BDHomes Projects

6-Bedroom HMO - Medway

Thu, 23 Jan 2025 00:11:48 GMT

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Northcote Road, Medway

Purchase Price: £250,000
Revaluation: £390,000
Gross Annual Rent: £52 ,500
Gross Yield: 14.0%
ROCE: 30.46%

Challenges

Two flats in a terraced house transformed into an HMO, including a basement conversion:

Planning Restrictions : Required full planning approval for the conversion from C3 ( two Flats) to C4 (HMO single property).
Basement conversion : Creating a liveable room in the basement that complies with building control regulation/standards.
Basement Damp Issue : Tanking of the basement and creating of light well was required by building control.
Increased Costs : Tanking, soundproofing, and special insulation of the basement due to damp issues and building control SAP complies.
Expert Consultations : Needed an architect and SAP assessor experienced in basement conversion.
Time : The building control requirements significantly extends development times, increasing costs.
Valuation Risk : Possibility of undervaluation due to insufficient comparable properties in the area.

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Solution

Engaged an experienced architect to navigate the development restrictions effectively.

Planning Restrictions: Postpone planning approval for the conversion from C3 ( two Flats) to C4 (HMO single property) until after refinance.
Basement conversion: Employed the service of an architect and followed his plan to create a liveable room in the basement that complies with building control.
Basement Damp Issue : Our in-house team tanked the internal area of the basement using KA Slurry and Bitumen, and created a 1.8m deep light well.
Increased Costs: Unavoidable cost - soundproofed and insulated the basement in-line with building control requirements.
Expert Consultations: Commissioned an architect and SAP assessor experienced in basement conversion.
Time: Worked with building control to mitigate any delay while complying with their request swiftly.
Valuation Risk: Developed the property a great standard that would attract high valuation.

After Images

Results

A quality 6-bedroom HMO optimising cash flow & quality standards.

Below are some selected pictures showcasing the tasks we executed to create this wonderful product.

At bdHomesUK, we’re always looking for dynamic partners to collaborate with on exciting property development projects. Whether you're an investor, contractor, or industry expert, we offer the opportunity to work together on high-quality co-living spaces that are set to generate strong returns.

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Savills Predicts Prime Housing Market Rebound Despite 2025 Hurdles

Sat, 07 Dec 2024 23:40:37 GMT

The latest forecast from Savills offers insights into the future of the UK housing market, with a focus on prime properties. While short-term challenges, including tax reforms and economic adjustments, are expected to affect property prices, the overall outlook remains optimistic for long-term growth in key markets.

2025 Setbacks: Navigating Tax Changes and Economic Pressures

Savills anticipates a 4% drop in prime central London property prices in 2025, driven by changes such as the abolition of non-dom status and increased tax burdens. These factors are expected to cool demand temporarily. However, the resilience of needs-based buyers and long-term investors may mitigate some of these effects.

Regional prime markets face fewer direct impacts from tax changes but may experience slower growth due to general economic uncertainty. Nevertheless, these areas remain attractive for buyers priced out of London or those seeking more space.

Long-Term Growth Potential in Prime Markets

Beyond 2025, the housing market is projected to recover steadily. Savills forecasts a 10% rise in prime central London prices over the next five years, supported by recovering investor confidence and the unique appeal of London’s luxury properties.

Regional prime markets are set to outperform London in terms of growth, with an 18.2% increase predicted by 2029. These markets benefit from more affordable property options, growing interest in suburban living, and lower mortgage rates, which are expected to stabilize after the current economic turmoil. Coastal and countryside properties, while appealing for second homes, may remain price-sensitive due to fluctuating demand.

Conclusion: Challenges and Opportunities Ahead

Savills’ forecast underscores both the challenges and opportunities within the UK housing market. While immediate factors like tax reforms pose hurdles, the long-term resilience of prime properties in London and regional markets points to a brighter future. Investors and buyers should prepare for short-term fluctuations but remain confident in the market’s recovery potential.

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6-Bedroom HMO - London

Fri, 06 Dec 2024 21:19:48 GMT

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Rosebank Walk, London

Purchase Price: £425,000
Revaluation: £490,000
Gross Annual Rent: £ 53,136
Gross Yield: 10.84%
ROCE: 16.45%

Challenges

Article 4 area project with the following property development restrictions:

Planning Restrictions : Required full planning approval for the conversion from C3 to C4.
Article 4 Area : Constraints on internal and external alteration due the article 4 restriction.
Increased Costs : Higher expenses for compliance with the article 4 and HMO requirements; Bin storage, transport, etc.
Expert Consultations : Needed an architect experienced in HMO development within article 4 areas.
Time : The removal of Permitted Development (PD) rights significantly extends planning approval wait times, increasing costs.
Valuation Risk : Possibility of undervaluation due to insufficient comparable properties in the area.

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Solution

Engaged an experienced architect to navigate the development restrictions effectively.

Planning Restrictions: Planning approval was issued for the conversion from C3 to C4.
Article 4 Area: The planning approval allow for internal and external alteration required to create a excellent cashflow asset.
Increased Costs: Additional expenses for compliance with Article 4 and HMO standards, including bin storage, transport requirements, etc.
Expert Consultations: A n architect experienced in HMO development within article 4 areas was engaged.
Time: Time was a challenge due to the article 4 restriction
Valuation Risk: The property was undervalued due to insufficient comparable properties in the area.

After Images

Results

A quality 6-bedroom HMO delivered within budget, optimising cash flow & standards.

Below are some selected pictures showcasing the tasks we executed to create this wonderful product.

Be a partner in something great.

Contact us today to discover how we can collaborate on our next project!

5-Bedroom All Ensuite HMO - Medway

Tue, 05 Nov 2024 07:19:08 GMT

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King Street, Medway

Purchase Price: £277,000
Revaluation: £390,000
Gross Annual Rent: £50,340
Gross Yield: 12.91%
ROCE: 23.57%

Challenges

Conservation area project with the following property development restrictions:

Planning Restrictions : Required Certificate of Lawful Development for conversion from C3 to C4 and full planning approval for any external work.
Design Limitations : Constraints on internal architectural styles and features.
Increased Costs : Higher expenses for compliance with conservation and HMO standards.
Expert Consultations : Need for an architect experienced in HMO designs.
Drain Redesign : Need to redesign the entire internal drains to accommodation the additional 4 en-suites.
Limited Modernisation : Restrictions on adding modern features like double glazing, solar panels, or extensions.
Fines or Penalties : Risks of non-compliance leading to legal penalties.
Valuation Risk : Potential for undervaluation due to surrounding factors.

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Solution

Engaged an experienced architect to navigate the development restrictions effectively:

Planning Restrictions : Gained Certificate of Lawful Development for conversion from C3 to C4 and no other planning approval required.
Design Limitations : Even with conservation area limitation, we were still able to make structural changes that was required for the HMO development.
Increased Costs : The higher expenses for compliance with conservation and HMO standards was unavoidable.
Drain Redesign : Successfully achieved by our internal development team, with all rooms featuring their own ensuite, except for one with an off-suite.
Fines or Penalties : No risk of fines or legal penalties as all rules were fully complied with.
Valuation Risk : Managed effectively despite lack of control over surrounding factors.

After Images

Results

All-ensuite 5-bedroom HMO delivered within budget, optimising cash flow & standards.

Below are some selected pictures showcasing the tasks we executed to create this wonderful product.

Join us and be part of something great.

Contact us today to learn more about how we can partner on our next project!