HMO numbers increase by 2% in England Mortgage Finance Gazette

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The number of houses in multiple occupation in England has risen by 2.3% over the past year, according to analysis by HMO management platform COHO.

The company’s research, based on official data, shows there are now an estimated 472,823 HMOs across the country, following an annual increase of nearly 10,500 homes.

But there are wide regional variations.

The West Midlands recorded the strongest growth at 8.8%, followed by London at 5.4% and the North East at 3.2%.

By contrast, numbers fell by 4% in the East of England and by 3.3% in the South East.

At a local authority level, East Devon saw the sharpest increase, with HMO numbers up 523% in the past year.

The figure in Wandsworth grew by 382%, South Staffordshire by 300%, Wolverhampton by 233% and Medway by 190%.

In total, eight local authorities saw their number of HMOs more than double.

Elsewhere there were steep declines.

Welwyn Hatfield recorded a 73% fall and Watford saw a 66% drop.

HMO numbers halved in Walsall and Sefton, while Reading, North Tyneside and Stevenage saw declines of between 36% and 38%.

COHO says these regional disparities are the result of differences in local demand, planning rules and licensing regimes.

COHO founder and chief executive Vann Vogstad 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.

“We are at a time when the need for good quality, affordable, and well-managed shared housing has never been greater.”

He says 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.

Vogstadd adds: “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.”