In percentage terms, Sandwell in the West Midlands showed the fastest growth, with applications rising by 964% from 28 in 2018 to 298 in 2024. Other areas highlighted for growth included West Lancashire (886%), Tower Hamlets (750%), Guildford (742%) and Waltham Forest (481%).
“We’re witnessing a major evolution in the UK rental market,” said Clark Ross, managing director at Just Landlords. “An increasing number of landlords are moving away from traditional lets in favour of HMOs, to help meet the growing demand for flexible, affordable housing solutions.
“We’re also seeing an interesting geographical shift in investment. While London remains a cornerstone of the market, there has been huge growth in the Midlands and the North, with some areas seeing application numbers increase by nearly 1,000% since 2018.”
Alongside the rise in applications, the data suggested tighter oversight. Council inspections of HMOs were up by 83% since 2018, while enforcement actions — including improvement notices and prosecutions — increased by 180%.
The dataset also pointed to uneven outcomes between local authorities. Blackpool and Fenland recorded refusal rates above 50% of annual applications, at 70% and 51% respectively. Sandwell’s refusal rate was listed at 48%, followed by Armagh (26%) and Norwich (24%).