Thousands of England’s long-term vacant homes could be transformed into Houses in Multiple Occupation (HMOs), offering an underused but immediate solution to the housing crisis, according to new analysis from HMO management platform COHO.
COHO estimates that nearly 5,000 additional HMOs could be created by repurposing just a fraction of the 264,884 homes in England that have stood empty for six months or more.
That figure has risen 1.3% year-on-year, with the North West (38,894), London (38,386), and the South East (35,869) home to the highest numbers of long-term vacancies.
The East of England saw the sharpest regional increase, up 8.2% compared with 2023, bringing its total to 28,103 empty homes.
NEW HOMES TARGET
The findings come as the newly elected Labour government targets the delivery of 370,000 new homes a year.
Yet with housing delivery constrained by planning delays, construction costs, and land shortages – especially in urban centres – COHO argues that converting disused housing stock into shared living accommodation could offer a faster, lower-cost route to boosting supply.
COHO is calling for planning reforms and regeneration strategies that actively support the conversion of empty homes into HMOs, helping to meet housing targets, reduce blight, and create more liveable, connected neighbourhoods.
DORMANT ASSETS
COHO Founder and Chief Executive Vann Vogstad says: “Local councils and planning authorities must rethink how we utilise the homes we already have.
“Long-term empty properties are a dormant asset. Converting even a small share into HMOs would not only ease housing pressures quickly but also reinvigorate neighbourhoods.”
HMOs currently represent just 1.8% of all dwellings across England. If this same proportion were applied to the stock of long-term vacant properties, it would equate to 4,889 new HMOs, according to COHO’s estimates.
In London, where HMOs account for a larger 3.8% share of the housing market, the scope for conversion is even greater. Applying that ratio to the capital’s long-term vacant dwellings suggests a potential uplift of 1,473 HMOs.
UK OPPORTUNITIES
Other strong opportunities include Yorkshire & Humber (591 potential HMOs), the South East (568), North West (526), South West (450), and West Midlands (446).
The real potential could be higher still, COHO says, if local authorities embrace more ambitious targets.
Each HMO typically houses multiple tenants, meaning the conversion of just one empty property could yield two to five rental units, often in locations where demand for affordable housing is highest.
CHANGING ATTITUDES
Once stigmatised, shared living arrangements are increasingly popular among young professionals seeking sociable, flexible and affordable lifestyles in well-connected urban areas.
Vogstad adds: “In recent years we’ve seen a major upgrade in the quality of HMO accommodation, and a shift in who it serves. Today’s shared living properties are less about student digs and more about vibrant communities for working adults. By making better use of vacant stock, local authorities can help meet housing targets without a single new brick being laid.”
