10:15 AM, 10th May 2022, About 3 weeks ago 3
A constant barrage of regulations, restrictions, responsibilities and Selective Licencing has driven an overall decline of supply in England’s HMO sector by 3% from 511,278 properties in 2019/2020 to 497,884 in 2020/21. These figures come from market analysis performed by Octane Capital.
In 2018, the UK government introduced new regulations which insist that a Houses of Multiple Occupancy (HMO) licence is required for all properties that are occupied by five or more people who are not members of one family. Previously, a licence was only required for properties of three storeys or more in which five or more people live and are not members of one family. What’s more, in order to obtain a licence, all rooms in an HMO must exceed a minimum size and can only sleep a certain number of people over 10 years old.
As a result of this and many further regulations each of which can command a fine of up to £30,000, the number of HMOs on the market has decreased with many landlords choosing to offload their buy-to-let stock instead of negotiating yet more hurdles due to legislative changes.
This overall national decline has been driven by the London market where the level of total HMOs has declined by -13% – by far the biggest reduction of all regions.
In the capital, 11 different boroughs have reported a drop, with the biggest coming in Ealing where HMOs have declined by -59%, followed closely by a -58% decline in Lambeth. Redbridge has seen its numbers halved, and Barnet’s decline sits at -37%. The number of HMOs has also declined considerably in Greenwich (-34%), Enfield (-30%), Wandsworth (-18%), Croydon (-13%), Hillingdon (-10%), Merton (-2%), and Tower Hamlets (-1%).
|Table shows estimated number of HMOs in England for years 19/20 and 20/21 alongside annual % change|
|Region||Est number of HMOs 2019-20||Est number of HMOs 2020-21||Change 2019-20 vs 2020-21|
|East of England||37,128||37,298||0.5%|
Yorkshire and The Humber
|Table shows estimated number of HMOs in London for years 19/20 and 20/21 alongside annual % change|
|Location||Est HMOs 2019-20||Est HMOs 2020-21||Change 2019-20 vs 2020-21|
|Barking & Dagenham||192||800||317%|
|Kensington & Chelsea||4,000||8,244||106%|
|Hammersmith & Fulham||3,000||3,700||23%|
|Richmond upon Thames||97||102||5%|
|City of London||100||100||0%|
|Kingston upon Thames||4,800||4,800||0%|
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