HMO licence approvals drop by 6% across Britain

The number of new House in Multiple Occupation (HMO) licences approved across Great Britain fell by 6% in 2024, research reveals.

According to Searchland’s latest data, local planning authorities issued 25,445 licences in 2023, but this figure dropped to 23,947 last year, a reduction of 1,498.

Despite the national downturn, certain regions bucked the trend.

Oxford’s local planning authority led with a big rise, approving 1,823 new licences, an increase of 1,341 compared to the previous year.

Need more HMOs

The firm’s co-founder, Hugh Gibbs, said: “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.”

He added: “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.”

Areas where applications rose

Other areas with big rises in licence approvals include Bristol with the granting of 1,588 licences, up by 838.

Lambeth had 2,515 approvals while and Hammersmith and Fulham had 1,007 licenses approved.

Lambeth accounted for 10.5% of the national total, making it the leading hotspot for HMO licences in 2024.

Other boroughs, including Haringey (1,158) and Southwark (1,087), also surpassed the 1,000-licence mark.