Big rise in HMOs – are they damaging housing markets?
Summary
New research highlights a rising concentration of HMOs in some of England’s least affordable cities, with Oxford and Cambridge among the highest-ranked locations outside London. The article also notes increasing use of Article 4 Directions and HMO licensing, alongside landlord sales ahead of the Renters’ Rights Act, as the market adjusts to tighter regulation and higher standards.
Why it matters
Surveyors may see increased demand for advice on HMO suitability, compliance, and local planning constraints in high-pressure urban markets. The trend also has implications for valuation, housing quality assessments, and understanding how regulation may affect supply and rental yields.
Key points
- HMOs account for almost one in 20 homes in some England cities.
- Oxford has the highest reported HMO concentration in the article at 4.52% of homes.
- Councils are increasingly seeking Article 4 Directions to control new HMO development.
- An estimated 142 councils use discretionary licensing for smaller HMOs, alongside national licensing for larger HMOs.
- The article links the Renters’ Rights Act to a shift toward higher standards and reduced supply of compliant rooms.
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