Councils report more inspections and enforcement as shared housing expands beyond London
Applications for houses in multiple occupation (HMO) licences have increased by 40% since 2018, as landlords shift towards shared housing in response to demand for lower-cost rental options, data analysis by Just Landlords has revealed.
Using information supplied by local authorities under Freedom of Information requests, the landlord insurance provider reported annual HMO licence applications rising from 41,162 in 2018 to 57,725 in 2024 – the most recent year covered by the data.
The pattern was not uniform across the country. Edinburgh recorded the highest average volume, with 5,158 applications a year. Oxford followed with 2,458, then Bristol (1,491), Southwark (1,412) and Tower Hamlets (1,394).
In percentage terms, Sandwell in the West Midlands showed the fastest growth, with applications rising by 964% from 28 in 2018 to 298 in 2024. Other areas highlighted for growth included West Lancashire (886%), Tower Hamlets (750%), Guildford (742%) and Waltham Forest (481%).
“We’re witnessing a major evolution in the UK rental market,” said Clark Ross, managing director at Just Landlords. “An increasing number of landlords are moving away from traditional lets in favour of HMOs, to help meet the growing demand for flexible, affordable housing solutions.
“We’re also seeing an interesting geographical shift in investment. While London remains a cornerstone of the market, there has been huge growth in the Midlands and the North, with some areas seeing application numbers increase by nearly 1,000% since 2018.”
Alongside the rise in applications, the data suggested tighter oversight. Council inspections of HMOs were up by 83% since 2018, while enforcement actions — including improvement notices and prosecutions — increased by 180%.
The dataset also pointed to uneven outcomes between local authorities. Blackpool and Fenland recorded refusal rates above 50% of annual applications, at 70% and 51% respectively. Sandwell’s refusal rate was listed at 48%, followed by Armagh (26%) and Norwich (24%).
On enforcement activity, Lewisham recorded 288 actions a year on average, with Wandsworth at 146. Liverpool and Denbighshire were both listed at 141, followed by Camden at 117.
“While our findings reveal an environment of tightened regulation, this should be seen as a positive step for the markett,” Ross said. “Higher standards protect the reputation of the sector and ensure that dedicated, professional landlords aren’t being undercut by sub-standard operators.
“As the sector continues to grow, the most successful landlords will be those who treat their compliance and insurance as the bedrock of their business strategy.”
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