The HMO Success Podcast with Wendy Whittaker-Large

How will the new EPC regulations affect your HMOs?

In this episode I discuss the latest consultation launched by the Government on 7th Feb 2025 on 'Improving the energy performance of privately rented homes'. 

This is in conjunction with the previous consultation about the way EPCs are to be assessed. This is the 'Reforms to the Energy Performance of Buildings regime' consultation. 

It's good to see that HMOs are mentioned in each document (in other words the Government are aware that we exist)!

The only problem is that it could cause huge upset again to the sector. Combining this with the Renters Rights Bill, I think we will see more landlords exit the market and others finding that the upgrades are not possible to achieve. 

I'd love your opinions though!

 

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For more information, guidance and support to help you invest in HMOs and create a profitable property portfolio, please head on over to my website www.hmosuccess.co.uk

You'll find some free downloads to learn about HMOs as a high cashflowing strategy and how you can get started with very little money. 

If you want to learn more about my amazing tips which I compiled in my book '101 Essential Tips for Running a Professional HMO' you can get your own copy FREE (Just pay postage and packing)

www.101essentialtips.co.uk
 
For a FREE 30 minute call for any help you might need with HMOs, and to understand what I can offer you to help you progress your portfolio, please book a call here.

I look forward to hearing from you!

Wendy

 

 

HMO Market Predictions for 2025 - E - Energy I - Inflation E- Employment I - Interest Rates and R - Regulation

HMO Market Predictions for 2025 - E - Energy I - Inflation E- Employment I - Interest Rates and R - Regulation

For more information, guidance and support to help you invest in HMOs and create a profitable property portfolio, please head on over to my website www.hmosuccess.co.uk

You'll find some free downloads to learn about HMOs as a high cashflowing strategy and how you can get started with very little money. 

If you want to learn more about my amazing tips which I compiled in my book '101 Essential Tips for Running a Professional HMO' you can get your own copy FREE (Just pay postage and packing)

www.101essentialtips.co.uk/
 For a FREE 30 minute call for any help you might need with HMOs, and to understand what I can offer you to help you progress your portfolio, please book a call here: https://calendly.com/wendy-w-large

I look forward to hearing from you!

Wendy

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Daniel Hill’s 2025 predictions podcast 

https://podcasts.apple.com/gb/podcast/270-2025-property-market-predictions/id1498618503?i=1000682987558

Adam Lawrence - Partners in Property February Supplement - https://partners-property.com/supplement-2-feb-25-the-new-dawn/

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Transcription:

Hello and welcome to the first episode of the HMO success podcast for 2025. I've had a little bit of a break over Christmas and New Year and decided that it was time for me to take a few weeks off recording a podcast. I wanted to review things that were filtering through the pipeline, like the renter's rights bill. I also wanted to take stock of other people's views and opinions about the outlook for 2025 and consider what some of those impacts are going to be for this year. So while many people might have released their predictions and property thoughts for 2025 on the 1st of January, I'm a month late. I hope that you will find that this podcast will give you some thoughtful reflection on what has been an interesting January.

First of all, I'd like to say a massive thank you to those of you who listen to this podcast and write to me when I haven't done an episode and say "Wendy, when's the next episode coming out?" Thank you ever so much. You keep me accountable, keep me on my toes. And I hope that this podcast helps you as you invest in HMOs. I'd also like to thank everybody who participates in the community and who's investing in HMOs and gives me lots of food for thought, content, ideas, and subjects to tackle.

I'm looking forward to 2025. I think it's going to be a very interesting year. What I mean by that is it's going to be one where we're going to have to use our intelligence to navigate the market. Today's podcast is very much about using our intelligence, crunching some of the numbers and thinking more deeply about some of the statistics you might have already heard since the first of January.

There are a couple of people I want to give a quick shout out to who produce excellent material and whose views and opinions I value highly. One of them is Daniel Hill. He has the entrepreneurs podcast. He is very much about looking at business and growing your property portfolio as a business. I listen to a podcast of his a while ago and I thought it was excellent and I would agree with a lot of his conclusions. I'll put the link in the notes so you can jump over and listen to his podcast if you wish to.

The other person I'd like to mention is Adam Lawrence from Partners in Property. His property predictions or update on the market - he does a monthly newsletter for Partners in Property. That was released today and I've been mulling over some of those statistics that he's released. Again, I'll put the link in the show notes so you can go over to that and read his notes on the general wider housing market.

Today, I want to focus on my chosen topic, which is HMOs and predictions for 2025. I'm really delighted that today you have the honor of listening, not just to me, but also to my husband, my partner in crime, Andy Large.

The reason I've invited him on is because Andy's got a really deep knowledge and interest in macroeconomics. At home we have plenty of discussions about this topic. As we're running an HMO business and a property business, we're always very interested in looking at how these links work back and forth because housing is a massive part of our national economy. It's a huge part of our international economy and understanding the macro picture is very important when you're trying to make decisions about the micro picture, which is how you use your money to invest and make it grow, and hopefully also provide good quality accommodation for individuals.

Discussion Topics: EIER Framework

Energy

Wendy: Let's start with energy. What are your thoughts about what's happening in the energy world and market? And how's that going to affect us in HMOs?

Andy: It could affect folk differently because we have to recognize that there are different models for HMOs. Not every HMO is an energy inclusive model. Some have tenants that actually pay their own bills with individual room billing, particularly for electric sometimes for gas, mostly for electric. I think most professional HMOs at least are an all-inclusive model. Would you say that's right?

Wendy: Definitely. I think that particularly for the professional market, which is where we specialize, we offer that all-inclusive rent because I think it's really valuable for the tenant. There are so many benefits to it for the tenant. It's much easier for them just to move in and have one all-inclusive fee that they pay. It's rent, utilities, council tax, water, etc. It all goes into one part and makes it much easier for them to move in and move out and be more flexible.

As well as the actual energy costs of running an HMO, the other things on the horizon which I think are part of this wider industry that affect HMOs are regulation when it comes to energy - the EPC regulation, but also the wider costs of energy and the costs of moving to net zero. This is becoming much more prevalent. We are no longer just simply accepting that we should be moving to net zero as a fait accompli, but there are voices which are now counterindicating that.

As we've heard from President Trump across the pond, he stated that he is not going to support net zero and he's withdrawn the United States from the Paris climate accord and he's going to "drill baby drill." What does this wider energy industry direction of travel mean for us in HMOs?

Andy: My view on net zero is that it's a totally suicidal mission. Even if we achieve net zero, what would it do? When asked that question, the reply is "Well, we'll be showing the world how to do net zero." And my view is they'll be laughing at us, particularly in China as they've made billions probably trillions out of manufacturing solar panels and we'll have no energy independence.

The pertinent point for HMOs and rental properties is the EPC piece. That's where the rubber hits the road. My personal view is that this is going to be very hard now for Labor to inflict on the population of the UK. The idea was that by 2030, every rental property needs to achieve EPC C, which is unachievable anyway. There are millions of properties, at least hundreds of thousands that would never be able to meet that energy requirement because of the method of construction, their proximity to other properties, etc.

I think it's an even bigger political problem for Labor now because of the appalling performance in the opinion polls and the rise of Reform who are strongly opposed to net zero. Even if Labor were to introduce a bill or ministerial instrument that said you've got to achieve that target by 2030, that requires consensus across the House of Commons, because there will be another election before 2030.

They are doing a consultation about it at the moment as a live consultation. That's often what you do about what you're about to go wobbly on ideas. There's no certainty. There might very well be a law that comes in that says you have to do EPC C, and then a landlord is going to have to make a decision - are they going to do it?

This is one of the dangers of any of these types of legislation. It's like the car industry having to prepare for getting rid of all ICE vehicles, only to be told, "Oh, actually, you can make some ICE vehicles." It's like a big liner crossing the ocean - it's not very easy to change direction of travel halfway through a strategic plan.

Inflation

Wendy: Linked to energy, of course, is inflation, and this is clearly a topic which is very important when you're investing in property, partly because we talk about real assets hedging against inflation, hedging against effectively the decrease in the value of your pound. What is going on with inflation right now? The headline statistics are that as of the end of 2024, it was 2.5% annualized, which doesn't sound too bad. But what do you feel is going on with inflation?

Andy: You mean CPI inflation, which if you listen to the government inflation figure, that's really like asking a child to mark their own homework. I don't really believe that number. I think it is quite a bit higher than that because it doesn't include housing costs, which is a massive part of most people's monthly budget.

Even then, there are things in the mix that make your head spin. I was listening to shows about housing costs priced in gold, which is the only Tier one reserve asset that has no counterpart. And priced against gold, all these things have indeed been in deflation. Housing prices are in a deflationary cycle right now.

This is one of the problems with the fiat currency we have. It is very hard to make really solid predictions when fiat is such a fungible thing. But I think CPI is about to possibly go negative. I think rent levels are probably going to ease off for a variety of reasons, mostly to do with employment and the recession.

Wendy: I'd like to challenge you on that one. Inflation is a compounding problem. We're talking about two percent or two and half percent in 2024 on top of four and a half percent in 2023 on top of seven percent in 2022. It doesn't include house prices, which is why when you're doing a refurb these days, you can add another 30% on the cost on what you were doing three or four years ago because it's all that compounded inflationary effect on goods services, materials, etc.

I would argue that there is a possibility that although CPI inflation remains relatively low and the Bank of England have got a target to keep it at two percent, the wider inflationary picture - I believe there is a possibility that we're going to actually see effects of inflation coming through much more strongly and that could affect interest rates. Many people are suggesting the interest rates are going to start to come down this year. It would be great if they did, but I wonder actually whether interest rates could actually go up.

Employment

Wendy: What's going on with employment and unemployment?

Andy: I think it's quite simple. Rachel Reeves has created rather a hostile environment for employing lots of people and we're going to wait and see how heavily that weighs on our economy. The chances are it could be quite bad.

Wendy: I personally feel having spoken to a lot of people in the last couple of weeks about rooms and whether they're renting out and how long they're taking to rent out, there is a little bit of flat lining. The pace of filling rooms is not what it was a couple of months ago, although sometimes that is the time of the year. We have a slow month sometimes. People are still getting over Christmas. They're paying off their credit card bill. They haven't got any money to move.

The 23rd of January is apparently the day when most people apply for new jobs. It's a commonly known date. So I think by the time we get to February March time, things will pick up again. People are more available for viewing and you've got more hours of daylight to do the viewings.

Regulation

One of the areas of HMO that we've seen grow a lot over the last few years is social care, social housing HMO. Whether it's an HMO that you set up and you lease to a care provider or maybe a charity, those people may be vulnerable. They may be long-term unemployed. There may be other reasons why they're being housed by the third party provider.

What's very interesting to me, linked to social housing and the growth of social housing is debt at local government level. As of 2023, local government debt nationally was about nine billion pounds. This means that's about one thousand four hundred pounds per person in every local government area has debt to that level. That's the equivalent of many people's annual council tax bill.

The big regulation coming forth this year is called the RRB - the Renter's Rights Bill. That is rapidly making its way through the Houses of Parliament. It's being read currently in the Lords and we're awaiting some amendments. The HMO action group wrote to about 25 members of the House of Lords to try and influence them in their thinking about particular amendments to that bill.

Students are very badly treated by the Renters Rights Bill and I feel sympathetic towards those landlords that have offered really good quality student lettings for a number of years and now suddenly find that they cannot offer that fixed term tenancy of nine months or 12 months at the beginning. I think there's going to be ways around it. We don't do student HMO, so I'm not an expert in this field, but I know other people who are doing student HMOs and they've thought about it. I think again there's going to be creative solutions around it.

On that note, I'm going to call our discussion to an end. We've covered some of our thoughts and predictions about 2025. Some of these are certainties, some of these are possibilities, but whatever happens, we want to wish you a prosperous and happy 2025. Please note that none of this is intended as financial advice. It's simply our musings on what's going on in the wider world of macroeconomics and housing statistics. Keep providing good quality HMOs for your tenants because long-term people need somewhere to live. Everyone needs a home. Look forward to speaking to you soon.

How my Mindset Changed my Life with Sam Cooke from Blue Bricks Magazine

Sam Cooke is the owner and editor of Blue Bricks magazine - a people focused property magazine.

But when he started he was just an employee. How did he end up being the boss? And how is he creating an expanding business which is serving property people all over the UK?

In this revealing interview, Sam shares the secret sauce which has enabled him to grow the circulation and readership of Blue Bricks - and likewise its reputation. He has big plans for 2025 but his feet are firmly on the ground, and in this interview he shares why no is such an important word and why quick decision making is a core skill for any entrepreneur to master.

I loved his approach to business and the value of keeping the priorities at the top of his agenda by using one small word!

 

To find out more about Sam and Blue Bricks follow this link: https://bluebricksmagazine.com/

Is breakfast really the best meal of the day? Interview with George Samoila, host of the Manchester Property Investor Breakfast

In this episode of the HMO Success Podcast, I have the pleasure of hosting George Samoila, a respected property developer and investor based in Manchester, who also hosts the Manchester Property Investor Breakfast. George has built an impressive reputation as a savvy investor with a deep knowledge of Manchester’s property market and a talent for identifying high-yielding investment opportunities.

In our conversation, George opens up about his own journey from initial investments to scaling a successful property portfolio and becoming a local leader in this sector. We dive into some of the most pressing issues affecting HMO landlords today—from navigating regulatory changes to managing tenant relationships effectively. George also shares his expert strategies on financing, finding off-market deals, and maximizing rental income,

We kick things off by exploring George’s unique background—what initially drew him to property investment and how he’s navigated the challenges and opportunities along the way. Together, we dive into what defines the Manchester property market, examining current trends, key areas of growth, and the factors driving both rental demand and property values.

George also reveals what he believes truly makes a great HMO. From layout and design to tenant management and amenities, he shares his philosophy on creating high-quality HMOs that attract stable tenants and deliver consistent returns. Whether you’re a property professional or just curious about the industry, this episode offers invaluable insights from one of Manchester’s leading investors. Don’t miss it!

If you decide you want to attend the breakfast here is your link: https://www.meetup.com/manchester-property-investor-breakfast/

Be warned though: Tickets sell out fast!

Can you Automate your HMO Due Diligence? With HMO Checker you can!

Ed Kercher is an architectural technologist who founded HMO Designers (a national HMO design practice), and learnt the inside out way of developing HMOs. After realising that there was a faster, better way to do Due Diligence, he created HMO Checker - www.hmochecker.co.uk. His goal with HMO checker is to make concise and accurate HMO data available to all. In this podcast (which I have also recorded as a video so you can see the product in its demo phase - see my YouTube channel here), he describes how it works and the hours of time it will save you if you are doing HMO due diligence. 

If you're interested in getting on the waiting list or want to buy for yourself please use the code WENDY123 in the checkout box on the website (www.hmochecker.co.uk) this will get the user a 2-week free trial and 10 free credits to try out (this is usually 7 days with 5 credits), the 10 credits are worth £20.

 

You can contact Ed here:

Edward Kercher

Founder, CIAT Affiliate

on behalf of HMO Designers.

email// edward@hmodesigners.co.uk

website // hmodesigners.co.uk

phone // +44 7700 161419

 

Tenants, Landlords and Lettings - a (mostly) political discussion with Suzanne Smith from The Independent Landlord

Today's episode is very pertinent to the current times. With a snap election just called, and disarray over the Renters Reform Bill (now that it has been shelved) there's a lot of uncertainty around. What if we get a labour government? What will their stance be on tenants and landlords? Will the Conservatives make another stab at a RRB if they win?

My partner to discuss all of these issues is Suzanne Smith - a lawyer turned self-managing landlord with a portfolio of houses in Maidstone, Kent. She came to property investing fairly late when she “retired” as a corporate lawyer at the age of 51, after working for 25 years in senior in-house legal roles for multinational biotech companies.

Suzanne started to share what she was learning as a landlord on her Instagram account, @indie_landlord, with practical reels that also drew on her experience and training as a lawyer. This led to her setting up her blog, The Independent Landlord, in August 2022, which provides reliable, free content on all aspects of being a landlord. It’s grown to be one of the biggest blogs for landlords, with almost 20,000 click throughs on Google each month, and
thousands of subscribers to her weekly newsletter.

She co-hosts a new weekly podcast called Good Landlording with Richard Jackson, a landlord with a large portfolio who runs the property management software, Alphaletz. Suzanne is also an independent member of Propertymark’s disciplinary tribunal.

Website and social media links:

The Independent Landlord website: https://theindependentlandlord.com [Please
capitalise the “The” when referring to The Independent Landlord]
Instagram: @indie_landlord
X: @indie_landlord
LinkedIn: https://www.linkedin.com/in/suzannesmithblogger/
Good Landlording podcast website: https://goodlandlording.com
Good Landlording on the podcast apps: Spotify, Apple, Amazon

Saving money on your HMO utility bills with Crag Phillips from Smart Energy Solution and TED

With a wealth of experience spanning various facets of the property industry, Craig Phillips is a seasoned professional renowned for his expertise in property management. As the founder and owner of G8 Property in South Yorkshire, Craig has dedicated nearly a decade to providing exceptional property management services and coaching and mentoring property investors and letting agencies across the country.

Smart Energy Solution, a pioneer in energy efficiency, was founded by Craig Phillips, a former military professional turned HMO landlord and award-winning letting agent.

Phillips' extensive experience in the property industry illuminated a significant opportunity in energy management. Recognizing the growing need for sustainable and cost-effective energy solutions, he innovated TED, a smart energy-saving device, specifically designed to address the unique challenges faced by HMO landlords. In this podcast he does a live demonstration which you can see on my Youtube Channel: 

https://www.youtube.com/channel/UCNoytRBDtQ0KpvEenr067ww

TED's remarkable efficiency in reducing energy bills quickly garnered attention, leading to its widespread adoption not only by landlords but also by homeowners and hotels. This expansion marks a significant milestone in Smart Energy Solutions' journey, positioning TED as a versatile and indispensable tool in the quest for energy conservation and sustainability.

To contact Craig: 

01226 664435

www.smartenergysolution.co.uk

Getting the most out of your HMO - you get out what you put in! With Lucy Lea from Lea Properties In Ipswich

LEA Property Solutions was founded two decades ago by an enterprising individual fresh out of university. It began as a personal quest for ideal accommodation for Lucy. Frustrated by the lack of suitable options in Ipswich town center, she took matters into her own hands. Sourcing a property and persuading her parents to take on a mortgage, she set up her own house share. Little did she know that this endeavour would reveal a niche market waiting to be tapped.

Within a year and a half, the solo venture had expanded to managing five properties for family and friends. The allure of this lucrative rental model prompted her to leave her job and focus solely on her property business. Her passion for HMOs (House in Multiple Occupation) remained unwavering—the ethos was clear: providing tenants with a home they could be proud of.

Fast forward to the present day. and LEA Property Solutions has blossomed into a thriving enterprise. With a team of five, she operates out of the Westerfield Business Centre. Her portfolio includes over 40 properties and 250 tenancies, catering to both working professionals and student house shares. But it doesn’t end there. She offers additional property services, from sourcing to renovation management and interior design advice. Her experience and passion drive her to share insights at property events and podcasts, connecting with like-minded individuals in the industry.

To contact Lucy and find out more about what she does (and how she can help you if you're investing in Ipswich) her are her details!

Lucy Lea

Managing Director

LEA Property Solutions LTD

07811217072

Registered Company number 9022391

www.leapropertysolutions.co.uk

Seeing the Wood for the Trees - Knowing the Wider Economic Picture on Property Investing with Adam Lawrence

My guest this week has a vast financial and business background which made his entry into property investing an interesting one! Utilising his understanding and knowledge of the macro economic picture, he has been able to translate all those figures and graphs into meaningful content to help others invest wisely. 

Adam Lawrence has built a significant portfolio through adding value, leveraging safely and finding potential that others have missed. He now owns other businesses which are in the business of supporting his property investments. The central tenets are risk management and sustainable growth in a sector which is crying out for reform, efficiency, and ethical business people.

It was enlightening, educational and highly interesting to interview Adam - I discovered a lot I didn't know alongside our joint passion for seeing the 'bigger picture' when it comes to property investing. 

 

 

Focusing on one Tenant Type for my HMO - the pros and cons with Ethan Roscoe

Ethan Roscoe originates from South Africa. He came to the UK to start a new life and soon saw the possibilities that property investing offered him. After redundancy he came to realise the power of owning assets, and in this week's interview, he shares how he has maximised the assets to their full. 

In the early days, he adopted the suggestion to use his car as a tool for marketing - until a very funny thing happened. It had me in stitches of laughter. I wonder if it will make you laugh too 😁

Ethan has experienced the highs and lows of property and he has words of wisdom for those starting out in HMOs today. I think you'll get a warm glow listening to his story and realising that HMOs are possible for us all.