Lambeth has one of the highest concentrations of houses in multiple occupation (HMOs) in the country, according to official ONS housing figures.
Analysis by property firm Property Buyers Today found that 5,919 of Lambeth’s 146,411 homes are classed as HMOs.
The figure means HMOs account for 4.04% of the borough’s housing, placing Lambeth third in the ranking behind Oxford, where the proportion was 4.52%, and Wandsworth, at 4.29%.
Lambeth also recorded the third highest total number of HMOs among the ten areas included in the ranking.
Only Bristol, with 6,904, and Wandsworth, with 6,456, had more.
A HMO is defined by the ONS as a privately-rented dwelling occupied by at least three unrelated tenants who form more than one household and share facilities such as a kitchen, bathroom or toilet.
Properties occupied by three or four unrelated tenants are classified as small HMOs, while those occupied by five or more are considered large HMOs.
They are commonly used as student accommodation and shared housing for young professionals and lower-income renters.
The findings come as councils across England seek greater control over the growth of shared housing, amid concerns about overcrowding, poor property conditions and the effect of high concentrations of HMOs on surrounding communities.
Property Buyers Today said the growing level of regulation, combined with rising costs, was causing some landlords to reconsider their position in the rental market.
Saif Derzi, managing director of Property Buyers Today, said: “There’s been a noticeable shift in landlord sentiment over the last 12 months, with landlords selling off at least 2,000 student accommodation beds across the UK in that time, ahead of the introduction of the Renters’ Rights Act.
“Landlords seem to be looking at the direction of the market, the increase in costs and regulation coming in, and many believe that now is the right time to sell up.”
However, he argued that tighter rules could benefit professional landlords by forcing poorer-quality operators out of the market and increasing demand for properties that meet licensing and safety standards.
He said experienced HMO operators were already expected to consider matters such as fire safety, room sizes, deposit protection, maintenance, tenancy documents, and complaints handling.
“The Renters’ Rights Act has not killed HMO investment,” he added. “It has changed the rules of participation and standards.
“HMOs will continue to serve a clear need in the rental market.
“Many tenants want affordable, well-located, flexible accommodation with bills included, good communal spaces and a professional management experience.”
The analysis also placed Hackney, Tower Hamlets, Hammersmith and Fulham and Islington among the ten areas with the highest proportion of HMOs. Exeter, Cambridge and Bristol also appeared in the ranking.
The figures were calculated by comparing the estimated numbers of small and large HMOs in each local authority area with that area’s total number of houses.
Featured image credit: Daria Shevtsova
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