Unlocking HMO Investment Potential: How the New Government Consultation Can Revolutionise This Strategy

Are you a property investor looking for the next big opportunity? Have you considered the potential of House in Multiple Occupation (HMO) properties? If not, now might be the perfect time to dive in. With the recent government consultation proposing changes to various permitted development rights, the landscape for HMO developers is poised to undergo a significant transformation, offering a host of exciting opportunities.

Let's delve into the key aspects of the consultation and how they can revolutionise your HMO investment strategy:?

Extra Space at the Back?

1. Small Single-Story Extension: No more neighbours getting involved! The proposal is to increase the extension potential for a semi-detached and terraced house from 3m to 4m, and a detached house from 4m to 5m without addressing the neighbours through the neighbourhood consultation scheme. This can add much needed communal space for licensing requirements, or even make the extension big enough for that extra bedroom that may have been tight before.

2. Double-Storey Extension: Increasing the allowable extension depth from 3m to 4m as well as allowing the roof part of the extension to increase in height to match the ridge

3. Wrap-around Extension: Previously we had to apply for planning permission if we wanted to attach a permitted rear and permitted side extension together. No more! Common-sense is prevailing and potentially allowing the wrap around extension – perfect for open plan communal spaces AND potential extra bedrooms.

4. Removing limitations: The 50% curtilage rule whereby you can only build on 50% of your available land, is set to be removed.

Extra Space in the Loft

1. Size Limitations: Removing the 40m3 and 50m3 size limitations completely!

2. Ridge Height: Allowing an increase in ridge height by 30cm to facilitate converting the loft into habitable space.

These are the most exciting changes as it will open up housing stock that previously just did not work by now being able to go into the loft to get 1-2 bedrooms in there.

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Appeasing Future Planning Requirements

The location of bike and bin storage can be a heated debate with planning officers if you have to apply for planning in Article 4 areas or for Sui Generis planning permission. With this new proposed PD right, you can put them at the front of your property and it will no longer be deemed contentious.

In conclusion, the proposed changes to permitted development rights outlined in the government consultation present a wealth of opportunities for aspiring HMO investors. By leveraging these revisions, developers can streamline the development process, unlock untapped potential within their properties, and ultimately, maximise returns on their investments. Whether you're a seasoned investor or just entering the property market, now is the time to consider the immense potential of HMO properties as a lucrative investment strategy.

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