Practicality
Before this can be answered you need to ask your self if the existing building be successfully converted to provide the desired conversion? This relates to the practicalities of clear division and access and further provision of all services particularly sanitary. These changes come under both planning and building regulations as the units are effectively separate and must be suitable for use as such. Below are some of the issues and procedures likely to be encountered.
Planning
Planning law in respect of multi-occupation is contained in the following legislation:
Town and Country Planning Act 1990 (later referred to as “The Act”): Section 55 of the Act defines the subdivision of a dwelling into two or more separate dwellings as a material change of use which requires planning permission Category C3 to C4.
However since October 2010 the conversion of a single dwelling into two separate units was deemed 'Permitted development' for between 3 and 6 people therefore not requiring a change of use application under the planning act. Notwithstanding this any property that is listed or within a conservation area will have additional restrictions.
Be cautious though, councils can and are amending this with an 'Article 4 direction' removing such permitted development rights as they impose their own local development policy. These are very much dependant on density and the impact on existing communities some authorities have already made this mandatory across the board to exert more control over the housing stock in the light of new government legislation on housing allowances.
Where planning is required this will require submission of details such as plans as existing, plans and details as proposed and any effect this conversion may have on the access to the property such as additional parking and waste collection. If the alterations affect the external elevations of a property, for example additional doors or windows then this information will all be required to be included in the application. This is more relevant on listed buildings and within conservation areas. In the eyes of the law a house converted into flats remains a house and so converting back should not require further planning approval. With ever changing legislation and local authorities drafting their own revisions It is always a good idea to discuss your proposals with the local authority to ensure compliance.
HMO's and licensing.
The Housing Health and Safety Rating system (HHSRS) provides a guide to local authorities to asses such applications which basically examines Fire safety,Electrical and gas safety, access and security and the overall property standard. If the let is to be furnished then this will also come under scrutiny in terms of fire regulations acts 1988 and 1993 for fabrics and upholstery.
The laws relating to HMO's (house in multiple occupation) have become complex under the 2004 housing act and this is a topic all on its own. It is worth noting that not all local authorities adopt the same standards when assessing such changes. Generally if less than 5 persons and not 3 storey the property will not need to be licensed but will be considered an HMO, Some authorities reduce this to 4 occupants or more.
Full consultation with the local authority is critical to avoid falling on the wrong side of the law. Failure to ascertain the correct licence category can result in substantial fines and the loss of power of eviction under Section 21 of the housing act.
Building Regulations
Once planning is obtained (and even if permitted under the planning act) any alterations to provide separation of units will require approval under the building regulations.This deals with more specific elements of the conversion, normally with this type of situation they tend to fall under structural alterations Part A, fire protection of doors, floors and means of escape and any centralised alarm and emergency lighting system under Part B. There is also the question of sound transmission to be be considered under Part E (resistance to the passage of sound) to ensure the reasonable enjoyment of the occupants. In some circumstances, usually semi detached or terraced properties the alterations may come under the Party wall Act.
Services
If proposing entirely self contained units within an existing building the supply of services (gas ,water, electric, sanitary etc) will need to be delivered separately not only for the purpose of control on usage but for the legal issue of bills to the occupant. Again there are strict rules on the route and installation of such services and a survey by a qualified engineer will determine the practicality of this. Such installations will need to be installed by approved installers capable of issuing the appropriate test certificates on completion. With house share situations or in some HMO's this can be less of a problem as there is normally an arrangement to split the bills in equal proportion or at a rate based on the main user without the need to amend the meter locations. Again an assessment would need to be done by the local authority. In all cases test certificates are required by law on an annual basis.
Income/yield
Higher yields can be obtained by this type of conversion. However the initial cost to achieve the alterations needs to be taken into consideration against the likely rental increase over the longer term. These costs can vary greatly depending on the type and age of the building and the complexity in providing the alterations and compliance required by law