Paying More for Social Harmony in a HMO
New findings from COHO, a platform dedicated to managing Houses in Multiple Occupation (HMOs), show that nearly half of tenants in shared homes would be willing to pay up to 10% more in rent if it meant living with housemates who were socially compatible.
Sharing a home is a common experience for many, and one of the main draws of HMO living is its cost-effectiveness compared to renting alone in the private rental sector.
COHO’s recent survey highlights that 57.5% of tenants cited affordability as the most significant benefit of shared living, a view that isn’t surprising considering the average UK rent has jumped by 8.1% in the past year, now reaching £1,338 per month.
But affordability isn’t the only perk. The social environment that shared housing fosters is also highly valued. According to the same survey, 48.6% of tenants appreciated the sociable nature of HMOs, making it the second most important benefit. Another 43% believed shared living was ideal for newcomers to a city, helping them build social connections.
COHO also explored whether tenants would be willing to pay extra for a more compatible living situation. While 26.5% preferred lower rent over social compatibility, a significant 47.2% said they would pay up to 10% more to live with like-minded individuals.
Social compatibility is clearly important — 65.9% of respondents said it was important to know about their housemates in advance, and 39.8% gave this factor the highest priority rating. Nearly 40% of tenants indicated they’d be more enthusiastic about moving into a shared property if they were confident they’d get along with their housemates.
The shift in tenant priorities:
Shared living has long been part of the rental landscape, but today it’s evolving, driven by tenants who value lifestyle and social interaction just as much as affordability. The sector needs to adapt to this change. Many renters want to connect with their housemates, but they often don’t get the chance to understand who they’ll be living with before moving in.
Landlords who can offer insight into potential housemates are in a better position to foster a friendly, cohesive living environment — benefiting tenants and making good business sense. Lower turnover and reduced vacancy periods are likely, and as our data shows, tenants may even pay more for the right social match.
Creating this compatibility is central to COHO’s mission, which is why we’re becoming a go-to platform for those looking to find the perfect shared living arrangement.
