An increasing number of landlords are moving away from traditional lets in favour of HMOs, according to Just Landlords boss Clark Ross.
10th Apr 20261 6,921 1 minute read Simon Cairnes
HMO licence applications have increased by 40% since 2018, as landlords move their focus to shared housing to meet rising demand for more affordable rental options.
The figures, which are based on Freedom of Information requests to councils by specialist insurance group Just Landlords, show applications have climbed from 41,162 to 57,725.
The data also reveals some widespread regional variation. Edinburgh is the UK’s current HMO capital, averaging 5,158 applications a year, followed by Oxford at 2,458, Bristol at 1,491, Southwark at 1,412 and Tower Hamlets at 1,394.
Accelerating growthIn other areas, growth has accelerated rapidly. Sandwell has recorded the highest increase, with applications rising by 964% from 28 in 2018 to 298 in 2024. West Lancashire has seen growth of 886%, Tower Hamlets 750%, Guildford 742% and Waltham Forest 481%.
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.”
Clark Ross (pictured), Managing Director at Just Landlords, told the Mortgage Finance Gazette: “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.”
He adds: “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.”
Even though Just Landlords’ analysis shows council inspections for HMOs are up 83% since 2018, and enforcement by 180%, it has not put off investors. Nor have the very high refusal rates in some areas. Blackpool has the highest rate at 70%, followed by Fenland at 51% and Sandwell at 48%.
TagsHMOs 10th Apr 20261 6,921 1 minute read Simon Cairnes Share Facebook X LinkedIn Share via Email