The number of HMO licences being granted by local planning authorities is on the decline.
Data shows that in 2024 the number of new HMO licences granted by local planning authorities (LPAs) in Great Britain fell by 1,498. While 2023 saw a total of 25,445 new licences issued, 2024 saw 23,947 – an annual drop of 5.9%.
This was despite a few LPAs significantly increasing the number of new HMO licences granted – Oxford in particular, where 1,823 new licences marked an annual increase of 1,341 over the previous year.
Meanwhile, new licence approvals also saw an annual increase of more than 500 in Bristol (+838), Lambeth (+759), Hammersmith & Fulham (+544) and Charnwood (+533).
Following this annual change, Britain’s new HMO licence hotspot is Lambeth where 2024’s total of 2,515 new licence approvals is equivalent to 10.50% of the national whole. Oxford LPA granted 1,823 new licences and the City of Bristol granted 1,588.
Meanwhile, Haringey (1,158), Southwark (1,087), and Hammersmith & Fulham (1,007) also granted more than 1,000 new HMO licences last year.
A spokesperson for the company behind the research, Searchland, says:
“There’s been a decline … when we arguably need more rental accommodation to ease the high demand from tenants. This reduction has no doubt been driven by a greater reluctance from councils due to a move towards risk-based licensing, but it’s also fair to say that tighter regulations, particularly with regard to mandatory room sizes, may have also deterred investment.”
This article is taken from Landlord Today