The number of new houses of multiple occupation (HMOs) delivered in key Midlands and northern cities has increased by 26% since 2020, according to research from LandTech.
Nationally the number of HMOs declined by 3% on average, but locations such as Birmingham, Leeds, Stoke on Trent, Chester and Cheshire West, Knowsley in Liverpool, Nottingham, Sheffield and Trafford in Manchester, recorded an average 26% increase in HMO registrations.
Wigan, Hyndburn, Chorley, Solihull, South Derbyshire and Rugby also saw significant rises in the number of HMOs.
LandTech’s research shows the number of new HMOs delivered in the South East fell 7% over the last few years with London suffering a 5% drop. The biggest falls were in Brighton & Hove (down 33%), Windsor and Maidenhead (down 43%) and Eastbourne (down 50%).
Jonny Britton, co-founder of LandTech, said: “The data and timeframe available on new HMOs doesn’t paint an accurate picture which indicated a small overall decline, but we can clearly see many cities in the Midlands and North of England increasing properties repurposed for this class use.
“The pandemic had an obvious effect on slowing down a sector requiring individuals to co-habit houses, and the South East where properties are generally more expensive for developers to acquire from the outset.
“There is every good reason why Midlands and the Northern cities are bucking the small national decline in new HMO registrations – with the general increased costs of building materials, continued hike in interest rates hammering mortgage holders, developers large and small need to find better value properties, and these regions answer to that call.”
