As we find ourselves in the mist of summer of 2025, the housing market feels a little… well, disjointed, really.
Owner-occupier sales are slowing down – normal for the summer, but what isn’t so normal is the fall in property prices – a 1.2% drop in July, according to Rightmove’s latest House Price Index, the steepest drop in over 20 years. Nationwide back up the sentiment, if not quite the numbers, reporting property values to have dropped by 0.8%. It has left homeowners feeling just a bit uneasy, even as major news outlets start to ask: are we seeing a crash?
The residential lettings market too is looking at more supply than this time last year. 15% more in fact. Rents are no longer rocketing ‘quite so much’ as they were – although when still over 11% up from last year, it is very premature to call it some sort of crash.
But when it comes to our world, working with HMOs, demand is holding firm – especially from younger renters, key workers and other tenants priced out of other types of property across Southern England in particular.
At LEA Property Solutions, we manage shared homes for a wide range of landlords across Ipswich – and we’re seeing firsthand how the rooms in good HMO properties, well maintained, at the right price, with the right management, will still let out very quickly.
But given today’s climate, we would advise landlords that they can’t afford to coast. With more competition, more cautious tenants and with news headlines pointing to downturns at the very least, getting your property market-ready means more than just a tidy-up and a rent review.
Let’s take a quick look at what is really happening in the market right now – and how successful landlords are responding in a shifting property landscape.
A Cautious Market – But Demand is There
There isn’t a collapse in our view – not that we can see on the ground. But I think it is fair to say that there has been a shift in the market.
Unemployment has edged up to around 4.6%, and whilst wages are growing – up by 5% in a year, 1.8% adjusting for inflation, according to data from the Office for National Statistics (ONS) – it means that many renters are doing the maths.
People are still moving – but they’re not overpaying. They’re looking at value, not just price. Importantly, they want to feel good about where they live. And many tenants – especially younger or single tenants – would prefer to spend the same on a great room in a great shared-house, rather than poor accommodation that is all theirs, somewhere less salubrious and badly maintained.
That means that HMOs don’t just offer an affordable route to secure, well-managed housing, they offer an attractive one.
When tenants have more choice, though, landlords need to work harder to show why their property is the right fit.
Insights from the HMO Summit: It’s About More Than Rent
I recently attended the HMO Summit & Awards 2025, at Stowe House in Buckinghamshire – a great day where the best of our industry came together. One thing that came through loud and clear, is that the best landlords and agents aren’t just letting out rooms. They are curating wonderful living enviroments. They are creating spaces that support wellbeing, foster community in particular, and give tenants somewhere to thrive – not just to survive.
You can’t fix everything with fresh paint and a mattress in a box. If you wouldn’t live there, why should a tenant?
The top performers in the HMO sector are thinking like hospitality brands, not just housing providers. The communities they are building are extraordinary – and it isn’t difficult to achieve. It takes a leap of faith, a little expense and some commitment to make it work – but the rewards are incredible.
If you’re worried how to make your HMO property work for you, it is something I would encourage you to look at. How can you create a space that tenants will remember for the rest of their lives as being ‘the best place I ever lived’ – during what can then quite possibly become ‘the best time of my life’.
That is the way to think about it, when you are planning your HMO renovation. These are the types of properties where tenants will pay a little more, to truly enjoy the place they lay their head; a place to call ‘my home’ not just ‘my house’.
Where Landlords Go Wrong: Price Without Value
With supply rising, some landlords panic and slash rents instead of investing what they will lose over 12 months into improvements. Others do the opposite; they hold out for last year’s rent, while rooms sit empty.
Neither works for long.
The sweet spot comes in value-led pricing. It means looking closely at the competition and working out what you can do better, offering clear benefits, investing in the property and then investing in the presentation of the property.
Tenants today want clarity, comfort, and confidence. HMO tenants are like anyone else; they want a lifestyle. The landlords and agents that deliver that are those who reap the rewards.
What Makes a Standout HMO Property in 2025?
Here’s what we’re seeing tenants respond to:
✅ All-inclusive bills – especially with energy prices still fluctuating and council tax uncertain. It might feel like a giveaway, but most HMO landlords offer it; if you don’t, you might find you get left behind.
✅ Genuinely sociable spaces – not just a microwave in the corner of a hallway, not a motley collection of uncomfortable chairs squeezed into the smallest space available. Create somewhere you would want to relax on a Sunday. You will find tenants who feel the same.
✅ Clean, well-presented bedrooms – with good storage and natural light, space to move around and feel at home. You can choose to offer somewhere that tenants can simply lay their head, or you can choose to create a space where tenants can really relax, unwind, study… whatever it might be. You know that feeling you get when you turn up at a nice hotel? Why not aspire to create that feeling for them? Really, it is never going to do you any harm!
✅ Safe, secure properties – compliant, clear points of contact – these things are standard. But tenants appreciate knowing it – so consider ways of showing them. It only takes light touches but it can make all the difference.
✅ Thoughtful touches – a welcome pack is fine… but what else can you do? A fortnightly clean? Why not weekly? And when you’re cleaner is in to do the weekly clean, how about including fresh flowers with instructions to place in a vase on the kitchen table? Perhaps you can consider chatting to the local takeaways to arrange a loyalty card for your tenants that gives them 10% off? How about window cleaning and gardening included, so outside looks as good as inside? It might cost you a little – but can you not absorb that if the rent is right?
Tenants are happy to pay good money to rent something that is ‘better’.
In any case, it is not about spending a fortune. It’s about showing you care. That is how you retain great tenants; that is how you avoid a void by having your tenants become your sales force for you when others move on.
Be the landlord that has the property that tenants are desperate to live in.
Our View
At LEA Property Solutions, we’ve always believed in managing HMOs as homes, not just assets. It means understanding tenant behaviour, supporting landlords through changing markets, and making sure that every property is set up for long-term success – financially and reputationally.
Our advice to landlords in Ipswich is really pretty straightforward:
✔ Keep your rents competitive – but that doesn’t mean racing to the bottom
✔ Invest in the tenant experience – happy tenants stay longer
✔ Don’t DIY your marketing – professional listings let faster; go the extra step and get it done properly by an agency that treats it seriously with staging rooms and therfore photos.
Above all: manage your property like a commercial enterprise by all means, but do it with heart and soul. It pays dividends.
Landlords who understand their audience, present their properties superbly and focus on tenant experience are those who will stay profitable, stay successful, and stay out of trouble.
If you want to talk in detail about how to make your HMO property really pop, let’s talk soon – Lucy Lea
FAQ: Renting and Managing an HMO in 2025
Q1: Is there still strong demand for HMOs in Ipswich in 2025?
Yes. While the broader rental market has seen more supply and slower growth, demand for well-managed HMOs remains strong, especially among young professionals, key workers, singles, and those priced out of solo rentals. Value, quality, and location matter more than ever, and Ipswich has a young workforce eager for quality accommodation.
Q2: What are tenants looking for in a shared house?
Today’s tenants want more than just a room. They’re looking for homes with clean, comfortable bedrooms, sociable shared spaces, all-inclusive bills, and a sense of community. Presentation, reliability, and thoughtful extras can make a big difference. We have seen providers elsewhere in the country creating real communities in their shared houses – we think the market is ripe in Ipswich for a savvy landlord to swoop in and offer the same.
Q3: How should I price my HMO rooms in the current market?
Focus on value-led pricing. Don’t just chase the highest rent without looking at what comparable properties are offering, and then make sure your rooms and your properties really stand out. Overpricing leads to voids; under-pricing however can lead to churn, if investment in the property itself isn’t made. So invest in the property and make it somewher that you would love to live yourself. The sweet spot is competitive pricing with standout features and excellent presentation that makes tenants feel there is no place like home.
Q4: What’s the biggest mistake HMO landlords make?
Treating a property like a cash cow, not a home. The best HMOs are thoughtfully designed, professionally managed, and most importantly tenant-focused. When you create a space people love living in, everything else, including profitability, becomes so much easier.
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