House in multiple occupation (HMO) landlords are retreating from the market, slashing shared housing options for tenants across England. Fresh analysis from HMO management platform COHO shows a 15.2% national drop in available house shares between June and September 2025, despite only a 3.3% rise in tenant demand. For landlords, this tightening supply hints at upward pressure on rents—and opportunity for those who stay in the game.
Sharpest falls in northern cities
COHO found that Bradford suffered the steepest decline, with availability plunging 59.1%, closely followed by Leeds at 55.4%. Other key markets also shrank: Manchester down 33.3%, Brighton 32.9%, Leicester 24.6%, Nottingham 23.7% and Sheffield 21%. London bucked the trend with a modest 4.7% increase, reflecting its unique, high-demand market.
“It’s a perfect storm,” said Sarah Thompson, a Leeds-based letting agent. “Landlords are selling up because of regulatory headaches, while student demand in September soaked up remaining stock. Rents on the rooms that remain are already rising by about £85 a month.”
Policy pressure driving exits
Industry bodies argue that government policy is accelerating the exodus. The National Residential Landlords Association warns the forthcoming Renters’ Rights Bill could add costly red tape. Labour’s proposal to tax rental income more heavily has also spooked investors.
Vann Vogstad, founder and CEO of COHO, said the data should be “a real cause for concern on Downing Street,” adding: “The HMO sector is vital in the fight against the housing drought, but unfair political attacks and looming tax changes are prompting landlords to cut their losses and sell up.”
Student demand only part of story
Seasonal factors, particularly the late-summer scramble by university students, explain some of the stock squeeze in cities such as Leeds, Manchester and Nottingham. But analysts say that alone cannot account for the scale of the decline, given that demand actually fell in many cities—Sheffield saw demand dip 3.7% despite a 21% stock drop.
Mark Patel, who owns three HMOs in Nottingham, says he has delayed plans to expand: “I’d need to spend thousands more to meet possible new compliance rules. Until there’s clarity, I’m standing still—and I know plenty who are selling.”
Editor’s view
For landlords prepared to navigate regulation, the shrinking HMO supply could strengthen rental yields over the next 12 months. But if policymakers fail to balance tenant protections with incentives for investment, the sector risks a deeper supply crunch that benefits no one.
