This property showcases our planning strategy of converting a rundown property into multiple flats then convert to a high standard 8-bedroom all en-suite HMO.

Our goal for the property was to develop a large Houses in Multiple Occupation (HMOs).

Through research on the planning portal, we discovered that Merton borough has certain restrictions on large HMOs. Although the house was spacious enough for a 12-person HMO, applying directly for that configuration would likely have resulted in refusal.

To overcome the borough restrictions , we took a different approach.

• First, we converted this substantial house into two flats—a straightforward process.
• Then, utilizing Permitted Development (PD) rights, we transformed each flat into a C4 HMO.

By adopting this strategy instead of pursuing approval for a large 12-person HMO directly, we bypassed the complexities associated with extensive planning applications. We achieved the same desired outcome while simplifying the process.

We have done the planning work during the 5-month delayed completion. By the time we purchased the property in April 2021, all the planning had been completed, enabling us to commence construction immediately.

The property was purchased for £550,000 and approximately £250,000 was invested in refurbishment, planning expenses, legal fees and other miscellaneous costs. The total amount invested came to around £800,000.

In May 2022, we successfully sold the property for £1,300,000—an impressive profit of £500,000 within just over 12 months.