This project in Bury in Greater Manchester is now complete and ready for lettings as a 5 Bed HMO with 4 rooms of an extra-large size and have kitchenettes. This project is one that didn’t go to plan initially due to a challenge with planning and this really shows how important it is to have the fall-back positions in place and planned for. The original plan for this property was for it to be an 8 Bed HMO with a large dormer / loft conversion. However due to Bury’s new HMO policy which was actually only in draft form during the application the 8-bed proposal would not get approved. Bury council were also in the process of voting and brining in an Article 4 direction which would remove the permitted development rights to convert this terrace property into a 5/6 bed HMO. The council did vote to bring in the Article 4 direction however this yet to be implemented with the current timeframe of actual implementation a bit unknown. The fall-back positions were then to move forward with a 6 bed HMO (which still required a loft / dormer conversion) or a 5 bed HMO (with very generously sized rooms & communal space) using the existing footprint of the building so the build costs were much lower. Even though it would result in less rooms & slightly less cash flow the 5-bed option was the better option as it provided a better HMO for tenants the ROI (return on investment) was a higher percentage. Always have a contingency and always have a fall back position especially when planning is involved!

Posted by Tim Witt at 2026-06-09 09:38:46 UTC