A rising number of locations across Britain have seen applications to convert a property into a House in Multiple Occupation surge in recent years, figures show.
From 2018 to the end of 2024, the number of applications to turn properties into HMOs in Sandwell, West Midlands, rose 964 per cent, according to Just Landlords.
Over the same period, HMO application numbers in West Lancashire surged by 886 per cent, while in London’s Tower Hamlets, the figure was 750 per cent.
Guildford in Surrey also saw a substantial growth in HMO applications, which jumped 742 per cent between 2018 and the end of 2024, according to the analysis.
Waltham Forest in London also saw HMO application numbers jump 481 per cent in the period.
Across Britain, the number of HMO applications has, according to the analysis, on average increased by 40 per cent since 2018.
Rising: The number of HMO applications has surged in locations such as Tower Hamlets in London in recent years
In 2024, there were approximately 57,000 HMO applications, Just Landlords said.
From 2018 to 2024, Edinburgh in Scotland saw the highest average number of HMO applications each year, at 5,158.
This was followed by the university city of Oxford, at 2,458 per year on average, and Bristol, at around 1,491 each year.
Southwark in London had the fourth highest number of HMO applications each year, at around 1,412 per year, while in London’s Tower Hamlets, the figure was 1,394 applications every year.
Just Landlords extracted the data using a Freedom of Information Request to local more than 300 authorities across Britain.
Seventy-seven councils refused the request or said they were unable to provide the relevant data.
Clark Ross, managing director of Just Landlords, 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.’
He added: ‘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 HMO application numbers increase by nearly 100 per cent since 2018.’
According to the analysis, council inspections of HMO properties increased by 83 per in the period, while enforcement actions, including improvement notices and prosecutions, have risen by 180 per cent over the period.
Locations such as Blackpool and Fenland saw over half of all HMO applications applications refused between 2018 and the end of 2024, while landlords in Lewisham, Wandsworth and Liverpool saw higher than average numbers of enforcement actions.
In Blackpool, 70 per cent of HMO applications were refused by the local authority between 2018 and 2024, while in Fenland, 51 per cent were refused.
Lewisham, Wandsworth, Liverpool, Denbighshire and Camden saw the highest number of HMO enforcement actions annually in the period, Just Landlords said.
It said growth in HMO applications numbers remained strong in ‘high-demand university cities and growing regional investment hubs.’
Ross, of Just Landlords, added: ‘While our findings reveal an environment of tightened regulation, this should be seen as a positive step for the market.
‘Higher standards protect the reputation of the sector and ensure that dedicated, professional landlords aren’t being undercut by sub-standard operators.’
HMOs have advocates and critics
While advocates of HMOs will claim they help boost the availability of affordable rental accommodation, critics cite problems with antisocial behaviour, increased car use in the area, problems with more rubbish coming from the property, parking issues, and changes to the ambiance in a local area.
Residential property buyers may, for example. buy a semi-detached or terraced house in what they thought was a quiet street, only to find that next door is soon to be turned into a sizeable HMO.
In some cases, critics claim having an HMO next door could potentially damage the value of your home and make it harder to sell.
A property is an HMO if both of the following apply: at least three people forming more two or more households live there and toilet, bathroom or kitchen facilities are shared.
In most cases, landlords need to be licensed to run an HMO, but there are some limited exceptions.
Landlords only need a licence if their property has five or more people forming two or more households and shared facilities.
Purpose built blocks with more than three flats do not typically require a licence. They may still be classed as HMOs and therefore be required to meet fire and amenities standards.
Minimum room sizes apply to HMO properties and landlords must adhere to fire safety standards.
Some councils, such as Camden in London, operate borough-wide additional licensing schemes which apply to all HMOs not subject to mandatory licensing.
Councils are responsible for enforcing HMO standards and can make a landlord take action to correct any problems.