"We are at a time when the need for good quality, affordable, and well-managed shared housing has never been greater. But the growth in some areas and the sharp declines in others suggest that local attitudes, licensing regimes, and planning decisions are creating an uneven playing field"
- Vann Vogstad - COHO
New analysis from HMO management platform, COHO, shows that the number of Houses in Multiple Occupation (HMOs) in England has risen modestly overall, though sharp regional differences underline a fragmented market.
Government data reviewed by COHO indicates there are now an estimated 472,823 HMOs across England. That figure reflects a 2.3% annual increase, equal to nearly 10,500 homes. However, this steady national rise conceals significant local variation.
The West Midlands recorded the strongest growth, with HMO numbers climbing 8.8% in the past year. London followed with 5.4% and the North East with 3.2%, both above the national average. By contrast, the East of England saw numbers fall by 4%, while the South East reported a decline of 3.3%.
At the local authority level, the range is even more pronounced. East Devon experienced the sharpest growth, with a 523% rise in HMO supply. Wandsworth (381.6%), South Staffordshire (300%), Wolverhampton (233.3%) and Medway (190.1%) also more than doubled their totals. Authorities in these areas appear to have supported substantial expansion of shared housing.
In other areas, supply has fallen steeply. Welwyn Hatfield registered a 72.5% drop in HMO numbers, while Watford saw a 65.6% decrease. Reductions of 50% were recorded in both Walsall and Sefton. Reading (37.6%), North Tyneside (37.1%) and Stevenage (36.7%) also posted significant falls.
The findings suggest a market shaped by varying demand, planning frameworks, and licensing regimes.
"While it's encouraging to see overall growth in the HMO sector, the stark regional disparities raise important questions about access, policy, and perception," said Vann Vogstad, founder and CEO of COHO. "HMOs play a vital role in the UK housing market, not only do they offer more affordable living options at a time when housing costs are spiralling, but they also create a sense of community and shared living that can help tackle the growing crisis of social isolation and poor mental health.
"We are at a time when the need for good quality, affordable, and well-managed shared housing has never been greater. But the growth in some areas and the sharp declines in others suggest that local attitudes, licensing regimes, and planning decisions are creating an uneven playing field. In too many places, regulation appears to be discouraging supply rather than improving standards.
"There's also a wider concern around how the sector is being portrayed. The rise in stigma linked to recent political rhetoric around migrant housing and changing neighbourhoods risks further undermining public understanding of HMOs and their value. If we allow fear and misinformation to shape housing policy, we'll end up penalising the very model that helps many people find stable, sociable and affordable places to live. This is bad for tenants, bad for communities, and bad for the nation's economy.
"We need to see more support for responsible HMO development across all regions, not just for investors, but for the people who rely on this form of housing to get by. Without that, the imbalance we're seeing today may only deepen, and that's a risk the country can't afford to take."
