Mortgage guide
Residential valuation
Residential valuations are standard valuations that are primarily used on single unit buy to lets, which includes comparable valuation methodology.
- Published
- 30 Mar 2026
- Last reviewed
- 11 Sep 2026
- Reading time
- 2 min
Residential valuation
Residential valuations are standard valuations that are primarily used on single unit buy to lets, which includes comparable valuation methodology.
Usually valuers average the most suitable 3 comparable, that are:
- Like for like
- Within a quarter mile
- Sold and not advertised
- Bricks and mortar
This is usually used on HMO mortgage applications, with some lenders that either don’t specialise in HMOs, or lenders that cant instruct a hybrid valuation method due to the properties configuration.
Regardless of planning permission, if a property is easily converted back to a family home, or is not adapted considerably to compliment a co-living layout with adequate services such as ensuites, will be more suited towards a comparable, residential valuation.
Products with this valuation method are usually a lot cheaper, but can of course create a lending shortfall if larger HMOs use products with this valuation methodology.
Experience
Experience is not usually required for HMOs with less than 6 rooms with a residential valuation method, however, some lenders offing this product may require 12 months landlord experience.
HMO calculator
HMO mortgage criteria
These wider product criteria provide context for this guide. The lender will assess your individual case.
| Criteria | Detail |
|---|---|
| Borrowers | Personal, Ltd co, LLP, Offshore Trusts |
| Repayment type | Interest only, repayment |
| Term | Up to 40 years |
| Experience | Not required |
| Max applicants | 6 |
| Valuations available | Market value 1 (MV1) Commercial valuation (yield based), Hybrid, or bricks and mortar. |
| Max rooms | None |
| Tenant types | Students, professionals, social housing, DSS |
| Locations | England, Wales, Scotland & Northern Ireland |
Published indicative terms for the wider product category are shown for context. They are not a quote for the specific circumstances discussed in this guide.
| Feature | Detail |
|---|---|
| LTV | 75% |
| Fixed Term | 5 Years |
| Rate | 5.69% |
| Product Fee | Nil |
| Valuation | Bricks and Mortar |
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Frequently asked questions
Are HMO valuations regulated?
Yes. Lender-instructed valuations are carried out by RICS-registered valuers, who are bound by RICS standards and ethical codes.
What does an HMO need for an MV1 valuation?
The property typically needs at least 5 bedrooms, en-suites to most or all rooms, adequate communal space, and a configuration not easily converted back to a family home. Properties of 6 to 7 bedrooms and above usually achieve the strongest uplifts.
What are the three HMO valuation methods?
HMO lenders use a commercial investment valuation (MV1) assessed on yield, a hybrid valuation combining comparables with an uplift for HMO adaptation on a Vacant Possession basis, or a standard residential comparable valuation.
Can I get a hybrid valuation on an 8-bed HMO?
Yes, and these products are usually much cheaper, but the method may not be appropriate. If the vendor is selling at a price based on a commercial valuation, obtaining the same valuation basis on the mortgage matters, because a hybrid valuation is less likely to reach the purchase price.
How much do HMO mortgage valuations cost?
HMO mortgage valuation fees scale with the property and the valuation route rather than following a single tariff. Comparable valuations on small House in Multiple Occupation (HMO) properties price like standard buy to let surveys, while income-led MV1 reports from commercial valuers cost materially more. Each lender publishes its own fee scale at application.
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