"This reduction has no doubt been driven by a greater reluctance from councils due to a move towards risk-based licensing"
However, this decline hasn’t been consistent nationwide, with notable increases seen in areas like Oxford, Bristol, and various parts of London.
According to Searchland’s data, LPAs across Great Britain issued 1,498 fewer new HMO licences in 2024 compared to the previous year. While 25,445 licences were granted in 2023, the number dropped to 23,947 in 2024 — a 5.9% year-on-year decrease.
Despite this overall fall, several LPAs bucked the trend. Oxford LPA recorded the most significant increase, granting 1,823 new licences in 2024 — a rise of 1,341 from the previous year.
Other areas also saw notable growth, including the City of Bristol (+838), Lambeth (+759), Hammersmith & Fulham (+544), and Charnwood (+533).
In terms of volume, Lambeth emerged as the leading hotspot, accounting for 10.50% of all new HMO licence approvals in Britain in 2024 with a total of 2,515.
Oxford followed with 1,823 approvals, while the City of Bristol issued 1,588. Haringey (1,158), Southwark (1,087), and Hammersmith & Fulham (1,007) also surpassed the 1,000-licence mark.
Hugh Gibbs, co-founder of Searchland, commented:
“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.
"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.”
