Rising inflation, market volatility and geopolitical tensions are propelling investors back into the stability offered by the UK buy-to-let market as a reliable pillar of wealth creation and preservation. In a year set to be marked by political uncertainty and market volatility with more than 26 elections worldwide and rising geopolitical tensions, the UK buy-to-let market can provide a safe haven for domestic and overseas investors in 2024 when compared to investments like stocks, which are way more susceptible to market events.
The UK rental market is however changing and the ingredients for building a resilient and stable stream of income from the UK buy-to-let are no longer the same. In the past, investors often favoured single-lets and cheap property markets like Liverpool and Leeds for property investment. Yet, high-interest rates and souring construction costs mean that single-lets and low-rent markets are no longer an assurance of a secure and consistent return on investment. That’s why high-yield strategies such as coliving HMOs in mature markets like Oxford provide a more compelling investment proposition in 2024.
To start with, let’s explain what a Coliving HMO is. House of Multiple Occupation (HMOs) have been the strategy of choice of most professional property investors in the UK for a while now. By splitting a property into rooms which are let separately, investors can achieve a lower void rate and higher yield from multiple streams of income. Coliving HMOs are an evolution of this strategy where progressive investors and operators layer design, services, and technology to offer a superior product, achieving an even higher yield and pound per sqm than traditional HMOs.
Coliving is poised for growth in 2024 for the following reasons. It delivers a sound and practical solution to some of the UK’s most pressing housing challenges – namely, the high cost of living and appetite for higher quality as many professionals now work extensively from home. It suits the moment as its premium product and service make it easier to rebase rents in the current high inflation climate. Finally, it is most popular among 25-35-year-olds, which is the age group with the highest wage growth in the UK.
At B-Hive Living, we’ve been at the forefront of the coliving movement since its inception having won multiple national and international awards for our innovative business model and best-in-class management practices. Whether you wish to make your first step into property investment in 2024 or have a traditional HMO or building in Oxford and surrounding areas you wish to reposition as a professionally managed coliving asset we’re here to support you every step of the way through our know-how, technology and innovative business model.
Williams Johnson is the co-founder and CEO of B-Hive Living – a multi-award winning coliving brand, operator and asset manager of coliving properties with a strong track record of best-in-class design, investment and management. Our mission is to empower professional renters to lead a more connected, healthy and fulfilling lifestyle through co-living. This relentless focus on our residents’ wellbeing ensures a sustained demand wherever we operate.
