HMO & MUFB basics

An HMO (House in Multiple Occupation) is a property let to three or more unrelated tenants sharing facilities. A MUFB (Multi-Unit Freehold Block) is one title with multiple self-contained units.

Both produce higher yields than a standard single-let — and both attract a smaller, more specialist lender pool. Many high-street BTL lenders simply won't do them.

Specialist lenders typically cap bedrooms or units (often 6 for HMO, 4–6 for MUFB), require an Article 4 / Section 257 check, and often want landlord experience before they lend.

You also pay slightly higher rates and arrangement fees than a vanilla BTL, but the yield uplift usually makes the maths work — provided you understand the management lift involved.