Written by Hamish McLay – background for Planning Matters podcast
Podcast directed and produced by Gareth Wax

In a housing market stretched to its limits, Houses in Multiple Occupation – or HMOs – are quietly doing some heavy lifting. Often misunderstood or dismissed as low-end rental stock, today’s HMOs are actually playing a vital role in supporting both social housing needs and a growing preference for more sociable, communal ways of living.

With housing costs rising and supply lagging behind demand, HMOs offer one of the most adaptable and affordable housing solutions on the table. But while they’re helping plug the gaps, they’re also facing increasing scrutiny – and, in some areas, resistance.

Let’s take a closer look at how HMOs are shaping up to be part of the answer to the UK’s housing crisis.

What is an HMO, and why do they matter?

An HMO is a property rented out by at least three people who aren’t from the same household but share facilities like a kitchen or bathroom. Think of them as shared houses – often occupied by students, young professionals, or people on lower incomes.

The appeal is simple: HMOs make it possible for multiple tenants to share rent, bills, and space, creating a more affordable option in cities and towns where housing is increasingly out of reach.

But the benefits don’t stop at affordability. They also support flexibility – a vital feature for people in temporary jobs, moving between locations, or just starting out. And when well-managed, they foster a sense of community that’s often lost in solitary flats.

Sociable, not just social

The modern HMO isn’t just about squeezing people into a space – it’s about creating homes where people can live affordably without giving up on quality or connection.

There’s a new generation of co-living HMOs springing up, with stylish shared kitchens, fast Wi-Fi, garden spaces, and even communal lounges. Some go beyond housing needs, building in wellbeing features like shared yoga spaces, community meals, and resident apps.

This kind of sociable housing is particularly popular with younger renters who value both independence and connection. It reflects a lifestyle choice, not just a financial necessity.

Helping councils house people in need

There’s also a quieter but vital role that HMOs are playing – supporting local authorities with housing those in greatest need. Councils across the country use HMOs to provide short-term or supported accommodation, particularly when social housing waiting lists are long and budgets are tight.

In areas where demand for one-bedroom or smaller flats outstrips supply, HMOs step in. They’re also used for supported living arrangements, offering managed spaces for people with complex needs who aren’t ready to live alone.

In these contexts, HMOs are often operated by charities, housing associations, or experienced providers working closely with local services. When managed responsibly, they provide dignity and stability to people at turning points in their lives.

But are HMOs under threat?

Despite all this, many councils are tightening the rules around HMOs. Through Article 4 directions, some local authorities now require planning permission to convert a property into an HMO – even if it’s a small one.

Licensing schemes are also being expanded. While they do improve safety and standards, they can also add financial and administrative pressure, particularly for smaller, independent landlords who make up a big slice of the HMO market.

In some areas, it’s clear that councils are favouring larger corporate providers who can afford to absorb the extra costs and meet higher compliance thresholds. That raises concerns about a shift away from local, community-based HMO provision – and the risk of pushing smaller landlords out altogether.

What good HMO housing looks like

Let’s be clear: not all HMOs are created equal. Poorly maintained and overcrowded HMOs can cause problems for tenants, neighbours, and councils alike. But the solution isn’t to phase out HMOs – it’s to raise the bar.

A well-managed HMO is a win-win: safe, decent accommodation for tenants, and sustainable income for landlords. Good landlords invest in soundproofing, fire safety, tenant vetting, and regular maintenance. Many join accreditation schemes or work with letting agents who specialise in shared living.

With the right support, HMOs can meet high standards without pricing people out.

A vital piece of the housing puzzle

HMOs might not be glamorous, but they’re incredibly important. In an age where the housing crisis touches almost everyone – from students and nurses to families and older renters – we can’t afford to overlook any solution that already works.

Rather than squeezing smaller landlords or favouring only large-scale operators, we should be making it easier for ethical, community-minded HMO providers to thrive. That means clearer regulation, fair licensing fees, and practical guidance – not more red tape.

Done right, HMOs aren’t just a fallback option. They’re a key part of the future: affordable, flexible, and community-friendly.

Live Conversation – This Tuesday at 1pm

This week’s podcast explores this very topic. Chaired by our experienced host Gareth Wax – producer, director, and no stranger to the nuance of property challenges – we’re joined live by Deborah Forbes-Harding of DMN Property Solutions.

Deborah brings over 25 years of experience in both private and public housing. A property sourcer, consultant, and coach, she’s helped countless investors and landlords build, diversify, and restructure property portfolios for financial freedom and generational wealth. HMOs are a key part of that journey, and her insights promise to be invaluable.

I’ll be joining the conversation too. Tune in Tuesday at 1pm to dig deeper into the opportunity – and tension – surrounding today’s HMO landscape.

PS:
For content enquiries: hm@searchandconveysolutions.co.uk
For podcast/media info: gareth@mphats.com