New research from COHO, the HMO (House in Multiple Occupation) management platform, has revealed the true scale of the UK’s booming shared living sector: a staggering £1.4 billion in monthly rental income generated across England and Wales. The analysis breaks down which postcode areas are reaping the highest rewards, with London dominating the rankings — but high-performing markets also stretch as far as Bristol, York, and Cardiff.
A Housing Market Heavyweight
According to COHO’s data, there are 394,945 licensed HMOs across England and Wales. With the average room in a shared property renting for £711 per month, a typical five-bedroom HMO generates around £3,557 monthly.
This makes shared living not just a stopgap for students or young renters, but a multi-billion-pound industry that plays a key role in the national housing landscape.
London Leads the Way
With its high rents and dense population, London alone accounts for £918.4 million of the monthly HMO rental income — over 65% of the national total. The capital is home to several high-performing postcodes:
NW1 (Camden/Regent’s Park):
9,681 HMOs
Average rent per room: £1,220
Total monthly HMO income: £59 million
E5 (Clapton/Hackney):
12,061 HMOs (the UK’s highest concentration)
Average rent: £949
Total income: £57.2 million
Other lucrative London postcodes include:
SE1 – £42.7m
N15 – £37.3m
IG1 – £36.1m
EN3 – £30m
N17 – £28.5m
IG3 – £27.6m
Beyond the Capital: Strong Regional Markets
While London dominates, several non-London postcodes are also proving highly lucrative for landlords and property investors:
Bristol (BS16):
6,908 shared homes
Monthly income: £25 million
York (YO10): £10.6m
Brighton (BN2): £8.7m
Bath (BA2): £8.5m
Cardiff (CF24): £8.2m
Oxford (OX4): £6.8m
Leeds (LS6): £6.4m
Manchester (M14): £5.7m
A Changing Demographic
COHO’s CEO Vann Vogstad says the sector’s evolution is being fuelled by young professionals, not just students or transient renters:
“The numbers speak for themselves: over £1.4bn in monthly rental income from nearly 400,000 licensed HMOs… What was once seen as the preserve of students has evolved into one of the most lucrative and dynamic sectors of the UK market.”
He adds that modern renters are seeking more than affordability — quality, lifestyle, and community are key drivers. This shift in demand has opened new doors for landlords and investors who are willing to innovate and offer high-spec, well-managed properties.
What This Means for Investors
The data offers a clear signal: shared living is no longer a niche option. With reliable monthly income streams, rising demand, and a new generation of renters fueling occupancy rates, HMOs are increasingly seen as a resilient and profitable investment class.
Whether in London or regional hubs like Bristol and Leeds, the future of the HMO market looks promising — provided landlords continue to meet rising tenant expectations.
