HMO · Property AnalysisA 2-bedroom terraced house in Chard, Somerset (TA20 1EA). This property is a compact purchase with potential for conversion into a 3-bedroom professional HMO.
This property is a modest 2-bed terraced house located in Chard. It is suitable for a small HMO conversion if a 3rd bedroom can be created by repurposing the living room. However, given the limited total floor area (51.3 sqm), the resulting rooms will be small and amenity space will be tight. This project is high risk due to space constraints but offers a strong yield if managed effectively as a smaller HMO unit.
Verify with Somerset Council regarding specific HMO licensing requirements for < 5 occupants as councils often apply Additional Licensing.
Fire Safety: FD30 Fire doors x 5 - Cost: £1500; Door Closers x 5 - Cost: £200; Intumescent strips - Cost: £100; Emergency lights - Cost: £300; Fire extinguisher/blanket - Cost: £150.
Kitchen: Oven/Hob - Cost: £600; Extractor fan - Cost: £150; Integrated fridge/freezer x 2 - Cost: £800; Washer/Dryer - Cost: £500; Kitchen cabinets - Cost: £1000.
General/Rooms: Double bed frames x 3 - Cost: £600; Mattresses x 3 - Cost: £600; Wardrobes x 3 - Cost: £450; Desks/Chairs x 3 - Cost: £450; Blackout curtains - Cost: £300; Smart locks - Cost: £300; Bedside lamps x 3 - Cost: £150.
Total cost: £8250 (excluding installation/labour)
Weeks: 6 || Months: 1.5
High potential for a compact professional HMO. Negotiation is key—use the dated condition to drive the price down, as the total square footage restricts the upside.
The Chard market supports room lets for professionals. Converting this 2-bed to a 3-bed HMO maximizes the yield significantly. However, you must prioritize the communal space in the kitchen, as professional tenants will not tolerate a cramped living environment. With a total capital requirement of £65,100 and a net annual profit of over £12,000, the ROCE is strong. Proceed only if the council confirms no Article 4 restrictions that block C4 change of use.