A HMO conversion can be a lucrative move for many landlords. It can massively improve the rental income they can get from properties. However, there are lots of rules. They can differ by location too, especially in London. What we want to do is talk about recent changes to the requirements in one borough. Then, if you need property management in Merton, you can contact us.
Small HMOs
Earlier this year Merton Council announced plans to change the rules on creating small HMOs. They did this after claiming to receive a huge number of complaints about the standard of some of these properties.
A HMO is a home that has been split into separate rooms but with communal facilities like the kitchen and bathroom. These properties tend to become home to multiple tenants from different households.
Previously there were no rules governing smaller HMOs in Merton. In fact, property owners could convert buildings thanks to permitted development rights. As a result, they didn’t even need planning permission to make the changes.
The issue here is the lack of governance opened the door for people to create HMOs where rooms are too small, properties are overcrowded, and facilities are inadequate. It also meant there were no rules for managing the buildings. This can lead to various issues, including anti-social behaviour and poor tenant welfare. As one of the top providers of property management in Merton, we can see how there can be big problems.
Change
Merton Council made the decision to make changes with an Article 4 Direction. What this can do is remove the permitted development rights. So, property owners would need to get planning permission for small HMOs.
The new rules cover seven wards in the Borough. These are: Colliers Wood, Cricket Green, Figge’s Marsh, Graveney, Lavender Fields, Longthornton, and Pollards Hill.
Before announcing the changes, the council had a consultation period. The reaction to the move was split. Tenants and residents gave their backing to the restrictions, with 81% supporting them. However, landlords weren’t as happy, with more than 50% voting against.
The Council hopes the change will have a positive impact on housing standards in the borough. It could do this in a number of ways, including demanding that small HMOs meet minimum space requirements and are managed properly.
Making it harder to convert single family homes could also protect these vital properties. There is always more demand in London for housing with three or four bedrooms for families. However, they are harder to build because of space limits. Some existing ones also disappear due to conversions into flats and HMOs.
Do you need property management in Merton?
Managing assets effectively requires care and a flexible service. After all, every portfolio is different. We take this to heart at Finefair Ltd and make sure we cater for each client’s needs effectively. Whether you have one property, dozens, or more, we can help. We even deal with large and small HMOs.
So, get in touch with us and find out how our property management in Merton and other parts of London can work for you. You can even choose guaranteed rent for assets.
