Number of new HMO licence approvals falls by -6%

New HMO licences on the decline

Searchland’s data shows last year the number of new HMO licences granted by local planning authorities (LPAs) in Great Britain fell by -1,498. While 2023 saw a total of 25,445 new licences issued, 2024 saw just 23,947 – an annual drop of -5.9%.

However, 2024 saw some LPAs significantly increase the number of new HMO licences granted, none more so than Oxford LPA where a total of 1,823 new licences marked an annual increase of +1,341 compared to 2023.

Meanwhile, new licence approvals also saw an annual  increase of more than 500 in the City of Bristol (+838), Lambeth (+759), Hammersmith & Fulham (+544), and Charnwood (+533).

HMO licence hot spots

Following this annual change, Britain’s new HMO licence hotspot is Lambeth where 2024’s total of 2,515 new licence approvals is equivalent to 10.50% of the national whole.

Oxford LPA granted 1,823 new licences and the City of Bristol granted 1,588.

Meanwhile, Haringey (1,158), Southwark (1,087), and Hammersmith & Fulham (1,007) also granted more than 1,000 new HMO licences last year.

Co-founder of Searchland, Hugh Gibbs, commented:

“There’s been a decline in the annual number of HMO licenses being granted by councils across Britain at a time when we arguably need more rental accommodation to ease the high demand from tenants.

This reduction has no doubt been driven by a greater reluctance from councils due to a move towards risk-based licensing, but it’s also fair to say that tighter regulations, particularly with regard to mandatory room sizes, may have also deterred investment.

However, not every area has seen a decline and, in fact, many regional hotspots such as Oxford Bristol and London have seen a substantial increase.”

Data tables and sources

• All data sourced from Searchland
• Full data tables can be viewed online, here