HMO landlords are abandoning the rental sector as tax threats, regulatory burdens and political stigma create a perfect storm. COHO data shows availability crashed by more than half in some locations.

According to Vann Vogstad (pictured), boss of the house share management platform, the exodus is a disaster for rental supply. Nationally, HMO availability fell 15.2% between June and September 2025.

Bradford recorded the steepest decline at 59.1%, Leeds 55.4%. Manchester fell 33.3%, Brighton 32.9%, Leicester 24.6%, Nottingham 23.7%, Sheffield 21%, although London increased 4.7%.

Vogstad says: “Any data that points towards a declining supply of shared houses should be a real cause for concern for Downing Street. The HMO sector is a vital tool in the nation’s battle against the housing drought, but the sector is facing hard battles from two fronts.”

We can’t be surprised now if swathes of HMO landlords decide that enough is enough and leave the sector altogether.”

Labour’s proposed National Insurance on rental income could cost landlords an extra £2.18 billion, and Vogstad is warning: “This in particular, is going to be a huge blow to HMO landlords whose rental income per property tends to be greater than your standard buy-to-let.

“We can’t be surprised now if swathes of HMO landlords decide that enough is enough and leave the sector altogether.”

There is also a growing political stigma around HMOs, as they are ever more closely linked to asylum seeker’s housing.

Vogstad says: “The entire sector is being unfairly maligned on the Right of the political spectrum, placed at the centre of some kind of batty migrant conspiracy theory. We already know that this is causing planning councils to shy away from approving new shared living schemes, but is it now also causing HMO landlords to cut their losses and sell up?”

Compliance burdens

And the third factor is the Renters’ Rights Bill and its compliance burdens.

According to Vogstad: “The incoming Renters’ Rights Bill looks like it is going to be given the green light, full steam ahead, without proper consideration given to the ways in which it disincentivises landlords.

“If this is indeed happening, there’s no prize for guessing what comes next. Further rental supply shortages, which in turn means a massive hike in rent prices. Everybody loses.”