Houses in multiple occupation (HMOs) have seen a 40% increase in licence applications since 2018 as landlords respond to growing demand for flexible and affordable housing, research from Just Landlords found.
The data, gathered through Freedom of Information (FoI) requests to local councils, showed that annual HMO applications have risen from 41,162 in 2018 to a record 57,725, with more than 57,000 applications submitted in the last year alone.
The research also revealed notable regional variation in demand.
Edinburgh emerged as the UK’s HMO capital, with an average of 5,158 applications each year, followed by Oxford and Bristol.
London boroughs such as Southwark and Tower Hamlets also featured prominently, reflecting continued strong demand in urban centres.
Sandwell recorded the highest increase, with applications rising by 964% between 2018 and 2024, while West Lancashire saw growth of 886%.
Significant increases have also been recorded in Guildford and Waltham Forest, pointing to a broader geographical shift in landlord investment beyond traditional hotspots.
The study also points to a significant increase in regulatory oversight as the sector grows.
Council inspections of HMOs have risen by 83% since 2018, while enforcement actions, including improvement notices and prosecutions, have increased by 180%.
Some areas, such as Blackpool and Fenland, recorded particularly high application refusal rates, while enforcement activity is notably high in Lewisham, Wandsworth and Liverpool.
Clark Ross, director at Just Landlords, said: “While our findings reveal an environment of tightened regulation, this should be seen as a positive step for the market.
“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.”
