New data from planning intelligence platform Searchland reveals a national decline in the number of new Houses in Multiple Occupation (HMO) licences issued by local planning authorities across Great Britain – though regional figures show strong growth in select areas.
In total, 23,947 new HMO licences were granted in 2024, down from 25,445 in 2023.
This represents a year-on-year decrease of 5.9%, or 1,498 fewer approvals across the country.
Despite the national drop, several local planning authorities recorded sharp increases in new licence issuance, suggesting shifting dynamics in local rental markets and planning enforcement.
OXFORD LICENCE GROWTH
Oxford saw the most significant year-on-year increase, with 1,823 new HMO licences granted in 2024 – an increase of 1,341 compared to 2023. The City of Bristol also recorded a substantial rise, with 1,588 licences issued, up 838 on the previous year.
Other notable increases were seen in Lambeth (+759), Hammersmith & Fulham (+544), and Charnwood (+533), highlighting renewed activity in both metropolitan and regional centres.
LAMBETH HOTSPOT
Lambeth became the UK’s leading local authority for new HMO licences in 2024, with 2,515 approvals accounting for 10.5% of the national total.
Other high-volume areas include Oxford (1,823), Bristol (1,588), Haringey (1,158), Southwark (1,087), and Hammersmith & Fulham (1,007) – each issuing over 1,000 new licences during the year.
PLANNING AND COMPLIANCE
The data reflects a patchwork of local policy decisions, market pressures, and compliance regimes, with some LPAs increasing scrutiny or formalising licensing in response to housing demand and rental market dynamics.
While the national trend points to a slight contraction, rising licence volumes in certain urban centres may indicate efforts to bring more rental stock into regulated frameworks or support for higher-density housing models.
RISK-BASED LICENSING
Hugh Gibbs, Co-founder of Searchland, says: “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.”
