UK: Southampton City Council is pressing ahead with plans to expand licensing for houses in multiple occupation (HMOs), as this property type sees rapid growth across the UK student rental market.
A newly proposed additional licensing scheme would affect around 6,500 properties in nine city wards, including Portswood, Bevois and Swaythling.
If approved, the scheme will be applied to addresses with three or more occupants from two or more households. Larger HMOs with five or more occupants from three or more households are already covered by national mandatory licensing.
The new measure, which can lead to enforcement action for non-compliance, would apply to nine wards in the city where the majority of the homes are located.
According to a cabinet report, the schemes would have a positive effect by allowing local authorities to deal with issues of poor property condition, poor management and anti-social behaviour.
The study attributes the change to a combination of affordability, flexibility, and a desire for shared living.
The HMO market is currently valued at an estimated £78 billion, with over 180,000 properties nationwide. Annual rental income from the sector exceeds £6.3 billion, according to research by Vesta.
The proposed licensing in Southampton is part of a broader effort to raise housing standards, particularly in high-density student neighbourhoods. The council said the new rules would ensure properties meet safety and management requirements. Eighty-six per cent of respondents to a public consultation were in favour of the proposals.
If approved by cabinet, the new licensing scheme would come into effect on September 1 for five years and it would see between 2,500 and 3,000 smaller HMOs and HMOs within private PBSA blocks become subject to licensing.
Highlights:
• Southampton City Council is pressing ahead with plans to expand licensing for houses in multiple occupation (HMOs)
• If approved, the scheme will be applied to addresses with three or more occupants from two or more households. Larger HMOs with five or more occupants from three or more households are already covered by national mandatory licensing
• The move comes as new figures by the data platform StuRents show that 77 per cent of UK students now rent HMOs, marking a shift away from purpose-built student accommodation (PBSA).
