"The shared living sector is a housing market heavyweight. What was once seen as the preserve of students and transient renters has evolved into one of the most lucrative and dynamic sectors of the UK market"
- Vann Vogstad - COHO
New research from HMO management platform, COHO, estimates that the shared living market in England and Wales generates £1.4bn in rental income each month. But which postcode areas produce the highest earnings from shared living?
COHO analysed the estimated number of licensed HMO properties in England and Wales, along with the average monthly rent per room, to calculate the total market value based on properties with five bedrooms.
The average monthly rent for a room in a shared living property is £711, meaning a five-bedroom home can bring in about £3,557 per month.
Further data shows there are 394,945 licensed HMOs in England and Wales, pushing total monthly rental income beyond £1.4bn.
London dominates the market, with its HMOs generating £918.4m per month, followed by the South East (£140.5m), South West (£106.8m), North West (£60m), and Yorkshire & Humber (£56.4m).
Which postcodes generate the most shared living income?
Given London’s status as the largest and most lucrative shared living market, it’s no surprise that it leads the list of top-earning postcodes.
At the top is NW1, with 9,681 shared living properties charging an average of £1,220 per room each month, producing over £59m in monthly rental income.
East London’s E5 postcode is the busiest house share area, with an estimated 12,061 licensed HMOs. At an average rent of £949 per room, E5 brings in more than £57.2m monthly.
Other leading London postcodes include SE1 (£42.7m), N15 (£37.3m), IG1 (£36.1m), EN3 (£30m), N17 (£28.5m), and IG3 (£27.6m).
Outside London, Bristol’s BS16 postcode leads, with 6,908 shared homes generating over £25m in monthly income.
Other top non-London postcodes include York’s YO10 (£10.6m), Brighton’s BN2 (£8.7m), Bath’s BA2 (£8.5m), Cardiff’s CF24 (£8.2m), Oxford’s OX4 (£6.8m), Leeds’ LS6 (£6.4m), and Manchester’s M14 (£5.7m).
Vann Vogstad, founder and CEO of COHO, said, “The numbers speak for themselves: over £1.4bn in monthly rental income from nearly 400,000 licensed HMOs across England and Wales. The shared living sector is a housing market heavyweight. What was once seen as the preserve of students and transient renters has evolved into one of the most lucrative and dynamic sectors of the UK market.”
He added, “This evolution is being driven by a new generation of renters, most notably young professionals at the beginning of their careers who are showing a great appetite for the social and community benefits provided by shared living, while also craving a high-quality, sophisticated home.”
Vogstad continued, “As the shared living demographic broadens and becomes more discerning, the sector’s revenue potential goes through the roof. Our own previous research has already proven that tenants will pay more to live in good quality homes with well-matched housemates, and the future scope for further value is limited only by the landlord's creativity and ability to provide a rental experience above and beyond the rest of the market.”
