HMO Numbers Up 2% Nationwide — But Sharp Regional Contrasts Emerge

The number of Houses in Multiple Occupation (HMOs) in England has increased by 2.3% over the past year, according to analysis by HMO management platform COHO. There are now an estimated 472,823 HMOs nationwide, following an annual increase of almost 10,500 properties. However, regional performance varies sharply, with some areas experiencing rapid expansion and others reporting significant declines.

The West Midlands recorded the strongest annual growth at 8.8%, followed by London (5.4%) and the North East (3.2%). In contrast, the number of HMOs fell by 4% in the East of England and by 3.3% in the South East.

At local authority level, the differences were even more pronounced. East Devon saw the sharpest increase, with HMO numbers up 523% year-on-year. Significant rises were also seen in Wandsworth (382%), South Staffordshire (300%), Wolverhampton (233%) and Medway (190%). In total, eight local authorities saw HMO numbers more than double over the year.

Elsewhere, steep declines were recorded. Welwyn Hatfield saw a 73% fall, Watford dropped by 66%, while numbers in Walsall and Sefton halved. Declines of between 36% and 38% were also seen in Reading, North Tyneside and Stevenage.

Vann Vogstad, founder and chief executive of COHO, said the figures highlight how local demand, planning rules and licensing regimes are driving uneven growth across the sector. He cautioned that the rise in stigma linked to political rhetoric around migrant housing and neighbourhood change risks undermining the role of HMOs in providing affordable, flexible housing.

“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, and we need to ensure they continue to support demand for affordable, well-managed shared housing.”