Black Country borough branded UK's 'HMO hotspot' after seeing 10-fold increase in hostel applications

A Black Country borough has been branded the UK’s ‘HMO hotspot’ after seeing a 10-fold increase in the number of licence applications for hostel accommodation.

Figures obtained under the Freedom of Information Act revealed that the number of licence applications for ‘houses of multiple occupation’ rose by 964 per cent from 2018 to 2024, by some margin the highest increase in the country.

The figures show that Sandwell had just 28 HMO applications in 2018, but by 2024 this had risen to 298 - the highest number in the region.

By contrast, South Staffordshire had zero applications in both years.

However Sandwell is also one of the toughest authorities to get an HMO application approved, with 48 per cent being rejected.

The borough has also seen applications for some of the biggest HMOs in the region.

Last year the council rejected plans for a 36-bedroom hostel in West Bromwich High Street, while plans to convert a chemist’s shop into a 14-bedroom HMO in Queen’s Road, Smethwick, are awaiting a decision after attracting 90 objections.

Houses of multiple occupation (HMOs) are properties where bedrooms are sub-let to individual tenants, who share communal rooms such as kitchens and bathrooms.

Last year Councillor Amrita Dunn pledged to fight the proliferation of HMOs in Sandwell.

"The unchecked growth and poor regulation of houses in multiple occupation have had a serious impact on neighbourhoods across Sandwell," said the Conservative opposition leader.

The research, commissioned by insurance provider Just Landlords, showed vast differentials in the number of applications received by different local authorities.

In Lichfield, just one application was received in both 2018 and 2024, and in Cannock Chase just eight applications were received in 2018, rising to 11 in 2024.

However in Walsall, 125 applications were received in 2018, and this had risen to 216 by 2024.

Councillor Simran Cheema, Labour member for Willenhall South on Walsall Council, said her ward was now 'saturated' with the buildings, which caused problems with parking and anti-social behaviour.

“There is a growing sense of frustration among residents regarding the number of HMO planning applications in Willenhall," she said.

Stafford actually saw a fall of 33 per cent, from 43 in 2018 to 29 in 2024.

Shropshire also saw a fall, from 30 applications in 2018 to 25 six years later.

Telford & Wrekin saw a substantial increase, from 72 in 2018 to 171 in 2024, while Wyre Forest saw a 127 per cent rise from 11 to 25 over the same period.

Dudley and Wolverhampton Council did not respond to the request under the Freedom of Information Act.

Edinburgh, Oxford and Bristol - all cities with large student populations - were the authorities with the greatest number of applications, at 5,158, 2,458 and Bristol and 1,491.

While Sandwell had the biggest increase in the number of applications, it was followed by West Lancashire, which saw an 886 per cent rise, Tower Hamlets, where applications increased by 750 per cent, and Guildford where they rose by 742 per cent.

Clark Ross, managing director of Just Landlords, said the figures reflected a major evolution of the rental market.

“An increasing number of landlords are moving away from traditional lets in favour of HMOs, to help meet the growing demand for flexible, affordable housing solutions,” he said.

“While London remains a cornerstone of the market, there has been huge growth in the Midlands and the North,” he said.

He added that council inspections of HMOs have risen by 83 per cent since 2018, while enforcement actions, including improvement notices and prosecutions, have jumped by 180 per cent.

A spokesman for Sandwell Council said: “Our high level of refusals – in the top three nationally according to these comparisons – demonstrates we are robust in applying checks on landlords and properties before issuing a licence.

“Over 40 per cent of Sandwell’s licensed HMOs are smaller shared properties that do not require planning permission and also would not have been regulated before the council introduced discretionary additional licensing in 2024.

“The main reason for the significant rise in HMO licence applications in Sandwell is our proactive introduction of greater regulation, to ensure properties are managed to a good standard for both tenants and neighbours.”

He said demand for affordable housing vastly outweighed supply across the country.

“Our measures are aimed at ensuring quality housing provision that meets the needs of tenants and the wider community,” he said.

The spokesman said the additional licensing regulations were introduced in Sandwell in 2024, beyond what was required by the Housing Act.

“This means many more landlords of smaller shared properties in Sandwell now have to apply for a licence that wasn’t previously required,” he said.

“Additional licensing gives us better oversight of many of the existing HMOs in the borough in addition to any new HMOs. This extension has been critical in raising standards, reducing overcrowding and improving management of properties that were previously unregulated. Licensing ensures that, once approved, minimum standards are in place.”