"At a time when demand for affordable housing is at an all-time high, not least in densely populated cities where development space is limited, unlocking these homes as HMOs could provide a powerful and immediate boost to supply"
- Vann Vogstad - COHO
Thousands of long-term empty homes across England could be converted into Houses in Multiple Occupation (HMOs), potentially adding close to 5,000 properties to the market, new figures from HMO platform COHO suggest.
The analysis, based on the latest 2024 housing data from the UK Government, found that there are currently 264,884 long-term vacant dwellings across England, a 1.3% rise from the previous year. Regionally, the North West recorded the highest number of long-term empty homes at 38,894, just ahead of London at 38,386 and the South East with 35,869. The East of England reported the largest annual increase, up 8.2% to 28,103 homes.
With the new Labour government targeting 370,000 new homes each year, COHO’s research points to an underused solution already available within the country’s housing stock. The company argues that transforming a portion of these vacant homes into HMOs could offer a relatively swift and economical way to help address the shortage.
Currently, HMOs make up approximately 1.8% of all residential properties in England. Applying that same share to the number of long-term vacant dwellings yields a potential 4,889 additional HMOs.
London, where HMOs account for 3.8% of the housing stock, could accommodate 1,473 more by converting vacant properties. Other regional estimates include 591 new HMOs in Yorkshire and the Humber, 568 in the South East, 526 in the North West, 450 in the South West, and 446 in the West Midlands.
These projections are based solely on current HMO representation in each region. However, COHO argues that this may understate the true potential. As each HMO contains multiple rental units, repurposing existing vacant homes in this way could substantially boost housing capacity without the need for new construction.
“This analysis highlights a clear opportunity for local councils and planning authorities to rethink how we utilise the existing housing stock, particularly the tens of thousands of long-term vacant properties that sit completely unused across the country,” said Vann Vogstad, founder and CEO of COHO. “At a time when demand for affordable housing is at an all-time high, not least in densely populated cities where development space is limited, unlocking these homes as HMOs could provide a powerful and immediate boost to supply."
"This is particularly true when considering how the perception of HMOs is changing,” Vogstad continued. “In recent years, we’ve seen a significant shift in both the quality of HMO accommodation and the demographics they attract. More and more, we’re seeing young professionals come to the HMO, or Shared Living, market seeking high-quality homes in vibrant, well-connected areas, places where they can live with like-minded housemates in a fun, social environment.
“By enabling more Shared Living properties through flexible planning policies and proactive regeneration strategies, local authorities can not only help meet housing targets faster but also foster thriving communities in properties that would otherwise remain empty and underutilised.”
