HMO market posts modest growth amid sharp regional contrasts

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The number of Houses in Multiple Occupation (HMOs) in England has grown modestly over the past year though the national rise conceals wide regional variations, according to new research.

Analysis by COHO, an HMO management platform, shows that there are now an estimated 472,823 HMOs across England, up 2.3%, or almost 10,500 homes, on last year.

The West Midlands led the way with an 8.8% rise, followed by London at 5.4% and the North East at 3.2%.

By contrast, the East of England recorded a 4% fall in HMO numbers, while the South East declined by 3.3%.

UNEVEN PICTURE

The picture is even more uneven at local authority level. East Devon reported a 523% increase in HMO supply, with Wandsworth (381.6%), South Staffordshire (300%), Wolverhampton (233.3%) and Medway (190.1%) also more than doubling stock.

Others have moved sharply in the opposite direction. Welwyn Hatfield saw a 72.5% fall in HMOs, while Watford’s numbers dropped by 65.6%. Walsall and Sefton both reported a 50% decline, with significant falls also in Reading (37.6%), North Tyneside (37.1%) and Stevenage (36.7%).

FRAGMENTED MARKET

Vann Vogstad (main picture, inset), founder and chief executive of COHO, said that the figures highlight a fragmented market shaped by local policy, licensing rules and shifting demand.

And he added: “While it is 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, offering affordable options at a time of spiralling costs. But in too many places, regulation appears to be discouraging supply rather than improving standards.”

But Vogstad warned that negative public perceptions, linked in part to political rhetoric around migrant housing, risk undermining the sector’s role.

“If fear and misinformation shape housing policy, we risk penalising a model that provides stable, sociable and affordable homes,” he said.

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