Based on the average first-time buyer deposit of £20,600, tenants living in flatshares can save the necessary funds four years earlier than one bedroom flat renters; who would have to save for 9.9 years.
Professional tenants are able to save £308 per month by living in a HMO share compared to £174 for those living in a one bedroom flat, a 77% increase.
Steve Bolton, founder and chairman of Platinum Property Partners, said: “Our research shows that living in an HMO is far more affordable than renting alone – and means HMO tenants have a realistic timeframe for saving up for future goals like a house deposit.
“HMOs aren’t just more affordable – they also offer high quality, flexible living. Living alone isn’t for everybody, and many HMO tenants enjoy the social aspect of living with a group of new people.
“For those who don’t want to commit to one location just yet, HMOs are also an enjoyable and affordable way of testing the waters in a new area. They also remove the cost and hassle of moving from one unfurnished property to another – which can prove invaluable when moving frequently for work.”
The typical monthly cost of a room in an HMO (including bills) is £556, while a one bedroom flat costs £975 per month once council tax, gas, electricity, water, broadband and TV are taken into account. Therefore renting a one bedroom flat costs £5,028 more annually than renting a room in a HMO.
The majority (89%) of HMO tenants surveyed would like to own their own home in the future. Three in 10 (29%) could afford the mortgage payments but not the deposit or Stamp Duty.
