HMOs (House in Multiple Occupation) are a very popular form of property investment. They allow landlords to split up homes into separate properties, seeing residents share various facilities such as a kitchen, hallways and stairs. In this way the owner can make a higher income than they would renting the property as a whole. Tenants also benefit from lower bills.
In 2016 Bexley became one of the hottest property markets in London and the whole of the UK. It achieved this because it is one of the most affordable areas for homes in the capital. The South of the Thames has always had property prices lower than the North. Similarly the East End offers more for your money than the West. It is therefore no surprise that one of the most easterly Boroughs has such great prices.
With the popularity comes rising demand for properties. There are prospective buyers looking for all kinds of homes, from flats to family homes. Tenants are also searching for a wide array of properties, including the aforementioned ones and rooms in HMOs too. This means there are plenty of opportunities for people to make a good income from property investment in Bexley.
Investors looking at purchasing a larger property to turn it into a HMO need to be aware of the rules and ensure they comply with them. This is particularly important in Bexley following a number of rows over HMOs.
Last year the Council revealed plans to change the requirements for transforming a property into a House in Multiple Occupation. Currently it can be done without needing planning permission. The plan is to change this so that permission must be obtained before the change to an HMO can be made. That way the local authority can ensure a property is suitable for this kind of habitation.
A consultation on the planned change was held last year and ended on November 4th. If progress is made and the changes to planning permission requirements are agreed on they could come into force in September 2017.
If you are considering property investment in Bexley and are looking specifically at turning the building into a HMO you should be aware of these prospective changes. They could have a big impact on your plans for the future.