Number of new HMO licence approvals falls by 6%

The latest internal data from Searchland reveals that the number of HMO licences being granted by local planning authorities is on the decline, although there hasn’t been a significant increase across areas such as Oxford, Bristol and parts of London.

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, said, “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.”