HMO Refurbishments in 2026
April 9, 2026
The HMO market in 2026 still offers strong opportunity, but it no longer rewards poor planning or rushed refurbishments.
Across the sector, demand for quality shared accommodation remains strong. Rising living costs continue to push many tenants towards room-by-room living rather than self-contained flats. At the same time, compliance standards, tenant expectations and long-term cost control are becoming more important than ever. As a result, landlords and investors need to think carefully about how they refurbish, furnish and manage HMOs if they want lasting success.
At Foot Forward Property Investments, we have completed end-to-end HMO refurbishments and management for over 34 years. During that time, we have delivered more than 450 HMO refurbishments, giving us deep practical knowledge of what works, what fails and what creates long-term value.
One pattern keeps coming up in today’s market. Many people complete a short HMO investment course, learn the theory, then decide to handle a refurbishment themselves as cheaply as possible. On the surface, that approach can seem sensible. In reality, it often leads to poor layouts, weak finishes, compliance issues and disappointing long-term performance.
Trying to do an HMO refurbishment on the cheap is a recipe for failure.
Why cheap HMO refurbishments usually go wrong
A successful HMO is not just a property with extra bedrooms. It is a carefully planned, compliant, durable asset that needs to work for tenants and for the owner over many years.
Cut-price refurbishments tend to focus on squeezing in the maximum number of rooms for the minimum spend. That mindset creates the wrong result almost every time. Small cramped bedrooms, poor circulation space, limited storage, low-grade fittings and weak communal areas may reduce upfront costs, but they often damage tenant appeal and increase maintenance issues later.
Too many investors still try to create HMOs with shared bathrooms and tiny rooms simply because it is the cheapest option and the layout technically fits the property. That is the wrong way to approach the asset. If a room feels cramped, awkward or below modern tenant expectations, the design has already failed regardless of whether it looked acceptable on paper.
A good HMO refurbishment must be compliant from the outset. It also needs to reach a high standard. That does not mean boutique luxury. It means quality room sizes, well-designed ensuites, practical kitchens, durable flooring, sensible extensions where appropriate and fittings that stand up to daily use.
Bigger does not mean better, and expensive does not mean smarter
At the other end of the scale, some investors make the opposite mistake.
They push their HMO refurbishment too far into the boutique market. Premium furniture, expensive kitchens and highly styled interiors can look impressive in photos, but they rarely provide the best long-term solution for a working HMO. Over time, high-end boutique finishes often become difficult and costly to replace. A damaged premium kitchen door, a discontinued furniture range or a specialist fitting can turn a simple repair into a major expense.
That is one of the biggest problems with over-specifying an HMO. Investors often choose a boutique finish because they want to justify eye-watering room rents and support a higher valuation. It can work for the first letting cycle. Later on, the reality often changes. Once the first tenants move out, room rates may soften, expectations may shift and the property can end up over-finished for its area. When that happens, owners may face lower achievable rents and a downvaluation later down the line.
Strong HMO refurbishments do not chase extremes. They sit in the middle ground where quality, durability and maintainability work together.
What a good HMO looks like in 2026
The best HMO refurbishments in 2026 focus on smart usable space.
Well-performing properties offer bedrooms that comfortably exceed minimum size requirements. They provide ensuites in each room where the property and deal support that model. They include dedicated kitchens and living rooms rather than expecting tenants to live only in their bedrooms. Smart layouts also create better flow, stronger storage and a better day-to-day living experience.
This is where experience matters most. A good HMO is not about adding as many rooms as possible. It is about creating a property that works properly.
That means:
- bedrooms that exceed minimum space standards
- ensuites that tenants genuinely value
- dedicated kitchens with enough preparation and storage space
- separate living rooms that make the property feel balanced
- flooring that is hard wearing and easy to maintain
- extensions that improve the layout rather than just adding cost
- fixtures and fittings that look good and last well
Space planning shapes everything. Tenants notice poor layouts immediately. They also recognise when a room feels generous, practical and comfortable. In a competitive market, that difference matters.
Compliance and quality have to work together
No serious investor should treat compliance as an afterthought.
Every HMO refurbishment must meet the required standards, but compliance alone is not enough. Investors also need to deliver a finish that tenants want to live in and landlords can maintain without constant replacement costs. A property can meet minimum rules and still fall short commercially if the design feels mean, dated or impractical.
That is why we always stress the same point. HMO properties should be done to a very good standard, but that standard must be maintainable and hard wearing. That is the key.
Cheap finishes wear out too quickly. Overly expensive finishes create costly replacement problems. Durable mid-to-high quality materials, sensible design choices and practical room layouts create a far better long-term result.
The market is becoming less forgiving
In 2026, the HMO sector is maturing.
Tenants are more informed. Local authorities are more alert to standards. Investors are under more pressure to get their numbers right. In that kind of market, poor refurbishments stand out quickly. So do properties that were built around unrealistic rents and inflated expectations.
Many of the people entering the sector after a brief course underestimate just how much detail goes into a successful HMO refurbishment. They focus on headline returns, not long-term durability. They look at how cheaply they can convert a property, not how well that property will perform in three, five or ten years.
Experience tells a different story.
The most successful HMOs are not the cheapest projects. They are not the most lavish either. They are the ones that combine compliance, generous usable space, durable finishes and sensible long-term thinking.
Why experience still matters
For over 34 years, we have completed end-to-end HMO refurbishments and management. We have also carried out more than 450 HMO refurbishments in that time. That track record has shown us exactly what delivers results and what creates expensive mistakes.
A strong HMO should have bedrooms that well exceed the minimum size requirements, all with ensuites, plus dedicated kitchens and living rooms. It should feel spacious, practical and well thought through. It should also use materials and fittings that can cope with the realities of long-term occupation.
That is the formula that works.
Not tiny cramped rooms with shared bathrooms because it is cheaper.
Not boutique interiors designed to chase unsustainable rents.
Instead, the right approach is a very good standard of finish, one that tenants value and landlords can maintain.
HMO refurbishments in 2026, the right way forward
The future of HMO refurbishments in 2026 looks strong for those who take the right approach.
There is still plenty of opportunity in the sector. Demand remains healthy for good shared accommodation. Better results will go to investors and landlords who plan properly, refurbish intelligently and think beyond the first valuation.
Getting an HMO right means making smart use of space, creating large comfortable ensuite bedrooms, including dedicated kitchens and living areas, and choosing durable hard-wearing finishes throughout. That is what gives a property long-term appeal. That is what helps protect performance over time. That is also what separates a professional HMO refurbishment from a rushed conversion.
After more than 34 years in the sector and over 450 completed HMO refurbishments, we know that quality and practicality always beat shortcuts.