The UK’s houses in multiple occupation (HMO) market has seen a 40% increase in license applications since 2018, according to research from Just Landlords.
The research suggests that landlords are increasingly picking shared housing to meet demand for affordable and quality living spaces.
Just Landlords has analysed data obtained via Freedom of Information (FOI) requests from local councils across the UK.
It found that since 2018, the number of annual HMO applications has climbed from 41,162 to a record-breaking 57,725.
While HMO growth has been steady throughout the UK, the situation varies from one city to the next. Edinburgh is the UK’s HMO capital, with an average of 5,158 applications each year.
Areas with the highest annual application rates
- Edinburgh – 5,158
- Oxford – 2,458
- Bristol – 1,491
- Southwark – 1,412
- Tower Hamlets – 1,394
Sandwell, in the West Midlands, reported the highest rate of growth, seeing applications jump by 964%, from 28 in 2018 to 298 in 2024.
Areas with the highest application growth
- Sandwell – 964%
- West Lancashire – 886%
- Tower Hamlets – 750%
- Guildford – 742%
- Waltham Forest – 481%
Just Landlords managing director Clark Ross said: “We’re witnessing a major evolution in the UK rental market. An increasing number of landlords are moving away from traditional lets in favour of HMOs, to help meet the growing demand for flexible, affordable housing solutions.”
“We’re also seeing an interesting geographical shift in investment. While London remains a cornerstone of the market, there has been huge growth in the Midlands and the North, with some areas seeing application numbers increase by nearly 1,000% since 2018.”
Across the UK, council inspections of HMOs have risen by 83% since 2018, while enforcement actions, including improvement notices and prosecutions, have jumped by 180%.
While the national picture is one of growth, the data also identifies areas where the market is still adjusting to new regulations.
Areas like Blackpool and Fenland saw over half of their annual applications refused, while landlords in Lewisham, Wandsworth and Liverpool saw higher than average numbers of enforcement actions.
Areas with the highest application refusal rates
- Blackpool – 70%
- Fenland – 51%
- Sandwell – 48%
- Armagh – 26%
- Norwich – 24%
Areas with the highest number of annual enforcement actions
- Lewisham – 288
- Wandsworth – 146
- Liverpool – 141
- Denbighshire – 141
- Camden – 117
Despite increased enforcement in some areas, the overall picture of the UK HMO market remains one of strong growth. As more landlords enter the sector and councils continue to improve oversight, standards across shared housing are expected to continue rising.
