A new generation of property entrepreneurs is making big profits by turning flats and homes into bedsits on an industrial scale.

Converting a living room into two bedrooms can more than double the rental income of a property, according to estate agents. In one case, a five-bed property with a rental value of £2,200 a month was converted into a seven-bed flat with no living room. Each room was being let at an average of £642 a month, giving a total monthly income of £4,496.

In another case, a two-bedroom property with a rental value of £1,400 a month had been converted into a five-bedroom flat with each bedroom being rented out at an average of £580 a month, giving a total of £2,900.

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