London is one of the greatest cities of the world… we are a global leader in banking and financial services.
We have sports (Rugby, Wimbledon, Football, and Cricket). Then there’s the theatre, museums, parks, shopping. And the food, pubs, restaurants, iconic landmarks… you name it.
Living in London is a dream come true, but only if you can afford to live here.
After all, as Londoners know better than anyone, our city is in the middle of a housing crisis, which is caused by the extreme cost of living.
In fact, research from ECA International shows that once again London is the most expensive city in Europe to rent accommodation. The average rent is more than a third of a typical household income.
So what’s a viable solution?
According to BBC News, the Mayor of London announced that a record number of affordable homes had been built with more being planned for 2018.
Mr Khan said London needs “more than 50,000 new affordable homes to be built a year” to help ease the housing crisis.
As a landlord, a direct way you can help ease the crisis is by providing affordable rent with Houses in Multiple Occupation, better known as HMO.
Not only will this help provide more people with affordable accommodation. This also generates a rental income increase of four to five times your current return.
The definition of an HMO is a ‘multi-let’ rental property that has three or more tenants, not from one household/family, that share amenities. This can include:
• A house which is split into bedsits or units
• A house, or flat share, where each of your tenants has their own tenancy agreement
• Students who live in shared accommodation
If you own an existing single dwelling house, there’s the opportunity to convert this into a high-quality regulated HMO property.
Here’s how it works…
If you own a three-bedroom property, then some of the conversions you may be able to do might include:
• Adding a loft
• Extending the rear of the property (if the backyard is large enough)
• Converting existing living areas into separate units
For example, if you own a three-bedroom property, this can typically be converted into six units, each with ensuites and kitchenettes, as well as include a communal kitchen and laundry.
Before you consider converting your property, you need to speak to experienced professionals to advise you on what is possible for your property, what are the expected costs, how long will it take and what your council requires to ensure you get your HMO licence.
For our clients, we provide experienced professionals who give innovative solutions using leading-edge technology, best industry practice combined with their own personal property experience.
After all, you want to create a quality home – one that your tenants will be proud to call home.
If you’d like to find out if your property can be converted from a single dwelling house into a regulated HMO property, then I encourage you to call us on +44 (0) 203 286 6468 or email us at HMO@RekaProperty.co.uk to book a complimentary appointment.
Together we can provide ingenious, innovative solutions to ease the housing crisis.
P.S. Please share your comments below. Do you own an HMO? Have you considered converting your property? I would love to know your experiences and thoughts on this topic. I hope our paths cross again soon.