Frequently asked questions
Everything you need to know before your first investment. Can't find what you're looking for? Browse deals and send us an enquiry - we're happy to talk it through.
What is an HMO?
A House in Multiple Occupation (HMO) is a property let out room-by-room to multiple unrelated tenants, each with their own tenancy. Because rent is collected per room rather than per property, HMOs typically produce a higher rental yield than a standard single-let buy-to-let.
What does Prosper Housing actually do?
We source HMO-ready properties and negotiate the purchase price down on your behalf - that part is the same on every deal. From there you choose how it's run: fully managed, where we also project-manage the refurbishment, sign a 5-year lease with you, and handle tenants, rent collection and maintenance for the term; or self-managed, where you take the same sourced opportunity and run the refurb and lettings yourself, with no sourcing fee. Every deal page shows both numbers side by side so you can compare before deciding.
What's the difference between fully managed and self-managed?
Fully managed is completely hands-off: we negotiate, refurb, license and let the property, then hand you a fixed monthly income under a 5-year lease - our £6,000 sourcing fee is priced into that yield. Self-managed is the identical sourced deal, minus our fee and minus us: you handle the refurb and lettings yourself, which is why the yield comes out higher. Either way you get full access to our sourcing data, comparables and area insights for free - the fee only applies if we're the ones doing the work.
What happens after the 5-year lease ends?
For a fully managed deal, near the end of the term we'll be in touch to discuss your options: renewing the managed lease, taking over self-management of the tenancies, or selling the property. Nothing happens automatically - it's a conversation with you before the term expires. This doesn't apply to a self-managed deal, since there's no lease with us to begin with.
What is LHA, and how does it affect my rent?
LHA (Local Housing Allowance) is the government's benchmark rate for housing benefit in a given area, published per room size (a "shared accommodation rate"). We use published LHA rates as a conservative baseline when projecting rental income, since room-by-room rents in most HMO markets track close to this figure. Actual achieved rent depends on the local market and tenant mix.
How is net yield calculated?
Net yield on each deal is the projected annual rent divided by the total cash required to complete the deal - purchase price, stamp duty, refurbishment, legal fees, and (for a fully managed deal) our sourcing fee, combined. This gives a more realistic picture of your actual return on the cash you put in, since it accounts for every upfront cost, not only the headline purchase price. A self-managed deal drops the sourcing fee from that total, which is why its yield is higher - toggle between the two on any deal page to compare.
Is the net yield the same as what I'll actually receive?
Net yield describes projected rental income relative to cash invested; if you use a mortgage rather than buying in cash, your actual return on your own deposit will differ once mortgage interest is deducted. Use the mortgage calculator on each deal page to see a leveraged, interest-only estimate based on your own deposit.
Why is some information hidden until I log in or make an enquiry?
We publish enough on each deal - price, projected rent, and net yield - to judge whether an opportunity is worth a closer look. Full details (exact address, bedroom counts, itemised fees, lease terms, and independent Area360 comparables) unlock once you create a free account. There's no card required and no subscription - it's completely free to see everything, on every deal, whether you go fully managed or self-managed. Logging in just lets our team follow up properly rather than a deal being lost in a crowd of anonymous browsers.
What's the social impact angle?
We work with housing providers to place tenants affected by the UK's housing shortage - including people facing homelessness and those in the asylum housing system - into the HMOs we convert. It's not a trade-off against your return: investors get one of the sector's stronger yields, and the property provides a well-managed, licensed home for someone who needs one.
Do I need a mortgage, or can I buy in cash?
Either works. Deals are listed and their headline net yield is calculated on an all-cash basis. If you're using a mortgage, use the calculator on each deal page - it defaults to a 25% deposit (the standard requirement for most HMO mortgage products) but you can adjust it to see how your own numbers change the return.
How do I get started?
Create an account, browse live deals, and save the ones you're interested in. When you're ready, make an enquiry on a specific deal and a member of the team will call you to talk through the numbers and next steps.