November 5, 2020
With the relaxation of planning regulations making it easier to extend, there has never been a better time to do it. You can extend your property by as much as adding on a two-storey extension without going through the lengthy permission process. This could allow you to extend current family homes, split properties into two dwellings, or even move into the world of HMO.
With HMO properties having proved to bring in more profit than any other type of buy-to-let, it makes sense to expand where you can. For current HMO landlords, you can now add more rooms to your properties under the fast-track planning process.
The demand for HMO’s is high. The UK’s population is continuing to grow. The Office for National Statistics reported that England’s population alone grew by 361,200 in 2019 (up 0.5% from mid-2018). Many people who have a need or desire to live in London are simply not able to afford anything larger than a room in a shared house. HMO accommodation is the only option for them and the increase in the demand has been the main driver in this market.
According to research from Spareroom.co.uk, only 31% of adults in the UK living in shared accommodation could afford to rent on their own if they wanted, and only 12% could afford to buy a property. Renting properties in London takes up around 50% of tenants’ monthly income, which is why sharing has been a much more viable option, with many younger people preferring the flexibility of shared accommodation.
The continued increase in demand for shared housing makes it the perfect time to take advantage of the relaxed planning laws and extend any HMO properties that you may have. The opportunity is there, and if you need finance, we can help.
If you have more than 8 rooms in your HMO property already but still have the space to extend you will have problems with getting applications approved with many lenders. The high street won’t generally lend on a HMO property that has over 8 rooms.
Specialist finance distributors such as Enterprise Finance are able to secure funding to allow your properties to be extended and converted into a HMO. Enterprise Finance has access to a pool of specialist lenders that do not have a limit on HMO rooms, allowing you to get the most out of the space you create.
For more information about Second Charge mortgages, drop us a message or call us on 020 8731 5333.