With Liverpool’s rental market booming and demand for affordable shared accommodation on the rise, there’s never been a better time for property investors to consider HMO conversions. But recent changes to licensing and local regulations mean that you need to plan wisely, and act fast.
In our second blog post of July 2025, the team at The Refurb Experts have put together this guide which explains why 2025 is still a good time to considering converting to an HMO in Liverpool, and what to look out for, and how you can stay ahead of legal requirements.
HMOs Are Still a Smart Property Investment in 2025
Despite stricter licensing rules, HMOs remain one of the highest-yielding asset types in the property sector. In cities like Liverpool, Wirral and Birkenhead, where student populations, working professionals, and housing demand are high, HMOs offer:
- Cash flow potential of 10–15% net yield
- Resilience to market fluctuations
- Multiple income streams from one asset
But… Only If Done Right!
The days of DIY HMO conversions are gone. Councils are cracking down hard on:
- Unlicensed properties
- Poor fire safety
- Overcrowded or poorly laid-out rooms
In 2025, getting it wrong can result in:
- Fines of up to £30,000 per offence
- Rent repayment orders
- Difficulty obtaining mortgages or refinancing
Local Authorities Getting Tough
In Liverpool, the selective licensing scheme has returned, and now covers most inner-city neighbourhoods. St Helens, Wirral, and Crosby are rolling out parallel initiatives, meaning landlords across the region must be HMO-ready or face enforcement.
This includes:
- Annual inspections
- Proof of EPC upgrades
- Risk assessments
- Licensing fees of £500–£850 per property
What to Consider Before Converting
To succeed in today’s market, landlords should work with specialists to:
- Design efficient layouts that meet minimum room sizes
- Add en-suites where possible to boost rents and reduce voids
- Implement fire compartmentation and certified alarm systems
- Future-proof the property for sustainability standards (EPC C rating or higher)
How Refurb Experts Can Help
We’ve helped dozens of landlords across Liverpool, Crosby, Aintree, Birkenhead, and St Helens (and everywhere in between!) turn single lets into fully compliant HMOs, often adding £300–£600 per month to rental income.
We handle everything:
- Feasibility studies and layout planning
- Planning and building regs if needed
- Fire safety upgrades and certification
- Project-managed refurb from start to finish
Let’s Talk About Your HMO Goals
If you’re considering converting to an HMO in Liverpool, Bootle, Birkenhead, Crosby, Aintree or any of the surrounding towns then drop us a line today. Our team can provide genuine value and advise you on HMO conversions in 2025 and beyond. We can help you navigate regulations, increase property value, and maximise your return.
Call for a Free Property Review by calling 0151 305 4821
Read more about our HMO services on our website, here.