The Complete HMO Feasibility Checklist

HMO conversions can look straightforward at the viewing stage.

But the difference between a smooth project and a stressful one usually comes down to what gets checked early — before layout decisions are locked in, before builders quote, and before money is committed.

This is why feasibility isn’t a “nice to have”. It’s the first step to protecting occupancy, cost, and timeline.

Why Do a Feasibility Check Before You Buy?

The goal is simple: identify the primary risks early, before committing to detailed design work, surveys, or purchase.

1) Site Analysis (Location & Surroundings)

Before anything else, it’s worth checking the basics around the property:

• distance to bus links

• distance to train links

• proximity to supermarkets

• access to a town centre / key amenities
  

These factors help confirm whether the location supports tenant demand and the type of HMO you’re planning.

2) Planning Factors (The Early Red Flags)

Planning constraints can change what’s possible, what’s permitted, and how long your project will take.

Key feasibility checks include:

• Is the property in a conservation area? This can restrict permitted development rights.

• Is there an Article 4 Direction in place? This can remove the permitted development right to convert C3 to C4.

• Is the property in a flood risk area? This may increase risk and impact design decisions.

• Is the property listed? Listed buildings remove permitted development rights and introduce additional restrictions.

• Is the current use class C3 (Dwelling)? This is required for conversion under permitted development from C3 to C4.

• Are there existing planning permissions or extensions? These can affect what future permitted development is possible.

3) Spatial Feasibility (Can the Property Actually Work as a 6-Bed?)

A property might feel “big enough” — but that doesn’t always mean it works as a compliant, rentable, properly planned HMO.

Key questions include:

• Are floor plans available online?

• Is a 6-bed conversion feasible in the existing building?

• Would a permitted development rear extension improve feasibility?

• Is there loft conversion potential?

• Is a dormer option realistic (where relevant)?

• Is en-suite potential achievable in each room?
  

Important note: early spatial assessments are often based on estate agent plans, which may be inaccurate until a measured survey is completed.

4) HMO Licensing (Local Rules You Can’t Assume)

HMO licensing standards are local authority specific — and can directly affect occupancy, room numbers, and layout decisions.

Feasibility checks should include:

• Is there an over-concentration policy in the area?

• Local authority minimum communal space standard (for 6 occupants)

• Local authority minimum bedroom size standards

• Minimum bathrooms / WCs required

• Outdoor amenity space requirements (if applicable)

• Waste storage provision requirements
  

This is one of the most common reasons developers lose profit later than they should — because the layout is designed before licensing standards are properly checked.

Key Takeaway

A proper feasibility review focuses on three core risk areas:

• Planning / statutory constraints

• Spatial feasibility

• Local licensing requirements
  

This gives early clarity on what’s viable, what’s risky, and what needs deeper investigation before committing.

Next Steps (After Feasibility)

Once feasibility confirms the project has strong potential, the next steps are typically:

1) Site Visit & Measured Survey Accurate dimensions replace online plans and allow a compliant layout to be developed.

2) Proposed Scheme A proposed layout is produced, reviewed, and finalised.

3) Detailed Design & Compliance Package Technical / building regulations drawings are produced for contractors to quote and build accurately.

Need an early feasibility check before you buy?

👉 View our HMO pre-acquisition services. 👉 If you’re working on HMO conversions regularly, let’s have a chat — book a call.