Floor Areas
A workable small 1 bedroom Homes within Homes conversion might comprise: Reception Room/Kitchenette 15 sq metres, Bedroom 10 sq m and Bathroom 5 sq m giving a total area for living of 30 sq metres, excluding hallways.
Allowing for a Second bedroom and slightly larger Reception Room, a 2 bed conversion might occupy an area for living of 40-45 sq metres
Rents
In two pilot projects in London, Homes within Homes conversions earned rentals per month of
£ 820 (£ 9,840 per annum) for a 1 bedroom and
£ 1,250 (£ 15,000) for a 2 bedroom self-contained area for living
In those areas current market rents on comparable properties were £1,150-£1,350 (1 bed) and £1,250-£1,550 (2 bed)……… Homes Within Homes provided a reduction in rental levels of between 29%-61% (1 bed) and up to 20% (2 bed)
However, the saving for renters is even greater because Homes within Homes rents are ALL INCLUSIVE of shared service costs and after allowing £ 240 per month for Energy, Water and Council Tax charges the underlying rent on the two pilot projects is £580 (1 bed) and £ 1,010 (2 bed) being only 42-50% of the existing rent level for a 1 bed flat and 65-81% for a 2 bed flat
These revolutionary savings can massively reduce the cost of living for renters (the current household rent to income ratio in our 1 bed pilot project would fall from 36% currently to 15-20%) and reduce the cost of welfare for Government.
Cost of Conversion and Return for Homeowners
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Our two pilot projects cost £ 12,175 for a simple 1 bed conversion and £ 16,675 for a 2 bed conversion. The rents on the projects of £ 820 per month and £ 1,250 per month give a simple annual rate of return to the Homeowner of 81% and 90% respectively, before tax
Pensions
The maximum basic state pension is currently £ 125.95 per week, £6,549 per annum. Even the simplest 1 bed conversion should earn £700-900 per month, £8,400-£10,800 per annum, more than doubling the current basic pension income for a Homeowner
