HMO feasibility appraisals

An HMO feasibility appraisal is a written assessment of whether a house can work as an HMO before you buy it. It covers the likely room count against legal minimum sizes and the council's amenity standards, the planning route, the licensing position, building regulations and fire implications, a guide build cost range and the main risks. It is not a valuation or financial advice.

The figures for an HMO only mean something once you know how many people can lawfully live in the house. That depends on room sizes, kitchen and bathroom space, planning use, licensing and fire safety, and each one can cut the room count you were hoping for. An appraisal answers those questions before you commit. You get a written report you can share with your solicitor, broker or adviser, so your own figures rest on facts about the house.

  • Licence and certificates reviewed first
  • Build, compliance and lettings in one team
  • Written terms for each property

Get a guide price

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Tell us about the property. We reply within one working day.

Floor plan, calculator, notes and keys laid out for a property appraisal

How many rooms can the house have?

We measure every room and test it against the room size conditions that apply to every licensed HMO in England:

  • 6.51 m² for one person aged over 10;
  • 10.22 m² for two people aged over 10;
  • 4.64 m² for one child under 10;
  • rooms under 4.64 m² cannot be used for sleeping;
  • floor under a ceiling lower than 1.5 m does not count.

These are national minimums. Your council's amenity standards add requirements for kitchens, bathrooms and toilets, and sometimes larger bedrooms or shared living space, depending on the number of occupiers. We apply the standards for the address and show which rooms pass, which fail and what layout changes could help. Our HMO room sizes guide explains the rules in more detail.

Which planning route applies?

Planning depends on how many people will live in the house:

  • Three to six people (use class C4). Changing a family house (C3) to a small HMO is permitted development, so no planning application is needed, unless an Article 4 direction removes that right.
  • Article 4 areas. Where a direction covers the address, planning permission is needed. A direction does not ban HMOs, but applications can be refused.
  • Seven or more people. A large HMO is sui generis and always needs planning permission.

We check the current lawful use, any Article 4 direction and the council's HMO planning policies, then set out the route, what an application would need and the main planning risks. If the house is already used as an HMO, we look at the evidence of that use. Our guide to HMO planning and Article 4 covers the background.

What licensing, building regulations and fire work will be needed?

Licensing. A house with five or more people in two or more households needs a mandatory licence. Your council may also run additional licensing for smaller HMOs, or selective licensing for other rented homes. The appraisal states which schemes cover the address and what the licence conditions are likely to require.

Building regulations. A conversion often requires building regulations approval, for example where it creates bedsit-style rooms for living and sleeping in, or changes how many there are. Fire safety and sound insulation requirements may then apply.

Fire safety. Fire doors (typically FD30 or FD30S with self-closers) and a mains-wired interlinked alarm system are commonly required, depending on the property's layout, size and fire risk assessment, and the local council's HMO standards. For a three-storey shared house, the LACORS guidance many councils use as a benchmark treats a 30-minute protected escape route as the ideal.

We flag the items with the biggest effect on cost or room count. You can check any address with our HMO licensing checker.

What will the conversion cost and what are the risks?

We price the works from our survey using typical Midlands guide ranges, including VAT where it applies. For building work per lettable room, these are £1,800 to £3,500 for light works, £5,500 to £9,000 for a standard conversion and £9,000 to £14,000 for a full strip-out. En-suites, kitchens, bathrooms, fire doors and alarms have their own guide ranges where needed. The appraisal gives a range for the house, confirmed by a fixed written quote if you go ahead. Council fees are extra.

We also list the risks that could change the picture: a planning refusal, a room that fails on size, structural issues, a licence condition that limits occupancy, or an existing use that is hard to evidence.

An appraisal is not a valuation and not financial advice. Put your own rent, finance and cost assumptions into our HMO yield calculator, and take regulated advice on finance and tax.

What's included

  • Every room measured against national minimum sizes
  • Council amenity standards applied to kitchens and bathrooms
  • Planning route: C4, sui generis or Article 4
  • Licensing position for the address
  • Building regulations and fire safety implications
  • Guide build cost range and key risks listed

What does it cost?

Appraisals are quoted per property, depending on the size of the house and how far you want the work to go. We confirm the price and what the report will cover in writing before we start.

If you go ahead with a conversion, the build is quoted separately as a fixed written quote after a survey. You can start with our quote form, or ask us about a property you are considering through our contact page.

How it works

  1. Share your brief

    Tell us the area, budget range and the kind of HMO you have in mind.

  2. Checks before figures

    Planning, Article 4, licensing and room count are tested first.

  3. Appraisal and costs

    We set out the layout, the build cost range and the risks in writing.

  4. Deliver or step back

    Use us for the build and management, or take the appraisal and run it yourself.

Questions about HMO feasibility appraisals

Is an HMO appraisal the same as a valuation?

No. A valuation is a formal opinion of what a property is worth, carried out by a qualified valuer, often for a lender. Our appraisal looks at whether the house can work as an HMO and what it would take, not what it is worth.

Can you appraise a house before I make an offer?

Yes, and that is when it is most useful. With the seller's or agent's agreement we visit, measure the rooms and check planning and licensing for the address, so you know the likely room count and works before you commit.

What if the appraisal shows fewer rooms than I expected?

The report shows which rooms fall short and why, and whether a different layout, an extension or a loft conversion could change that, subject to planning and building regulations. Some houses work better as a smaller HMO, and some are better left as family homes.

Does the appraisal include rent figures?

It can include comparable room lets we have checked for that property, presented as information rather than a forecast. We don't give yields or returns. You can test your own assumptions with our yield calculator.

Can I share the appraisal with my lender or broker?

Yes. It sets out the planning, licensing, room count and works cost position, which brokers and lenders often ask about. Your lender will still carry out its own valuation before lending.

Planning an HMO in the Midlands?

Book a free survey. We measure every room, check the licensing and planning position, and give you a fixed written quote.

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