HMO licence approvals fall by 6% across Britain
The issuing of new House in Multiple Occupation (HMO) licences by local councils in Great Britain has fallen, with 23,947 approvals in 2024 compared to 25,445 in 2023.
That's a 5.9% decline, according to Searchland's figures.
Despite this, some regions, including Oxford, Bristol and parts of London, have bucked the trend with notable increases.
Oxford's local planning authority led the surge, granting 1,823 new licences, a rise of 1,341 from the previous year.
Bristol followed with 1,588 new approvals, up by 838, while Lambeth issued 2,515 licences, representing 10.5% of the national total.
Other areas, such as Hammersmith and Fulham (1,007) and Haringey (1,158), also approved more than 1,000 new licences.
We need more HMOs
Searchland's co-founder, Hugh Gibbs, said: "There's been a decline in the annual number of HMO licenses being granted by councils across Britain at a time when we arguably need more rental accommodation to ease the high demand from tenants.
"This reduction has no doubt been driven by a greater reluctance from councils due to a move towards risk-based licensing, but it's also fair to say that tighter regulations, particularly with regard to mandatory room sizes, may have also deterred investment."
He added: "However, not every area has seen a decline, and, in fact, many regional hotspots such as Oxford, Bristol and London have seen a substantial increase."
Nearly 12% of house sharers are over 40
Meanwhile, student landlords might be surprised by research from COHO, an HMO management platform, which has found a growing diversity in shared living.
Its survey of 4,500 house-sharers found 11.5% are aged 40 or older, with Southampton emerging as the top location for this demographic, accounting for 20.2% of over-40s in shared homes.
Of these, 55.7% are male and 44.1% female.
The firm's chief executive, Vann Vogstad, said: "Modern co-living is a world apart from what it used to be.
"For decades, HMOs have been associated with young people who are looking for an affordable home while they find their way in the world, or those who simply can't let go of the hedonistic days of university.
"Today, this simply isn't true. Co-living has evolved into a lifestyle choice rather than an economic necessity, and we're seeing more and more people in their 30s, 40s, and even 50s actively choosing to live with housemates."
Introduction of periodic tenancies
The managing director of Accommodation for Students, Simon Thompson, said: "The overall decline in HMO licence applications appears to signal tougher regulations and council caution, particularly with stricter room size rules, which may complicate new investments.
"However, the thriving HMO markets in Oxford, Bristol and Lambeth are offering potential for growth, while Southampton's appeal to older tenants suggests a broader tenant pool."
He added: "The HMO landscape for student landlords a tad trickier because of the Renters' Rights Bill bringing in periodic tenancies but there are still opportunities to be had – if councils allow the HMO application."
