Councillors in Belfast have expressed frustration over their inability to prevent landlords and developers from bulk-buying properties for conversion into houses in multiple occupation (HMOs). Despite concerns about the impact of high concentrations of HMOs on residential communities, current licensing regulations offer limited powers to restrict such developments.

Concerns over bulk purchases and HMO concentrations

Belfast Council’s licensing committee has highlighted a growing trend of ‘cash-only’ purchases in East Belfast, where multiple properties are acquired together and converted into HMOs. This approach is reportedly aimed at increasing rental returns by shifting from single-let properties to higher-yield shared accommodation.

DUP councillor Ruth Brooks noted: “This involves a number of commercially purchased properties, for example, a selection of maybe seven random properties within residential areas, which would be purchased as a portfolio, then would be specifically put on the market to achieve higher rental rates as HMOs than as single let.” She added, “I am acutely aware that in Titanic there has been an increase in cash-only offers, and it is really now moving from single-let properties to (landlords) trying to get a higher rate per bedroom.”

The rise in HMOs, particularly in areas such as the Holylands and Stranmillis, has led to repeated complaints about anti-social behaviour, reflecting community concerns about the social impact of these housing concentrations.

Licensing rules and overprovision limits

According to reports, current HMO licensing regulations do not allow councils to refuse licences solely on the grounds of overprovision, limiting local authorities’ ability to control the number of HMOs in a given area. While new applications can be rejected if local thresholds are exceeded, many streets already surpass these limits.

The policy sets a 20% cap on HMOs and apartments within designated housing management areas, with a 10% cap outside these zones. However, concentrations in parts of the Holylands reportedly exceed 90%, far beyond the intended limits.

A council licensing officer explained that overprovision assessments consider the number and capacity of HMOs in an area, alongside housing need and waiting list data. The officer also highlighted that younger tenants, particularly those on Universal Credit, often rely on shared housing, making HMO accommodation their only viable option.

Ongoing review and policy challenges

Licensing checks focus on management standards, financial capacity, and whether properties meet physical requirements. Despite this, housing management areas remain under review as part of Belfast’s local development plan, with ongoing work to address HMO concentrations.

The current regulatory framework leaves councils feeling ‘powerless’ to stem the bulk-buying trend and manage the social consequences of high HMO densities, especially in popular student and rental hotspots.

What this means for landlords

For landlords, the existing licensing environment presents both opportunities and challenges. The demand for HMOs remains strong, particularly among younger tenants and those on Universal Credit, supporting a viable rental market for shared accommodation. However, the scrutiny on management standards and the potential for future policy changes mean landlords must maintain high compliance standards to secure and retain licences.

Landlords considering bulk purchases should be aware of community concerns and the possibility of evolving regulations aimed at controlling HMO concentrations. Engaging proactively with local authorities and adhering to licensing requirements will be essential to navigate this complex landscape.

Source: Based on reporting from Belfast Live

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/