Shared living is becoming an increasingly significant part of the rental market, both as a housing solution and as a major economic contributor. Our recent analysis of licensed HMOs across England and Wales estimates that the sector generates around £1.4 billion in rental income each month.
There are currently approximately 394,945 licensed HMOs operating across England and Wales. With the average room rent sitting at £711 per month, a typical five-bedroom shared property can generate an estimated £3,557 in monthly income, demonstrating the sector’s ability to deliver strong rental performance while providing multiple housing opportunities within a single property.
London Leads the Shared Living Market
London remains the dominant force in shared living, generating approximately £918.4 million in monthly rental income. Several postcode areas stand out for their concentration of shared housing. For example, NW1 generates more than £59 million per month, while E5, which has the highest number of licensed HMOs, produces over £57 million in monthly rental income.
These areas benefit from strong transport links, employment opportunities, and continued demand from renters seeking affordable access to central locations.
Growing Strength in Regional Cities
Outside London, shared living continues to play an important role in supporting rental supply. Bristol is one of the strongest regional markets, with the BS16 postcode generating more than £25 million in monthly rental income.
Other cities including York, Brighton, Bath, Cardiff, Oxford, Leeds, and Manchester also show strong levels of shared living activity, reflecting it’s ability to meet demand across a variety of housing markets.
A Growing Part of the Housing Landscape
By creating multiple tenancies within single properties, shared living provides an efficient way to increase housing availability while maintaining strong rental performance. With demand for flexible and affordable housing continuing to rise, the shared living sector is likely to remain an important part of the UK’s rental market.
Shared living is becoming an increasingly significant part of the rental market, both as a housing solution and as a major economic contributor. Our recent analysis of licensed HMOs across England and Wales estimates that the sector generates around £1.4 billion in rental income each month.
There are currently approximately 394,945 licensed HMOs operating across England and Wales. With the average room rent sitting at £711 per month, a typical five-bedroom shared property can generate an estimated £3,557 in monthly income, demonstrating the sector’s ability to deliver strong rental performance while providing multiple housing opportunities within a single property.
London Leads the Shared Living Market
London remains the dominant force in shared living, generating approximately £918.4 million in monthly rental income. Several postcode areas stand out for their concentration of shared housing. For example, NW1 generates more than £59 million per month, while E5, which has the highest number of licensed HMOs, produces over £57 million in monthly rental income.
These areas benefit from strong transport links, employment opportunities, and continued demand from renters seeking affordable access to central locations.
Growing Strength in Regional Cities
Outside London, shared living continues to play an important role in supporting rental supply. Bristol is one of the strongest regional markets, with the BS16 postcode generating more than £25 million in monthly rental income.
Other cities including York, Brighton, Bath, Cardiff, Oxford, Leeds, and Manchester also show strong levels of shared living activity, reflecting it’s ability to meet demand across a variety of housing markets.
A Growing Part of the Housing Landscape
By creating multiple tenancies within single properties, shared living provides an efficient way to increase housing availability while maintaining strong rental performance. With demand for flexible and affordable housing continuing to rise, the shared living sector is likely to remain an important part of the UK’s rental market.
