Expert Tips for Converting Homes into Apartment Units

When splitting a 4-bedroom house into two 2-bedroom apartments, separating the utility costs for electricity, water, and other services is a crucial part of the process. Each apartment should be independently metered so that each occupant can be billed directly for their own usage. Here's a detailed guide on how to approach this:

1. Electricity

To ensure that each apartment pays for its own electricity usage, you will need to install separate electricity meters for each unit. Here’s the process:

Steps:

1. Consult with an Electrician: Hire a certified electrician to assess the property and install separate wiring circuits for each apartment. They will ensure that each unit is fully independent, including separate breaker panels for each apartment.

2. Apply for a New Meter: You’ll need to contact your electricity supplier (e.g., British Gas, E.ON, or your local Distribution Network Operator) and apply for a new meter for the additional unit. The utility company will send out engineers to install the new meter.

3. Meter Placement: The new electricity meters should be placed in a location where both units can access them, but they are clearly marked to avoid confusion. Usually, the meters are placed in a shared hallway or utility room.

4. Billing: Once the new meters are in place, the utility company will bill each apartment separately based on individual consumption. The process ensures that the new owners or tenants of each flat will only pay for the electricity they use.

Costs:

• The cost of installing a new electricity meter typically ranges from £500 to £1,000, depending on the complexity of the electrical work.

• Running new wiring circuits may incur additional costs, especially if walls need to be opened and re-plastered.

2. Water Supply

To have each apartment individually billed for water usage, you'll need to install separate water meters. This is especially important if the new owners will be responsible for their own water consumption.

Steps:

1. Contact the Water Supplier: Notify your local water provider (e.g., Thames Water, Severn Trent) of the intention to split the house into two units. They will arrange for the installation of an additional water meter.

2. Plumbing Assessment: Hire a professional plumber to assess the existing water system. They will need to install separate plumbing lines for each apartment, ensuring that the supply is properly divided. This might involve re-routing some of the existing pipework.

3. Meter Installation: The water company will send technicians to install the second water meter, ensuring each flat has its own meter. The meters should be placed in an accessible location for future readings.

4. Separate Hot Water Systems: You should also install individual hot water systems (boilers or water heaters) for each apartment to ensure the occupants are only paying for the energy used to heat their own water.

5. Billing: Once the meters are installed, the water company will issue separate bills for each flat, based on individual usage.

Costs:

• Installing a separate water meter can cost around £300 to £1,000 depending on the complexity of the job and plumbing modifications required.

• Re-routing plumbing systems and installing individual hot water systems will incur additional costs.

3. Gas Supply (if applicable)

If the property uses gas (for heating or cooking), separate meters will also be needed for the gas supply to each apartment.

Steps:

1. Contact Your Gas Supplier: Inform your current gas supplier (e.g., British Gas) that you’re converting the house into flats. They will arrange for an additional gas meter to be installed.

2. Plumbing and Heating System: A Gas Safe registered engineer will need to assess the property to determine the best way to separate the gas supply. Each apartment will need its own independent gas line and boiler if both will be heated by gas.

3. Meter Installation: Once the gas lines are separated, the gas supplier will install a new meter. Like the electricity and water meters, this should be clearly labeled and placed in a shared area that is accessible to both flats.

   
   

4. Billing: The gas supplier will bill each apartment based on the individual meter readings.

Costs:

• Installing a new gas meter typically costs £500 to £1,500 depending on the work needed.

• If you need to install new boilers or central heating systems, the cost could rise significantly.

4. Internet and Phone Lines

For Internet and phone services, each apartment will need its own independent connection. This is typically more straightforward than separating utility supplies.

Steps:

1. Contact Internet Service Providers (ISPs): Each apartment can arrange its own contract with an ISP (e.g., BT, Virgin Media). The provider will install separate phone lines and internet routers for each unit.

2. Cable Routing: Ensure the wiring (e.g., fiber-optic cables) is properly routed to each apartment and that communal areas like stairwells or hallways don’t impede installations.

Costs:

• Installation of a separate phone line or internet connection typically costs around £50-£150, depending on the provider and service plan chosen by each occupant.

5. Council Tax and Other Bills

Once the conversion is complete, each apartment will likely be assigned its own council tax band by the local council. This ensures that the occupants of each flat are billed separately for council tax.

Steps:

1. Inform the Council: After the property has been split, you need to inform your local council so they can reassess the property’s council tax banding.

2. Valuation and Banding: The council will send a representative from the Valuation Office Agency (VOA) to assess the two new flats and assign separate council tax bands for each. This will likely result in two smaller band assessments, reflecting the fact that the property is no longer a single dwelling.

Costs:

• There is no direct cost to split council tax, but it will affect how much each flat pays in tax. Smaller flats typically fall into lower council tax bands than larger houses.

6. TV Licensing

Each flat will also need its own TV license if the occupants watch live television or use BBC iPlayer. This is straightforward and can be managed by each tenant or owner individually.

Steps:

1. Each apartment occupant should apply for their own TV license online or through the post.

Costs:

• The current cost of a TV license in the UK is around £159 per year (2024 rate).

7. Other Considerations

Refuse Collection and Bins:

• Depending on your local council’s rules, you may need to request additional refuse and recycling bins for each apartment. Some councils provide bins free of charge, while others charge for additional bins.

Post & Mail:

• Consider creating separate postboxes or a shared mail area with clearly marked spaces for each apartment’s mail.

Summary of Steps:

1. Electricity – Install separate meters, contact suppliers, rewire circuits.

2. Water – Install separate meters, split the plumbing systems.

3. Gas – Separate meters and individual heating systems (if applicable).

4. Internet/Phone – Each flat arranges its own internet and phone connection.

5. Council Tax – Inform the council and request separate tax bands for each flat.

6. TV License – Each apartment must get its own license.

7. Bins & Mail – Organise separate bins and postboxes for each flat.

By installing separate meters and splitting utilities for each flat, you not only ensure that each apartment can function independently, but you also avoid any disputes between tenants or owners about shared bills. The initial investment to split utilities is essential but will increase the attractiveness of the property for potential buyers or tenants, making it more practical for independent living.