The Renters’ Rights Bill has probably been dominating your group chats and property meets over the last few months.
And rightly so. It’s a big change.
But when all eyes are focused on one thing, others slip by unnoticed. There’s actually 4 things happening in the Kent HMO Market right now that HMO Investors and HMO Landlords need to be aware of, if they want to get to the end of the year with their head held high.
So if you’re managing rooms in Kent, planning a HMO Project or HMO Conversion, particularly a Large HMO, this one’s for you (and it’s not all doom and gloom, don’t worry…).
Change 1: Maidstone’s Draft SPD is a Backdoor Article 4. (Not smart of them in my view)
An SPD is a Supplementary Planning Document. It’s basically an extra set of rules the council can look at when making a decision on whether to grant planning permission for a Large HMO.
Now, why they would penalise good investors, bringing brand new properties to market in order to control anti-social behaviour in the old cr*ppy ones, is completely beyond me (sounds more like a licensing issue to me…), but there we have it. We’re expecting some changes in June.
For the detail on what’s changing, read this article.
But ultimately it’s this:
- New rules on density of HMO’s in a 100m radius
- Sandwiching rules, so there must be at least 3x residential properties in a line that cant be ‘sandwiched’ by HMOs
- Stricter controls on parking – 1 space per room on new applications (Yes…I know)
The thing to be aware of here is that this is a backdoor policy, rather than going the full Article 4 route.
It affects investors currently mid HMO project, or planning a HMO conversion, or looking to get into the HMO investing space.
If you’re new to the game or mid-project, this will affect you, so rather than be caught out by it, get in touch with us, book a call, and let’s start a dialogue and swap stories.
Change 2: A second bill in the Lords thats getting less attention, but packs a bigger punch (IMO)
Permitted development isn’t always the easiest to understand.
The rules are clear enough, but there’s always that nagging feeling that something may go wrong.
Size restrictions that always seem to end up making the loft or ground floor extension seem like an afterthought (which it is of course) but certainly not architecturally harmonious.
And then there’s the annoyance that it’s 2025, and ‘why can’t I add space to my WHOLE loft, rather than cutting it off short’ or ‘why wouldn’t they let me have a wraparound extension’. It seems to just not make sense.
Almost arbitrary.
And it is. The policy is decades old. And hasn’t been updated.
But, it looks like that’s changing for the better… finally.
The new proposal, sharking its way unseen by most through the Lords, in the shadow of its more ‘attention seeking’ big brother (the RRB), proposes to do away with basically all of the nonsense.
To be honest, when I read the draft bill, I was actually impressed. It’s like a wish list.
In short, if it makes it through the red tape in tact, it’s this (full article is in the pipeline):
- No more 40/50 cubic metre restrictions on lofts
- Wraparound GF extensions are now permitted
- Larger rear extensions before full planning is needed
- And a host of other smaller changes, the biggest of which is scrapping the 50% rule, meaning if you have a more ‘petite’ rear garden, you can still extend under PD without needing to keep 50% of the land free from ‘houses or sheds’.
This is particularly important for Kent’s HMO Investors that are planning on using PD to create more space for their HMO and do a Larger project.
More space, easier build with less red tape, and even more good quality housing stock on the market, with the large and lovely rooms that Medway and Maidstone Councils like… as do we! (Something we agree on there).
If you’re planning a conversion, or looking at an extension for your home, this will affect you. Wait a little bit for this to come in towards the end of the year (maybe), and you might get a lot more of what you want, for a lot less hassle.
Keep this link in your bookmarks.
And join the Kent HMO Alliance and I’ll keep you updated as things unfold:
HERE
Change 3: Kent Rents Are Rising. Like really rising…but only for some…
Okay, big one.
You got into property for passive income.
You do all of the work up front (buy refurbish refinance)
Give the property to an agent to manage it for you
They’ll keep you compliant and keep up to date with the rental market and make sure your investment is performing.
But here’s the thing…
If the rent of your room is £700:
- Your slice = £614
- Agent’s slice = £84 (10% + vat)
If the market rate for that room is now £800 (as an example), something interesting happens:
- Your slice = £704
- Agent’s slice = £96
It’s a £12 difference for the agent.
Risk of a void though, puts them back at zero, with an unhappy landlord.
The risk/reward just doesn’t add up.
Which is why (I think) we see such a big gap between the rooms we’re bringing to market, and the ones in existing HMOs.
Rents are rising.
That’s clear from the data, and from our rent roll (company average across Medway and Maidstone is a smidge south of £800, with the peak for an ensuite room at £875 in our portfolio (full deposit, not this ‘deposit insurance, or no deposit’ hack some landlords use… please don’t ever do that)).
So if YOUR rents aren’t in line with this, there’s a couple of options for you.
- Change agent. A change is as good as a rest
- Build in a bigger maintenance budget. We’re considering offering a service that invests 5% of your rent roll back into the property for you each year (you’ll barely notice it and it makes all the difference AND you’ll see a return on investment). Painting, decoration, tenant attracting upgrades to keep it from falling off of the map and into the market centre (around the £650 pcm in Maidstone).
- Take a good look at your SpareRoom advert. Most I look at are either poorly written, aggressive, or have terrible pictures. It attracts the tenants you were told not to rent to in your property course and can be fixed very easily with
- Better ad copy,
- Retaking nicely edited and staged pictures, room by room as they become available,
- And a friendly management system.
It’s your shop window, make sure it’s the best it can be, things will change.
As I’m writing this, (I must be in a good mood today) I’ll even review your ads for you.
Just book in a call HERE, we can go through it all together, and if there’s a problem, we can:
- Edit the copy for you
- Attend the property, stage it, take some more up to date pictures
- Or advise some minor tweaks to the room itself to make it pop in the marketing.
Let me know if that’s helpful. Let’s call it an ‘emergency rent review’.
Might be nothing… but it might be something too. Your call.
It’s all change in the HMO property space right now!
I totally get it.
Lots of moving parts for us Landlords, Investors and Agents right now.
But, you’re not alone.
Renters Rights Bill – will be what it will be. Just make sure you have good management in place for when all of the tenants start chancing their arm and running amuck in the chaos.
Maidstone SPD – Very navigable, we have an awesome team, including our superstar planning consultant. If you’re caught up in this one, reach out to us and we’ll be able to listen, understand and potentially advise.
Permitted development changes – A bit of a godsend to be honest. Needed to happen. Fingers crossed it stays unmolested and actually helps you.
Rents increasing – Market rents mean nothing to individual landlords if the rates they’re getting on their rooms don’t increase too. It’s like having the only property on the street that’s not going up in value! Simple fix, but requires a bit of engagement… but doesn’t necessarily need to be you!
Book in a call HERE or join the Kent HMO Alliance HERE if you want all the latest info and some 1:1 time with Kent’s most award-nominated HMO Investment Company.
