The number of HMOs in England has grown by 2.3% over the past year, but there are extreme regional disparities.
According to COHO’s analysis of the latest government data, there are an estimated 472,823 HMO properties across England after an annual increase of 2.3%, or nearly 10,500 homes. However, behind this steady national growth lies a patchwork of sharp increases and dramatic declines.
The West Midlands leads the way, with an 8.8% increase in HMO numbers over the past year. London (5.4%) and the North East (3.2%) also recorded above-average growth. In stark contrast, the East of England has seen HMO numbers fall by 4%, while the South East reported a drop of 3.3%.
When broken down to local authority level, the figures reveal a market in flux. East Devon has seen the most dramatic growth, with a 523% surge in HMO numbers, while Wandsworth (381.6%), South Staffordshire (300%), Wolverhampton (233.3%) and Medway (190.1%) are among a group of eight local authorities where HMO supply has more than doubled in just one year. Authorities in these areas clearly understand the need to increase the supply of quality housing for the local community.
Yet in other parts of the country, HMO numbers have collapsed. Welwyn Hatfield recorded a 72.5% fall, while Watford saw a 65.6% decline. Other significant drops were reported in Walsall and Sefton (both 50%), Reading (37.6%), North Tyneside (37.1%) and Stevenage (36.7%).
These findings point to a fragmented and highly localised HMO market, shaped by varying levels of demand, planning policy, and licensing conditions.
A COHO spokesperson says: “While it’s encouraging to see overall growth in the HMO sector, the stark regional disparities raise important questions about access, policy, and perception. HMOs play a vital role in the UK housing market, not only do they offer more affordable living options at a time when housing costs are spiralling, but they also create a sense of community and shared living that can help tackle the growing crisis of social isolation and poor mental health.
“We are at a time when the need for good quality, affordable, and well-managed shared housing has never been greater. But the growth in some areas and the sharp declines in others suggest that local attitudes, licensing regimes, and planning decisions are creating an uneven playing field. In too many places, regulation appears to be discouraging supply rather than improving standards.
“There’s also a wider concern around how the sector is being portrayed. The rise in stigma linked to recent political rhetoric around migrant housing and changing neighbourhoods risks further undermining public understanding of HMOs and their value.
“If we allow fear and misinformation to shape housing policy, we’ll end up penalising the very model that helps many people find stable, sociable and affordable places to live. This is bad for tenants, bad for communities, and bad for the nation’s economy.”
This article is taken from Landlord Today