HMO Design Secrets: Boost Your Rental Yield in Stoke-on-Trent &Crewe

The Hotel-Grade HMO: Design Secrets to Boost Your Rental Yield by 36% in Stoke- on-Trent and Crewe

The landscape of property investment is constantly evolving, with the UK property market in showing modest, yet resilient, growth. One sector continues to demonstrate exceptional potential: Houses in Multiple Occupation (HMOs). For investors in high-demand areas like Stoke-on-Trent and Crewe, the key to unlocking maximum profitability no longer lies just in securing the right deal—it's in the design.

In this deep-dive, we take expert insights from our latest podcast with Raquel Aparicio of M Design, an architect and interior design specialist, who argues that the most successful HMOs are those treated not as shared houses, but as premium, hospitality-grade accommodation. The results are staggering: a proven path to achieving over % uplift in rental income and a significant reduction in void periods. This strategy is more relevant than ever as investors look to future-proof their assets against new regulatory changes and a competitive professional rental market.

Why Design is Your Biggest Asset, Not an Afterthought

For too long, interior design in the HMO sector has been viewed as a superficial expense, a mere coat of paint applied at the end of a refurbishment. This mindset is a critical error. Raquel highlights that for many investors, the process is one of overwhelm [], where time is spent coordinating builders and sourcing furniture instead of focusing on portfolio expansion.

"By having me doing all the part of the design and coordinate with the builder, I would be taking all that overwhelm from him so that he can go and concentrate on the things that are more important to him." – Raquel Aparicio, M Design

The true value of an expert interior architect, like those at M Design, is not just aesthetic; it is fundamentally commercial. By applying a commercially driven mindset, the design process is optimized to maximize a property’s rental performance and end valuation.

The Commercial Case for Premium HMO Design: The ROI Proof

The decision to invest in professional design is a strategic financial one, not a mere aesthetic choice. The return on investment (ROI) is quantifiable and substantial, particularly when compared to a standard, non-designed HMO.

Consider the compelling case study shared by Raquel Aparicio, where a developer moved from a standard refurbishment approach to adopting a professional design strategy:

Metric Before After Uplift Citation

Professional Professional

Design Design

Occupancy rate 60-70% 90%+ +20-30% [1]

5-year Gross £184,000 £324,000 +£140,000 [1]

Income

Projection .

Rental Uplift Standard Premium Rate 36% [1]

Market Rate

Void Periods Higher Significantly Minimal [1]

Reduced

Tenant Profile Mixed High- Quality/ Premium [1]

Professional

This data unequivocally proves that the initial investment in design is quickly recouped through higher rental income and reduced void periods. In competitive markets like Stoke on-Trent and Crewe, where HMOs are increasingly catering to young professionals, a premium, hotel-standard finish is the crucial differentiator. Investors who raise the bar [1] move beyond simply delivering "another HMO" and create spaces that attract and retain high-quality tenants willing to pay a premium. The result is a property that not only achieves higher rents but also maintains its value and appeal over the long term, making it a more robust and valuable asset.

The value extends beyond rent. As Raquel notes, a property that "looks absolutely amazing and works well" [1] will receive a completely different valuation [1] from a surveyor, leading to higher end-valuation and better refinancing options. This is the infinite return on design.

Common Refurbishment Mistakes That Kill Your HMO's Potential

Before diving into the design principles that ensure success, it is crucial to address the common pitfalls that undermine an HMO investment from the start. Many investors, particularly those new to the HMO sector, make fundamental errors during the refurbishment phase that severely limit the property's rental potential and tenant retention.

The Biggest Mistakes in HMO Refurbishment

Drawing from our experience managing HMOs in Stoke-on-Trent and Crewe, and the insights from M Design, the following are the most frequent and costly mistakes:

1. Incorrect Space Planning and Layout

   As highlighted in the podcast, the number one mistake is incorrect space planning [1]. This goes beyond just meeting minimum room sizes. It involves failing to create a functional flow between the day and night areas. For instance, a common error is having a kitchen diner that is technically compliant but functionally inadequate, leading to congestion and tenant frustration. In a five or six-bed HMO, the kitchen must be designed for six people to use it comfortably, not just legally. This includes sufficient worktop space, multiple cooking hobs, and adequate refrigeration. The need for robust, high-capacity communal facilities is a timeless design principle that directly impacts tenant satisfaction.

2. Cramping Rooms with Excessive or Poor-Quality Furniture

   There is a temptation to "cram" rooms with furniture to make them appear more fully equipped [1]. However, this is counterproductive, especially in smaller rooms common in converted terraced houses in areas like Stoke-on-Trent. A cramped room feels smaller, less comfortable, and hinders circulation. The focus must be on providing the right amount of good-quality, durable furniture that fits the scale of the room. Poor-quality furniture leads to higher maintenance costs and a faster turnover of tenants. Tenants are willing to pay a premium for a comfortable bed and a nice chair [1].

3. Ignoring the Power of Socket and Lighting Design

   The absence of a sufficient number of sockets, or their poor placement (e.g., behind a bed or a sofa), is a constant source of tenant annoyance [1]. In a modern, professional HMO, the expectation is that tenants will have a laptop, a phone, and potentially a tablet or other devices. The minimum of six sockets per double room, with USB ports, is a non-negotiable standard for a premium product. Similarly, poor lighting design—relying solely on a single, harsh overhead light—fails to create the "sanctuary" feel that modern tenants demand.

4. Neglecting the Communal Dining and Social Area

   While the bedrooms are important, the communal area is where the community is built, and it is a key selling point. Investors often compromise on the communal dining table, either by making it too small or by using a poor-quality substitute. Tenants should be able to eat together comfortably [1]. This space must be inviting, well-lit, and designed for social interaction, which is a major draw for HMO living.

   
   

   By avoiding these common refurbishment mistakes, you establish a solid foundation upon which the advanced principles of hotel-grade design can truly elevate your investment.

The Principles of Hotel-Grade HMO Design

Raquel’s approach is rooted in her extensive experience in hospitality and high-end residential projects. The core principle is simple: an HMO should be designed like a hotel [1].

Zoning: Separating Day and Night

A successful HMO layout hinges on effective zoning [1]. This involves clearly distinguishing between:

• Day Areas (Communal): Kitchens, lounges, utility rooms, and transition areas.

• Night Areas (Private): Bedrooms, including en-suites, storage, and working areas.

This distinction allows for a more functional and harmonious living environment.

Communal Spaces: Designed for Maximum Capacity

One of the biggest mistakes landlords make is underestimating the demands on communal areas. The design must assume the property is at maximum capacity [1] at all times.

• Circulation: Tenants must be able to move freely without bumping into each other.

• Worktop Space: Ample worktop and appliance space is essential, especially in kitchens.

• Dining: The communal dining area must be able to comfortably seat all tenants simultaneously.

Local council guidelines often stipulate minimum communal space requirements, which typically include a guideline of 1.9m² per person [4] in certain areas, though local requirements in Stoke-on-Trent and Crewe may vary. Always consult the specific HMO guidelines for your local authority, especially in areas with Article 4 Directions [2] active, which can impose stricter standards.

The Bedroom: A Sanctuary for Living and Working

The modern tenant views their private space as a multi-functional hub for living, working, and relaxing. The bedroom is no longer just for sleeping; it is a space for working, relaxing, and living.

Focus on Functionality and Detail:

• Storage: Adequate, well-designed storage is paramount. Tenants need space for clothes, personal items, and luggage.

• Tea Stations/Mini-Fridges: While full kitchens are shared, the inclusion of a dedicated tea station or space for a mini-fridge in the room is a highly desirable feature that reduces friction in the communal kitchen.

• Socket Placement: This is a critical, yet often overlooked, detail. Sockets and switches must be coordinated with the furniture layout. Raquel suggests a minimum of six sockets [1] for a double room (two by each bedside, two at the working area, and one for the Hoover/tea station), with an emphasis on incorporating USB ports [1] for modern convenience.

• Lighting Design: Proper lighting is key to creating a comfortable and safe atmosphere, moving beyond harsh overhead lighting to include task and ambient lighting that works with the space [1].

Local Market Advantage: Stoke-on-Trent and Crewe

Essential Property Options specialises in the Stoke-on-Trent and Crewe markets because they offer exceptional investment potential. To truly outperform, your design must be tailored to the local tenant profile and current market dynamics.

Stoke-on-Trent: Moderate Growth and Affordability

Stoke-on-Trent remains a highly attractive market for investors due to its affordability and steady growth.

• Average House Price (July 2025): The average house price in Stoke-on-Trent stands at approximately £146,000 [2], according to the latest ONS data.

• Price Growth: The city is experiencing moderate, sustainable growth, with a reported 2.6% year-on-year price increase [2]. This steady performance, coupled with a strong rental demand, makes HMO conversion a compelling strategy.

• Conversions: The trend of commercial-to-residential conversions is still highly active in 2025, offering investors opportunities to create larger, purpose-built HMOs [3].

Crewe: Regeneration and Future Focus

Crewe's investment narrative has shifted, now focusing on local regeneration and its long-term vision.

• Post-HS2 Focus: Following the cancellation of the full HS2 route, Crewe's focus has intensified on its local regeneration plan, aiming to become the "best small city in Europe by 2050" [3]. This commitment to long-term growth and infrastructure investment continues to attract professionals and maintain high occupancy rates.

• High Occupancy and Yields: EPO’s experience in the area continues to show high 90% occupancy [8] rates across both HMO and Serviced Accommodation (SA) properties.

• Article 4 Directions: Investors must be aware that Article 4 Directions are active in parts of Crewe (and Stoke-on-Trent) [2], requiring planning permission for new HMOs (C4 use class). This makes securing existing HMOs or following the correct planning process critical.

By delivering a superior product through expert design, you are not just competing on price; you are creating a new, higher tier of accommodation that commands premium rents and minimal voids, all while navigating the 2025 regulatory landscape.

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Frequently Asked Questions (FAQs)

1. What is the single biggest mistake new HMO investors make regarding design?

   The biggest mistake is failing to engage in correct space planning [1] from the outset. Without a professional plan, investors often cram too much furniture into rooms, leading to unusable communal spaces and poor circulation, which directly impacts tenant satisfaction and occupancy rates.

2. How does professional design affect the final valuation of my HMO?

   A professionally designed, high-spec property significantly impresses valuers. When a property "looks absolutely amazing and works well" [1], it stands out from the competition, leading the valuer to provide a completely different valuation [1] and a higher end-value for the property

3. What are the key regulatory changes investors need to be aware of in 2025?

   Investors must be aware of several critical changes [2]:

   • The planned abolition of Section 21 ("no-fault evictions") under the Renters' Rights Bill, which will change tenancy management.

   • The mandatory HMO licensing requirement for properties with five or more unrelated tenants remains in effect.

   • The looming deadline for EPC requirements to reach a minimum of EPC C by 2028 for new tenancies, making energy efficiency a key design consideration now.

4. How can I ensure my builder delivers the design vision accurately?

   You must provide your builder with a really good set of technical drawings [1]. This ensures the builder knows exactly what to build, can provide an accurate refurbishment cost, and, crucially, can organize their work to potentially decrease the refurbishment time [1], getting the property on the market faster

5. What is 'design clarity' and why is it important?

   Design clarity is the ability to communicate the entire design vision—from the layout to the aesthetic details—to the builder and the entire project team. It is essential because it eliminates guesswork, prevents costly mistakes, and ensures the final product matches the premium standard required to achieve the 36% rental uplift [1].

6. What are the minimum number of sockets recommended for a modern HMO double room?

   An expert recommendation is a minimum of six sockets [1] per double room: two by each bedside table, and two at the dedicated working area. It is highly recommended that these include USB ports [1] for tenant convenience.

7.  What is the current market outlook for Stoke-on-Trent property investment in 2025?

   Stoke-on-Trent is projected to see modest, steady growth [2] in 2025-2026, with an affordable average house price of around £146,000 [2]. This combination of affordability and moderate price appreciation makes it a strong market for high-yield HMO strategies.

8. What is the typical communal space requirement for an HMO?

   While specific requirements vary by local authority, a common guideline for communal space is 1.9m² per person [4]. This is a critical factor in space planning and must be checked against the specific licensing requirements of Stoke-on-Trent or Crewe councils, especially where Article 4 Directions [2] are in place

Ready to transform your HMO portfolio and achieve a 36%+ rental uplift?

Contact Essential Property Options today for a consultation on maximizing your property's potential in Stoke-on-Trent and Crewe.

Visit our website at www.essentialpropertyoptions.co.uk or call us on 01782 123 456 to speak with an investment specialist.