A new estimate of the cost of converting a property into a house in multiple occupation (HMO) puts it at over £82,000.
Research estimates that a conversion costs an average of £15,275 per bedroom across England.
This is based on an average HMO size of 5.37 bedrooms, so this equates to a total estimated conversion cost of £82,084.
London is the most expensive region, with an estimated conversion cost of £92,796, based on £18,007 per bedroom and an average of 5.15 bedrooms.
At the other end of the spectrum, the North East offers the lowest estimated conversion cost at £70,955, followed by the North West (£73,076) and East Midlands (£74,485).
However, the conversion itself represents only part of the initial investment required for landlords looking to enter the HMO market.
When factoring in the estimated purchase price of an eligible three or four-bedroom property, the analysis puts the average total cost of purchasing and converting a property into an HMO at a huge £531,882 across England.
This comprises an estimated property purchase price of £449,798 and an additional £82,084 in conversion costs.
London has the highest estimated total investment requirement at £957,105, followed by the South East at £630,333 and the East of England at £557,416.
The calculations have been undertaken by property management firm Rushbrook.
This article is taken from Landlord Today