HMO Demand and Article 4 in Torquay

Torquay and Paignton are seen as the English Riviera, with fabulous weather for most of the year but also a growing hot spot for HMOs. 

Most HMOs in Torquay and Paignton are geared towards the professional market, with some HMOs focusing on social housing. 

There is no article 4 currently in Paignton and Torquay but that can all change very quickly as we have seen in other cities. With around 100,000 population in Torquay and Paignton combined we class this area as a secondary HMO investment spot, but one of the highest populated areas in the UK currently not to implement article 4. This presents a significant opportunity to value investors looking to get in before we likely see price increases after articld 4 implementation. 

Tourism in Torquay

As a key part of the English Riviera, Torquay welcomes approximately 4.5 million visitors annually, comprising both holidaymakers and day-trippers. Its attraction stems from stunning coastal landscapes, historic landmarks, and family-friendly entertainment. While tourism remains steady throughout the year, the summer season sees a significant increase, drawing visitors to its beaches and seasonal events.

Accommodation for Corporate Visitors

Torbay is increasingly recognised as a centre for innovation, particularly in photonics, healthcare, and advanced manufacturing. Key facilities such as the Electronics and Photonics Innovation Centre (EPIC) in Paignton and the Horizon Centre at Torbay Hospital host corporate professionals, research teams, and specialists, driving demand for flexible, premium housing. The area also supports major firms like Lumentum, Spirent, and Gooch & Housego, which maintain a steady requirement for short- to medium-term accommodation.

Core Sectors Contributing to Demand

1. Photonics and Electronics: As a UK leader in photonics innovation, Torbay’s high-tech cluster centred around EPIC attracts professionals specialising in advanced technology.
2. Healthcare and Medical Research: Torbay Hospital plays a pivotal role in clinical research, drawing medical staff and researchers working on projects in fields such as diabetes and dementia.
3. Advanced Manufacturing: Businesses in Torbay’s manufacturing sector, such as Casting Support Group, contribute to the area’s economy, requiring lodging options for engineering teams and corporate clients.

Accommodation Needs of Contractors and Infrastructure Workers

Beyond tourism, regeneration projects across Torbay have amplified the need for contractor-friendly housing. Significant initiatives include Torquay’s £21.9 million Town Deal, Paignton’s £13 million Future High Streets Fund, and the Torquay Gateway Project. These projects attract a range of skilled workers who rely on flexible, extended-stay options.

Healthcare-Specific Housing Requirements

Torbay Hospital serves as a major employer in the region, creating a continuous demand for accommodation for locum doctors, healthcare staff, students, and consultants. Housing tailored to this sector often includes features such as proximity to the hospital, flexible booking options, and quiet environments suitable for shift workers. This demand remains steady year-round, unaffected by seasonal fluctuations.

The interplay of tourism, innovation, and healthcare ensures that Torbay’s rental market remains a dynamic and reliable opportunity for accommodation providers.