Our analysis shows that the HMO market in England and Wales is worth £78 billion, generating annual rental income of £6.3 billion.
Using ONS dwellings data*, we estimate there are 182,554 HMO properties across the two nations. Most of these are small HMOs (74%) shared by three or four tenants, while 26% are large HMOs with five or more tenants.
Where HMOs are located
London holds the largest share of the HMO market, accounting for 33.9% of all properties. It is followed by:
- South East: 13.6%
- South West: 10.7%
- North West: 8.4%
- Yorkshire & Humber: 7.4%
Market size by property value
- The average HMO in England and Wales is worth £293,197, bringing the total HMO stock value to just over £78 billion.
- London dominates with an average HMO value of £660,227, pushing its combined stock to £40.9 billion.
- The South East follows with an average HMO price of £436,146, creating a total regional value of £10.8 billion.
- Other key totals: South West (£7.9 billion), North West (£4 billion).
Market size by rental income
- The average annual rental income for an HMO is £29,715, generating a combined sector income of £6.3 billion.
- In London, HMOs earn an average of £40,169 each, totalling £2.5 billion in annual rent.
- The South East outperforms London at a property level, with each HMO averaging £46,042 a year, delivering a combined total of £1.1 billion.
- South West HMOs generate £747.3 million annually, North West £419.2 million.
Regional variations are striking. Yorkshire & Humber HMOs have the lowest average value (£196,014) and second-lowest average rent (£21,208), yet their larger market means stronger totals than Wales and the North East. In contrast, the East Midlands commands the lowest average rental income per property (£20,223) but its higher property values push the region’s HMO stock to £2.9 billion.
What this means for property managers
HMOs are already a major force in the rental market, but there’s untapped value. Our earlier research found that tenants are willing to pay up to 10% more rent for a better HMO experience — especially when it comes to compatibility with housemates.
Further premiums are achievable through:
- Higher quality finishes
- Stronger landlord communication
- Efficient financial processes
- Faster maintenance management
COHO’s view
Vann Vogstad, COHO Founder and CEO, said:
“HMOs generate over £6 billion in rent every year, but landlords are still leaving money on the table. Rising tenant expectations are raising the bar. With considered, well-managed HMOs, there’s scope not only to meet demand but to command stronger rents and increase overall market value.”
Our analysis shows that the HMO market in England and Wales is worth £78 billion, generating annual rental income of £6.3 billion.
Using ONS dwellings data*, we estimate there are 182,554 HMO properties across the two nations. Most of these are small HMOs (74%) shared by three or four tenants, while 26% are large HMOs with five or more tenants.
Where HMOs are located
London holds the largest share of the HMO market, accounting for 33.9% of all properties. It is followed by:
- South East: 13.6%
- South West: 10.7%
- North West: 8.4%
- Yorkshire & Humber: 7.4%
Market size by property value
- The average HMO in England and Wales is worth £293,197, bringing the total HMO stock value to just over £78 billion.
- London dominates with an average HMO value of £660,227, pushing its combined stock to £40.9 billion.
- The South East follows with an average HMO price of £436,146, creating a total regional value of £10.8 billion.
- Other key totals: South West (£7.9 billion), North West (£4 billion).
Market size by rental income
- The average annual rental income for an HMO is £29,715, generating a combined sector income of £6.3 billion.
- In London, HMOs earn an average of £40,169 each, totalling £2.5 billion in annual rent.
- The South East outperforms London at a property level, with each HMO averaging £46,042 a year, delivering a combined total of £1.1 billion.
- South West HMOs generate £747.3 million annually, North West £419.2 million.
Regional variations are striking. Yorkshire & Humber HMOs have the lowest average value (£196,014) and second-lowest average rent (£21,208), yet their larger market means stronger totals than Wales and the North East. In contrast, the East Midlands commands the lowest average rental income per property (£20,223) but its higher property values push the region’s HMO stock to £2.9 billion.
What this means for property managers
HMOs are already a major force in the rental market, but there’s untapped value. Our earlier research found that tenants are willing to pay up to 10% more rent for a better HMO experience — especially when it comes to compatibility with housemates.
Further premiums are achievable through:
- Higher quality finishes
- Stronger landlord communication
- Efficient financial processes
- Faster maintenance management
COHO’s view
Vann Vogstad, COHO Founder and CEO, said:
“HMOs generate over £6 billion in rent every year, but landlords are still leaving money on the table. Rising tenant expectations are raising the bar. With considered, well-managed HMOs, there’s scope not only to meet demand but to command stronger rents and increase overall market value.”
