The number of essential houses in multiple occupation (HMOs) in north-west England is on the decline, new data has revealed. According to figures compiled by property experts Searchland, the region has seen a notable drop in these housing units over the past three years, following a period of significant growth.
HMOs, where unrelated individuals share common facilities like kitchens and bathrooms while occupying separate rooms, saw their numbers nearly triple between 2013 and 2018. However, the latest data indicates a downturn, with the number of licensed HMOs slowing, despite there being nearly 9,500 in the region last year.
The National Residential Landlords Association (NRLA) has sounded an alarm, cautioning that operating these homes has become “significantly more difficult” due to new regulations, high interest rates, inconsistent licensing rules, and punitive tax policies. These challenges have driven many landlords to exit the market, exacerbating the shortage of “desperately needed” housing.
Wendy Whittaker-Large, an HMO managing agent, highlighted the bureaucratic burdens deterring potential investors. “More and more paperwork and more and more administration” are significant obstacles, she said.
The NRLA acknowledged the importance of licensing for ensuring the safety of rented properties but urged the government to act swiftly to support landlords. This, they argued, would help boost the availability and affordability of homes.
In 2018, legislation was introduced requiring all HMOs housing five or more people from two or more households to be licensed by local authorities. This legislation mandates landlords to adhere to specific conditions and submit to property inspections, which the government claims will “raise standards.”
Despite these intentions, high HMO concentrations in some areas have been linked to increased anti-social behaviour and fly-tipping, raising concerns about housing standards. Marianne Marsh, a long-time resident of Stoneycroft in Liverpool, described witnessing a surge in fly-tipping
since more houses in her area were converted into HMOs. “It has definitely escalated,” she said, pointing to piles of discarded furniture and appliances blighting her neighbourhood.
Stoneycroft ward councillor Steve Radford echoed these sentiments, noting that fly-tipping and anti-social behaviour have led to a “demoralized community.” Radford, leader of the Liberal Democrat group, criticized the prevalence of “absentee” landlords and claimed Liverpool City Council was failing to enforce HMO regulations adequately.
In response, the council emphasized its commitment to maintaining standards. “HMOs with five or more occupants are subject to mandatory licensing, and we inspect them for conditions, standards, and safety,” a council spokesperson stated. They encouraged tenants to report issues and highlighted their support for landlords through guidance on property standards. The council also noted recent prosecutions of two letting agents for poor HMO management and the establishment of a specialist team to investigate rogue landlords and agents.
Jack Benson, a 22-year-old insurance broker living in an HMO in Garston, Liverpool, illustrated the personal impact of the HMO situation. Forced to live in shared housing due to the high cost of renting a private flat, he said, “I’ve got this professional picture in my head of what I am at work, and then I come home and that picture’s just completely gone. It just brings me right back down to earth.”
A Department for Housing spokesperson reaffirmed the government’s stance on the issue. “Everyone deserves to live in a safe and decent home,” he said, emphasizing efforts to “crack down on rogue landlords.” The government has implemented measures including civil penalties of up to £30,000 and rent repayment orders for various offenses to empower councils in tackling unlicensed HMOs.
As the north-west grapples with the decline in HMOs, the balance between regulation and availability remains a critical challenge for both policymakers and the community.