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Introduction

This information has previously been included in the ‘Housing hazards and licenses’ report. Please see previous publications of Housing hazards and licenses for earlier years.

HMO licensing was introduced under the Housing Act 2004 (UK legislation) to help ensure that HMOs are well managed.

Local authorities are responsible for the mandatory licensing of larger, higher risk HMOs (with a minimum of three stories and five occupants). Local authorities also have the discretion to extend licensing to other categories of HMOs to address particular problems that may exist in smaller properties or in particular geographical areas.

Main points

Between 31 March 2017 and 31 March 2021, the number of mandatory licenses decreased from 2,973 to 2,443. In the most recent three-year period, the number of mandatory licenses has increased, with 3,050 mandatory licenses recorded at 31 March 2024.

Between 31 March 2018 and 31 March 2022, the number of additional licenses declined (from 6,056 to 4,332). In the most recent year, the number of additional licenses has increased to 4,989.

Figure 1: Number of licensed HMOs by license type, 31 March 2015 to 31 March 2024 [Note 1]

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Description of Figure 1: Line graph showing that the number of mandatory and additional licenses peaked at 31 March 2018.

Source: Hazards and Licenses returns from local authorities

[Note 1] Data not collected for March 2020 due to the impact of the COVID-19 pandemic.

[Note 2] Includes estimated figures for Neath Port Talbot.            

At 31 March 2024, the local authorities with the highest number of licensed HMOs were Cardiff (3,072) and Swansea (1,807), both large urban areas with high levels of private rented dwellings and student populations.

Figure 2: Number of estimated and known HMOs, 31 March 2015 to 31 March 2024

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Description of Figure 2: Clustered bar chart showing that in the past 10 years the number of estimated HMOs has fluctuated between 18,167 and 19,587 while the number of known HMOs has fluctuated between 14,070 and 15,247.               

Source: Hazards and Licences returns from local authorities                                                                         

[Note 1] Data not collected for March 2020 due to the impact of the COVID-19 pandemic. 

[Note 2] Includes estimated figures for Neath Port Talbot.

At 31 March 2024, local authorities estimated there were a total of 18,454 HMOs in Wales, a 2% increase on the previous year. This was accompanied by an increase in the number of HMOs known to local authorities (from 14,434 in March 2023 to 15,016 in March 2024). At 31 March 2024, 81% of estimated HMOs were known to local authorities.

Cardiff and Swansea reported the highest numbers of estimated HMOs in Wales (7,000 and 2,500 respectively). In Cardiff and Swansea, a high proportion of estimated HMOs were known to the local authority (92%). In contrast, Denbighshire reported the third highest number of estimated HMOs (1,351) with a much smaller proportion of these HMOs known to the local authority (16%).

Contact details

Statistician: Holly Flynn
Email: stats.housing@gov.wales

Media: 0300 025 8099