts with government-backed organisations so they can be lucrative, but may require a higher tier cost on mortgage lending.