If you’re wondering how much an HMO conversion in Liverpool may cost in 2025, we have put together this handy reference guide that might be a useful starting point for you.
HMO (Houses of Multiple Occupancy) conversions are a popular strategy for landlords in Liverpool looking to maximise their investments in 2025. Given the high demand for rentals in the area, HMOs offer better returns and quicker yields compared to standard rental arrangements. However, some landlords tend to underestimate the true costs associated with converting a property into an HMO. From ensuring fire safety compliance and moving walls to upgrading kitchens and obtaining licensing, proper budgeting is crucial to avoid unforeseen expenses.
We have lots of experience in helping landlords across Liverpool and Merseyside carry out HMO conversions and our latest blog post explores the approximate costs that landlords should budget for.
This blog has been written as an indicative guide and every conversion is different, but it will help landlords to understand the costs associated with undergoing an HMO conversion project. If you’re thinking about carrying out an HMO conversion and would like a detailed price estimate, please contact us today and we will be pleased to help you further.
Common Costs To Consider With HMO Conversions in Liverpool
Structural changes to a property you need to consider
- Building partition walls/stud walls to create additional bedrooms
- Modifying staircases or converting lofts
- Addressing roof repairs or reinforcement
Estimated price range: £5,000 – £20,000 depending on the size of your property and scope of work needed.
Fire safety compliance
- Installing fire doors with intumescent strips
- Fitting smoke and heat detectors and emergency lighting
- Modifying escape routes
Estimated price range: £2,500 – £10,000 depending on the size of the property.
Plumbing and electrical considerations
- Incorporating multiple cookers, sinks, and workspaces
- Providing a minumum of 1 bathroom for every 4 tenants
- Considering layout of more sockets and charging points
- For high-end conversions, considering EV charging points
Estimated budget: £6,000 – £16,000 depending on the final spec you’d like to provide
Licensing, Planning & Professional Fees
- Obtaining a Liverpool HMO license: around £600+
- Covering planning application fees if a change of use is necessary
- Engaging in architectural drawings or acquiring building regulations approvals
Estimated budget: £1,000 – £3,000
Insulation & Energy Efficiency (EPC Compliance)
- Installing double glazing, loft insulation, and efficient boilers
Estimated budget: £2,000 – £6,000
Decoration & Furnishing
- Flooring, paintwork, and durable and long-lasting finishes
- Furnishing your HMO with beds, wardrobes, desks, and communal area furniture
Estimated budget: £3,000 – £8,000
Contingency Fund
Allowing for unexpected structural issues, damp problems, or additional council requirements. It is advisable to allocate at least 10–15% extra for unforeseen costs.
Additional Expenses Overlooked by Many Landlords
There are a number of factors with an HMO that are often overlooked, which include:
- Regular HMO inspections by the council
- Annual safety certificates (gas, EICR, PAT testing)
- Increased wear and tear in shared spaces
- Higher insurance premiums for landlords
Return on Investment: Why an HMO Could Work For You
Despite the higher initial costs, HMOs have the potential to significantly increase rental income compared to single lets. For instance:
- Monthly income from a standard 3-bed single let in Liverpool: £1,000
- Monthly income from a 5-bed HMO at £500 per room: £2,500
Converting to an HMO in Liverpool can significantly boost your rental earnings, but only if you plan your budget realistically. The Refurb Experts offer comprehensive refurbishment packages to assist landlords in achieving compliance and profitability without unnecessary stress.Contact us today for a no-obligation chat.
Let’s Talk About Your HMO Project
We hope this guide has given you some insight if you’re wondering how much an HMo conversion in Liverpool may cost, and answered a few of your most pressing questions.
If you’re interested in having a chat about how we might be able to help you with an HMO conversion project then feel free to drop us a line today. We have considerable experience in carrying out HMO conversions across Liverpool and Merseyside and would be pleased to hear from landlords thinking of carrying out a new HMO conversion project.
Call for a Free Property Review by calling 0151 305 4821
Read more about our HMO services on our website, here.