31/08/2026
HMO planning refusals have more than doubled since 2021, from 590 to 1,203 last year, even though applications only grew 87%. Approval rates slipped from around 68% to 63-65%. [Property118]
Meanwhile room demand is at record levels. In Bootle, where average room rents sit under £500 a month, more than 12 renters compete for every room. West Bromwich has 8 per room, nine minutes from Birmingham. Richmond averages over £1,000 a room and demand is still climbing. The hottest demand is in commuter towns, not city centres. [Property118]
And councils are tightening the supply side too: Article 4 directions, which strip permitted development rights for HMOs, are in force in an estimated 75-80 English councils, with Harrow and Warrington the latest. [Property118 via NRLA]
So here is the squeeze. The planning system is cutting the supply of new HMOs at exactly the moment record numbers of renters are hunting for rooms. Where are tenants supposed to live?
I do not have a neat answer. But the numbers say the rooms niche is structurally undersupplied — which is why rents in commuter towns are climbing. The landlords and agents who can deliver compliant, well-managed rooms in those towns are the ones who win.
What are you seeing in your town? Are HMO applications getting refused near you? Drop your postcode and your experience below.
📊 Visual: hmo-rooms-squeeze-31aug26.svg. HMO planning refusals 590 (2021) → 1,203 (2025); Article 4 in 75-80 councils; 12+ renters per room in Bootle. [Property118]