Mish Liyanage – Property Expert

A growing debate over shared housing

Across the UK, local councils are grappling with how to manage the rapid growth of Houses in Multiple Occupation (HMOs). The debate is especially active in towns such as Warrington, where new planning proposals aim to tighten controls on further conversions.

While concerns about overcrowding, parking, and community balance are understandable, there’s a real danger that restrictive measures could reduce access to affordable rental homes — exactly when the demand for flexible, lower-cost accommodation has never been higher.

HMOs: part of the housing solution, not the problem

HMOs play a vital role in today’s rental market. For students, young professionals, and key workers, they often represent the only affordable route into good-quality accommodation close to work or study.

However, policy discussions often focus solely on the perceived negatives — ignoring the social and economic function HMOs fulfil. Limiting supply without addressing demand risks pushing more people into unsuitable or expensive alternatives.

Why blanket restrictions miss the point

Councils introducing borough-wide caps or Article 4 Directions may believe they’re protecting local communities, but broad restrictions can unintentionally:

• Reduce affordability by shrinking supply and driving up rents.
• Discourage responsible landlords who invest in well-managed, compliant HMOs.
• Stifle regeneration, as shared accommodation often helps revitalise underused housing stock.

A one-size-fits-all approach treats all HMOs as a nuisance rather than recognising that standards and management quality vary enormously across operators.

Towards a smarter, evidence-based policy

Instead of relying on restrictions, a more balanced framework would combine data, quality control, and accountability:

• Target problem areas, not entire towns. Use local data to pinpoint streets or clusters genuinely affected by over-concentration.
• Raise standards, don’t cap numbers. Enforce clear, consistent rules on safety, space, and amenity. Reward compliant operators.
• Consult stakeholders early. Engage landlords, letting agents, tenants, and residents before policy changes take effect.
• Align with national reforms. Any local regulation should complement the government’s ongoing rental sector reforms and drive up overall quality.

Finding the balance

It’s easy to demonise HMOs, but the housing market is interconnected. Reduce one stream of supply, and pressure builds elsewhere. If the goal is to maintain sustainable, inclusive communities, councils must design policies that protect affordability while addressing genuine local issues.

A balanced approach will support responsible landlords, safeguard tenants, and ensure towns like Warrington remain accessible for a diverse range of residents — not just those who can afford premium rents.

The way forward?

Managing HMO growth isn’t about choosing between neighbourhood harmony and affordability. It’s about achieving both through evidence-led, fair regulation.

By working collaboratively — with data, transparency, and clear communication — local authorities can ensure that shared housing continues to serve the people who need it most, while keeping our communities thriving and cohesive.