A troubling trend has emerging across UK cities in the form of illegally shared houses. The properties operate without proper licenses, putting thousands of tenants at risk in overcrowded and unsafe conditions.
Recent investigations reveal a thriving black market in shared housing, where properties accommodate far more residents than legally permitted. In some London areas, unlicensed properties may outnumber legal ones by three to one. One borough estimates having 3,000 licensed shared houses but suspects that between 6,000 and 9,000 actually exist.
These properties, known as Houses in Multiple Occupation (HMOs), require council licenses to ensure they meet safety standards for gas, electricity, and fire protection. Without oversight, residents face dangerous living conditions.
Dangerous living conditions
Undercover investigations have exposed shocking realities. Among these, adults were found sleeping on bare mattresses in bunk beds, black mould covered walls and ceilings, there were rat infestations and severely overcrowded spaces. In one property, ten men shared rooms designed for far fewer occupants, with some beds lacking mattresses entirely.
The consequences can be fatal. A 2023 fire in east London claimed the life of Mizanur Rahman when eighteen people were found to be crammed into a two-bedroom flat. The blaze started from a faulty e-bike battery charging beneath a bunk bed. The landlord was charged £90,000 in fines for housing violations.
Who’s affected
These properties do not just house single renters. Entire families often occupy single rooms in shared houses, waiting in queues to use bathrooms and kitchens while dealing with unsanitary conditions. Some residents, like those studying or working in food delivery, have few housing alternatives due to limited finances or immigration status.
Detection challenges
Identifying illegal properties proves difficult for overwhelmed council enforcement teams. Data analysis suggests hundreds of unlicensed properties exist in areas where councils list only dozens of legal ones. Between 2021-2023, only one-third of renter complaints resulted in official inspections.
New technology attempts to identify suspect properties by analysing financial data to find addresses linked to multiple unrelated residents, though this method has limitations.
Legal consequences and rights
Tenants in unlicensed properties face particular risks, including sudden eviction and lock changes. However, they may be entitled to reclaim up to a year’s rent through legal action if a landlord is found to have violated licensing laws.
Looking forward
The Renters’ Rights Bill aims to create a national database of rental properties, helping councils identify and regulate illegal operations. Housing advocates say the problem requires urgent attention, as thousands remain trapped in potentially dangerous accommodations.
While most landlords operate legally, enforcement agencies struggle with capacity issues, allowing unscrupulous operators to exploit vulnerable tenants. The true extent of this hidden housing crisis remains unknown, but evidence suggests it’s growing rapidly across urban areas.