Use Class

Local planning councils in the UK assign a use class code to properties, defining what they are and what they can be used for. This was to prevent too much or too little of a particular category going into each area of their borough. For example, a HMO has a different use class to a family home and similarly with types of businesses on a retail street.

Serviced Accommodation

In layman’s terms, these are fully furnished properties which are available for both short or long term let. This type of accommodation may also offer facilities similar to those offered by hotels and are often booked via online platforms like ‘Airbnb’ and ‘Booking.com’.

ROI

Return on Investment (ROI) is a performance measure given in a percentage, used to evaluate the efficiency of an investment or compare the efficiency of a number of different investments. This is a useful measure when comparing investment in property to others and to quantify portfolio efficiency.

ROI (%) = (Net Annual profit / Cost of Investment) x 100

HMO

A house in multiple occupation (HMO) is a property licensed by local council and rented out by 3 or more unrelated people, but share facilities like the bathroom and kitchen. They are sometimes called a ‘house share’ or “shared home’.

HMOs are assigned a use class code by their local council and will have a specified density allowed within a neighbourhood.