Regional disparities emerge as HMO numbers soar in some areas and collapse in others

Despite the number of houses in multiple occupation (HMOs) growing in England, regional disparities reveal a dramatic decline in certain locations.

Research by HMO management platform COHO reveal there are an estimated 472,823 HMO properties across England after an annual increase of 2.3%.

However, in other parts of the country, HMO numbers have collapsed by 50%.

Dramatic decline in some areas of the country

According to COHO, the West Midlands leads the way, with an 8.8% increase in HMO numbers over the past year. London (5.4%) and the North East (3.2%) also recorded above-average growth.

In stark contrast, the East of England has seen HMO numbers fall by 4%, while the South East reported a drop of 3.3%.

East Devon has seen the most dramatic growth, with a 523% surge in HMO numbers, while Wandsworth (381.6%), South Staffordshire (300%), Wolverhampton (233.3%) and Medway (190.1%) are among a group of eight local authorities where HMO supply has more than doubled in just one year.

However, in other parts of the country, the number of HMOs have dramatically declined with Welwyn Hatfield recording a 72.5% fall, while Watford saw a 65.6% decline. Other significant drops were reported in Walsall and Sefton (both 50%), Reading (37.6%), North Tyneside (37.1%) and Stevenage (36.7%).

HMOs play a vital role in the housing market

COHO Founder and CEO, Vann Vogstad, said: “While it’s encouraging to see overall growth in the HMO sector, the stark regional disparities raise important questions about access, policy, and perception.

“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.”

Mr Vogstad adds a stigma around HMOs has also caused numbers to drop.

He said: “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.”