Eastleigh: Our HMO Investment Guide
Eastleigh, situated centrally in Hampshire, is a high-growth borough that serves as a crucial transport and employment hub adjacent to Southampton. Known for its strong rail links, proximity to Southampton Airport, and major employment centres, Eastleigh is becoming increasingly popular with savvy HMO investors seeking markets with lower regulatory friction. We believe Eastleigh is an ideal location for both first-time and experienced HMO investors looking for stability and scalability. This is your complete guide to HMO investment in Eastleigh. Why Invest in HMOs in Eastleigh? One of the most significant reasons Eastleigh is gaining popularity with HMO investors is its relaxed planning environment compared to its neighbours, which greatly reduces investment risk and speeds up project timelines. No Article 4 Direction for HMO Conversions Unlike Southampton City Council, Eastleigh Borough Council (EBC) has not implemented an Article 4 Direction specifically targeting the conversion of houses into small HMOs (3–6 tenants). Transport Links and Professional Demand The town’s economic base provides reliable demand for shared housing from key professional sectors. Eastleigh has excellent rail connections, linking directly to London (via Winchester/Southampton) and the wider South Coast, making it a convenient base for young professionals priced out of larger cities. The area is also home to Southampton Airport, major industrial estates, and is a hub for the rail industry (Network Rail depot). These factors ensure a consistent demand from key workers and professionals seeking affordable, well-connected shared accommodation. Housing Stock Eastleigh’s housing stock often includes traditional semi-detached and terraced houses from the 1930s onwards. These properties typically offer generous room sizes and internal layouts that are conducive to HMO conversion, often accommodating required communal space and potential for ensuites. Property prices are also generally more affordable than in parts of Southampton, enhancing the potential Return on Investment (ROI) and making refurbishment projects more financially viable. HMO Licensing in Eastleigh Eastleigh Borough Council simplifies the compliance process by only adhering to the statutory minimum requirements for licensing. Mandatory Licensing As with the rest of the UK, Mandatory HMO Licensing applies to any property that houses: Landlords must submit an application to EBC, ensuring the property meets all safety and amenity standards, and demonstrating they are a ‘fit and proper person’ to hold a licence. Mandatory HMO licence fees in Eastleigh are in the region typically from £800 to £1,200 for a standard five-year licence. It is essential to confirm the precise, up-to-date two-stage fee structure directly with EBC before applying. No Additional or Selective Licensing Crucially for investors, Eastleigh Borough Council does not currently operate an Additional or Selective Licensing scheme. This means smaller HMOs (3 or 4 tenants) are not subject to the local authority licensing regime, though they must still comply with all statutory health, safety, and amenity standards. This further simplifies the regulatory landscape compared to neighbouring areas. Rental Yields and Investment Potential HMO rental yields in Eastleigh are typically strong due to consistent demand from professionals and the relatively low barrier to entry for small conversions. Yields of 8% to 12% are not uncommon for well-executed HMOs, significantly outperforming standard Buy-to-Let properties in the area. The combination of low planning friction (no Article 4) and minimal licensing complexity makes Eastleigh a compelling option for investors focused on efficient capital deployment and scaling their portfolio. Best Areas to Invest in HMOs Eastleigh Based on transport links, housing stock, and professional demand, these areas are excellent starting points for HMO investment: Area Best For Rationale Eastleigh Town Centre / Fair Oak Area Professionals & Commuters Close to the train station, key transport links, and local amenities; popular with professionals working locally or commuting. Chandler’s Ford Premium Professionals Higher quality residential area, often attracting professionals working at Southampton Science Park or major employers along the M3 corridor. Bishopstoke / Boyatt Wood Value & Access More affordable property prices, offering excellent value for conversion while maintaining good road links to the wider borough and M27. Final Takeaways from HMO Investment in Eastleigh To conclude, Eastleigh presents a strong, strategically advantageous opportunity for HMO investment in the South East: If you’re considering launching or expanding your HMO portfolio in Eastleigh and would like a feasibility assessment, planning support, or help sourcing the right property, feel free to get in touch.