Individuals looking to purchase homes, particularly in coastal towns, are being advised to approach properties located next to large Houses in Multiple Occupation (HMOs) with caution. A concern has been raised by a prospective buyer who is drawn to a spacious flat in a coastal town, but its proximity to a 20-bed HMO, formerly a care home, presents potential challenges.
Potential Issues and Considerations
Experts emphasize the importance of understanding the management and impact of such establishments. Issues commonly associated with HMOs include noise, parking difficulties, waste management, and a high turnover of residents, which can affect the quality of life for neighbors. Jonathan Stephens, a director at Smart Landlord, noted that a well-managed HMO with responsible tenants should have minimal impact, but poor management or high tenant turnover can lead to problems.
Prospective buyers are encouraged to visit the property at various times, including evenings and weekends, and to inspect the HMO's external maintenance. Speaking with current residents of the building, as well as neighboring property owners and local estate agents not involved with the HMO, can provide valuable insights into local perceptions and any existing issues.
Historical Context and Market Factors
The increase in HMOs, particularly in coastal towns, is often linked to the commercial viability of operating such properties where property values may be lower. Michael Zucker, a chartered surveyor, explained that many seaside resorts, which saw a decline in tourism in the 1970s, have had former hotels and guest houses converted into HMOs. Local authorities have sometimes encouraged this development to provide diverse housing options for various demographics, including lower-income individuals, essential workers, and students.
While a well-maintained HMO with professional tenants might have a minimal negative effect, the classification of a property as an HMO means it is likely to remain so. Future changes in ownership could potentially lead to a decline in maintenance standards or a shift in tenant demographics, which could negatively impact the marketability and value of adjacent properties. It is difficult to quantify the exact percentage of negative effect, as it depends on numerous factors, including the HMO's management and tenant profile.
Decision-Making for Buyers
Ultimately, the decision to proceed with purchasing a property near a large HMO involves weighing the benefits, such as acquiring a larger or better-quality home than otherwise affordable, against the potential drawbacks. Thorough research into the HMO's management, the surrounding area, and direct conversations with local stakeholders are crucial for making an informed decision. The local district council has stated intentions to be stricter on HMO-related issues like noise and parking, though it continues to approve new HMOs in the area. Despite over 100 local objections to the specific 20-bed HMO in question, it was granted approval, highlighting the complexities faced by local authorities and residents.