The UK is facing a housing crisis that seems to be growing more dire each year. With an increasing population and a dwindling supply of affordable housing, it’s becoming harder for many people to find a place to call home. While the government has made efforts to address the issue, including a promise to deliver 1.5 million new homes by the end of the current Parliament, there is a less talked-about but highly viable solution to the problem: converting empty homes into Houses of Multiple Occupation (HMOs).
Many homes across the UK lie empty, often for years at a time. These homes could be repurposed and provide much-needed housing options, especially in cities where space for new development is limited. By converting these vacant properties into HMOs, local councils could quickly add thousands of homes to the housing stock without building a single new one. This could be the key to unlocking a fast, practical solution to the housing crisis, benefiting both tenants and landlords.
What Are HMOs?
Before diving into the specifics of how empty homes can be converted into HMOs, let’s first define what an HMO is. A House of Multiple Occupation or HMO, is a property that is rented out to multiple tenants who share common areas such as kitchens and bathrooms. Typically, these properties are rented by people who are not part of the same household, like students, young professionals, or workers who need affordable accommodation.
HMOs are particularly popular in urban areas, especially near universities and large employment hubs, as they provide an affordable and flexible housing option. For landlords, HMOs often represent a more profitable way to rent out properties, as multiple tenants can be accommodated, generating more rental income than traditional single-household rentals.
The Growing Problem of Empty Homes
The number of long-term vacant homes across the UK is on the rise. According to the latest data from the UK government (2024), there are currently 264,884 long-term vacant homes in England, a 1.3% increase from the previous year. This is a concerning figure, especially when considering the demand for housing in many regions.
What’s more alarming is that many of these homes have been empty for years, contributing to urban decay and lost potential. In fact, some of these vacant homes are located in areas with severe housing shortages, where there’s an urgent need for affordable accommodation. The North West, for example, leads the way with 38,894 empty homes, followed closely by London (38,386) and the South East (35,869). The East of England has seen the sharpest rise in vacancies, with a significant year-on-year increase of 8.2%.
Given the number of empty homes scattered across the country, it’s clear that something needs to be done to make use of these properties, particularly in areas where demand for housing is at an all-time high.
Turning Empty Homes into HMOs: A Practical Solution
One of the most effective ways to address the housing crisis without having to rely on new construction is to convert these empty homes into HMOs. Property management platform COHO suggests that by transforming vacant properties into HMOs, more than 5,000 additional homes could be added to the housing supply—without breaking ground on a single new build.
In densely populated cities, where space for new development is limited, repurposing existing housing stock could offer a powerful and immediate boost to the housing supply. This approach is particularly beneficial for local councils and planning authorities, as it allows them to utilise the existing infrastructure and resources, while also addressing the needs of the local population.
The potential impact is significant. If the same proportion of HMOs were applied to the country’s long-term empty homes as exists in the general housing stock (around 1.8%), over 5,000 new HMOs could be created. In London, for instance, applying the HMO proportion to the city’s 38,386 vacant homes would add around 1,473 HMOs to the market. Other regions would also see notable increases, with Yorkshire and the Humber gaining 591 HMOs, the South East 568, and the North West 526.
The Benefits of Converting Empty Homes into HMOs
Converting vacant properties into HMOs offers several key benefits that can help alleviate the housing crisis.
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Quick and Cost-Effective Solution
The process of converting an empty home into an HMO is far quicker and less expensive than constructing a new building from scratch. The conversion process generally involves reconfiguring the layout, adding additional bathrooms and kitchens, and ensuring that the property meets health and safety regulations. This means that local councils can provide much-needed housing in a fraction of the time it would take to build new homes.
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Increased Housing Supply
By repurposing empty homes, councils can add a substantial number of homes to the market, helping to address the shortage of affordable housing. As mentioned earlier, converting even a small portion of the long-term vacant homes across the UK could add thousands of properties to the housing supply. This would provide more options for renters and ease the pressure on the housing market.
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Reduced Urban Blight
Empty homes often become a target for vandalism and crime, contributing to urban blight. By converting these homes into HMOs, local councils can help revitalise neighbourhoods, improving both the physical and social fabric of communities. A well-maintained HMO can bring life back to an area, reduce crime, and improve the overall appeal of the neighbourhood.
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Affordable Housing Options
HMOs offer a more affordable alternative to traditional single-family rentals, making them ideal for tenants who may not be able to afford to rent an entire house on their own. For many young professionals, students, and low-income workers, HMOs are an essential source of affordable housing. By converting empty homes into HMOs, local councils can help meet the needs of these groups, offering them a roof over their heads at a price they can afford.
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Economic Benefits for Local Communities
In addition to providing more housing, converting empty homes into HMOs can have a positive impact on local economies. HMOs create jobs in construction, property management, and maintenance, providing opportunities for local businesses and workers. Furthermore, increased demand for services like shops, restaurants, and public transport can stimulate the local economy.
Overcoming the Challenges
While the idea of converting empty homes into HMOs is promising, there are a few challenges to consider. For one, not all empty homes are suitable for conversion. Some may require extensive repairs or be located in areas that aren’t ideal for multiple tenants. In such cases, additional investment may be needed to bring these properties up to standard.
Moreover, local councils and planning authorities must work closely with property owners to ensure that the conversion process is feasible and that the properties meet all necessary legal and safety requirements. There may also be opposition from local residents, particularly in more affluent areas where HMOs are seen as undesirable.
However, with the right planning and support, these challenges can be overcome. The key is for local councils to view the conversion of empty homes into HMOs as a long-term solution to the housing crisis, and for property owners to recognise the potential benefits of repurposing their vacant properties.
How Prem Property Supports HMO Conversions and Housing Solutions
At Prem Property, we understand the critical need for innovative housing solutions, especially in today’s ever-growing housing crisis. As a guaranteed rent solution provider and HMO management company based in Birmingham, we are well-equipped to assist property owners, landlords, and councils in converting empty homes into Houses of Multiple Occupation (HMOs).
Here’s how we can support you in turning vacant properties into profitable, sustainable homes for those in need:
Expert Property Management
Prem Property offers a comprehensive property management service that ensures all aspects of your HMO conversion are handled efficiently and professionally. From initial consultation and planning to the final stages of property setup and tenant management, we take care of the details so that you can enjoy a hassle-free experience. Our expert team has a deep understanding of the legal requirements and safety standards that HMOs must meet, ensuring that your property is up to code and ready for tenants.
Guaranteed Rent Scheme
One of the major challenges of owning an HMO is the uncertainty around rental income. At Prem Property, we offer a guaranteed rent solution that gives you peace of mind. Whether your property is fully occupied or not, we ensure you receive a fixed monthly rent, removing the risk of void periods. This is particularly valuable for property owners who may be hesitant to convert empty homes into HMOs but are concerned about potential income fluctuations.
HMO Licensing and Compliance
Converting a property into an HMO requires adherence to strict regulations and licensing requirements. Prem Property’s extensive experience in managing HMOs means we are fully equipped to handle all the necessary compliance tasks for you. From securing the proper HMO licenses to ensuring your property meets fire safety regulations, we manage the entire compliance process to help you stay within the law while maximising your property’s potential.
Maximising Property Potential
Empty homes often have untapped potential, and Prem Property excels in unlocking this. We can assist in the renovation and conversion of vacant properties into fully functioning HMOs, transforming them into high-quality, attractive living spaces that meet the needs of tenants. Whether it’s refurbishing the kitchen and bathrooms or redesigning the layout to optimise space for multiple occupants, we’ll help ensure that your property is both functional and desirable.
Tenant Sourcing and Management
Once your property has been converted into an HMO, we help you source and manage tenants. With our extensive network and experience in the local market, we can find reliable tenants who are looking for affordable, shared accommodation. Our tenant vetting process ensures that you have responsible and reliable tenants, reducing the risk of rent arrears or damage to your property. Moreover, our ongoing property management services ensure that your tenants are well taken care of, and any issues that arise are swiftly addressed.
Consultation and Support for Local Councils
For local councils looking to convert empty homes into HMOs as part of their housing strategy, Prem Property offers consultation services to guide the process. We can work closely with councils to identify suitable properties, help with the planning and conversion stages, and ensure that the final outcome meets both legal standards and the needs of the local community. Our experience in the HMO sector means we can provide valuable insights and strategies for creating affordable housing options in areas where they are most needed.
Final Thoughts: Unlocking the Potential of Empty Homes
The housing crisis in the UK is a complex challenge, but converting empty homes into HMOs is one of the most practical and effective solutions available. At Prem Property, we specialise in managing the entire process, from the initial conversion to tenant management, ensuring that property owners can provide much-needed housing without the stress and uncertainty that often comes with it.
Whether you’re a property owner looking to repurpose a vacant property or a local council seeking innovative solutions to the housing crisis, Prem Property can help make the transition to HMOs seamless and profitable. With our guaranteed rent scheme, expert management, and commitment to compliance, we’re ready to assist you in addressing the housing needs of today and the future. Let us help you unlock the full potential of your empty homes, turning them into sustainable, income-generating properties that make a real difference in the community.