Plans to control growth of HMOs must balance housing supply and rental affordability says property expert

PLANS to control the growth of HMOs in Warrington must “balance housing supply and rental affordability across the region”.

That’s the view of a leading expert responding to plans by Warrington Borough Council which has sparked much debate.
The proposals come at a time when demand for affordable rental accommodation remains high, particularly from students, young professionals, and low-income households who rely on HMO properties as their primary housing option.
Mish Liyanage, CEO of The Mistoria Group, said, “We must recognise that the growth in HMOs is a direct response to a pressing housing need, especially for students, young professionals, and low-income tenants who struggle to access affordable, quality accommodation. HMO developments, when done responsibly, have offered viable housing solutions that help alleviate local housing pressure.
That said, I do agree with the council’s concerns around poor-quality conversions, parking congestion, and community cohesion. These issues are not new and have been repeated across many towns and cities. However, blanket restrictions may penalise responsible landlords while failing to solve deeper systemic housing challenges.”
Here, Mish explains what alternative approaches could work better for Warrington.
Learning from regional examples
“What’s needed is a targeted and informed approach. Local authorities like Warrington could benefit from a ‘Quality-First’ HMO Licensing Framework that rewards compliance and penalises negligence. Other councils across the North West have implemented selective licensing schemes that target specific problem areas rather than entire markets, with varying degrees of success.
“The key is granular data analysis. Councils need to identify precisely where problems exist rather than applying borough-wide restrictions. Areas with high student populations or transport links naturally attract HMO demand, but this doesn’t automatically create community problems if properties are well-managed and properly regulated.”
Economic implications for tenants
“Any new restrictions could have unintended consequences for Warrington’s rental market. Reducing HMO supply whilst demand remains high typically drives up rents, potentially pricing out the very demographics these properties serve.
“We’re seeing pressure on rental markets across the North West. When supply is restricted without addressing underlying demand, it often results in higher costs for tenants who can least afford it.”
Practical implementation framework
“If councils introduce Article 4 directions or new planning rules, they must do so transparently, with data-led justifications, clear transition periods, and meaningful consultations with landlords, agents, and community groups. A phased implementation would allow existing operators to comply whilst preventing sudden market disruption.
“Warrington could consider introducing mandatory HMO standards that focus on space per occupant, parking provision, and waste management rather than simply limiting numbers. This approach addresses genuine community concerns whilst rewarding landlords who invest in quality accommodation.”
Aligning with national reforms:
“The private rented sector is evolving rapidly. Government initiatives like the Renters’ Reform Bill and Awaab’s Law are raising expectations for landlord accountability. In this context, local decisions must also align with national goals to create a fair, safe, and sustainable rental market.
“I encourage Warrington Borough Council to partner with experienced property firms, investors, and housing associations to shape a policy that delivers on community concerns while preserving housing supply. The goal should be creating a framework that works for residents, landlords, and tenants alike. Let’s work together to make Warrington a model for HMO regulation that’s smart, not stifling.”