New research shows that HMOs constitute almost one in 20 properties in some England cities.
With increasing numbers of councils clamping down on HMOs, a league table has now been drawn up of those cities outside London.
| Rank | Local authorities | Number of Small and Large HMOs | Total Number of Houses | Percentage of Houses that are HMOs |
| 1 | Oxford | 2,664 | 58,980 | 4.52% |
| 2 | Cambridge | 2,243 | 56,411 | 3.98% |
| 3 | Exeter | 2,000 | 55,627 | 3.60% |
| 4 | Bristol | 6,904 | 202,815 | 3.40% |
| 5 | Nottingham | 4,151 | 134,409 | 3.09% |
| 6 | Norwich | 2,026 | 67,624 | 3.00% |
| 7 | Brighton and Hove | 3,843 | 130,838 | 2.94% |
| 8 | Newcastle upon Tyne | 3,677 | 129,553 | 2.84% |
| 9 | Lincoln | 1,197 | 45,116 | 2.65% |
| 10 | Bath and North East Somerset | 2,075 | 84,109 | 2.47% |
The highest concentrations of HMOs are largely found in some of England’s least affordable housing markets.
Oxford, which tops the ranking with 4.52% of homes classified as HMOs, had an average house price of around £475,000 (one of the most expensive outside of London), and a monthly rent of up to £1,958.
While high purchase prices can make shared accommodation one of the few affordable options for students and young professionals, Oxford council claims the city’s high concentration of HMOs has raised concerns over housing quality and the growing dominance of shared accommodation in some neighbourhoods.
Cambridge, ranked fourth, also remains one of the UK’s most expensive cities outside London.
Increasing numbers of councils are seeking government approval for Article 4 Directions, giving local authorities planning control over the creation of new HMNOs.
In addition, an estimated 142 councils have discretionary licensing for smaller HMOs as well as the national licensing scheme for larger HMOs.
A spokesperson for Property Buyers Today, which commissioned the research, says: “There’s been a noticeable shift in landlord sentiment over the last 12 months, with landlords selling off at least 2,000 student accommodation beds across the UK in that time, ahead of the introduction of the Renters Rights Act.
“Whilst some have opted to sell, the new licensing rules could in part benefit non-casual landlords by eliminating sub-standard competitors, stabilising tenant demand for high-quality properties, and driving up rental yields for professional operators, due to the overall supply of compliant rooms shrinking due to the new regulation.
“For professional HMO operators, who already consider licensing, fire safety, room size, tenant suitability, rent collection, maintenance, complaints handling, deposit protection, tenancy documentation, rent review evidence, and the overall condition of the property, the new Renters’ Rights Act is arguably the direction the market should be moving in.”
The firm adds that the Renters Rights Act has signalled a shift towards higher industry standards rather than the end of HMO investment.
