HMO occupancy rates in Ipswich have fallen. Here’s what LEA Property Solutions is doing about it.
Since LEA Property Solutions opened in Ipswich back in 2004, our shared housing portfolio has enjoyed remarkably high occupancy levels – averaging around 99% year after year.
However, the rental market in 2025 presented new challenges. Over recent months, even well-managed HMOs have seen occupancy dip for the first time in two decades, falling first to 96%, and more recently to 94%.
Landlords are understandably concerned when voids appear in what has historically been a very resilient HMO market. Our priority is to be transparent about what is changing and to demonstrate a clear, proactive plan to stay ahead.
Why HMO occupancy has dipped
There are several structural and local factors that have led even well-managed HMOs in Ipswich to see slightly lower occupancy levels in late 2025.
These changes do not mean HMOs are no longer viable, but they do underscore the importance of specialist HMO management and data-driven decision-making.
1. More competition and new stock
- Over recent years, more landlords and developers have converted properties into HMOs or house shares, attracted by strong returns and sustained room-rent levels, particularly since the town centre University campus was opened.
The council has taken steps now to reduce the number of new licenses, but it has nevertheless created a more competitive marketplace.
- In Ipswich and across the wider region, this extra supply has given tenants greater choice between newly built or refurbished co-living schemes, traditional HMOs and alternative shared options, which can translate into slightly longer re-let times for some rooms as tenants consider a breadth of different options.
2. Cost-of-living pressures on tenants
- The cost-of-living squeeze has affected house-sharing tenants as much as anyone else. Many have become more price-sensitive, with some choosing to move home, share with partners, or stay in family accommodation longer to reduce their monthly outgoings.
- This has softened demand at the margins in some shared houses, particularly where rents sit at the upper end of the local market or where bills are not included, which can result in voids that simply did not appear in previous years.
3. Changing work patterns and mobility
- Hybrid and remote working have allowed more young professionals to move out of traditional employment hubs to coastal or semi-rural locations, as long as transport and broadband remain workable.
- Ipswich still benefits from its commuter links and local employers. Still, there is now a more mobile tenant base that can relocate more easily, which contributes to higher churn in some HMOs and occasional gaps between tenancies.
4. Tighter affordability and referencing
- Across the UK, lenders, insurers and local authorities expect robust tenant selection, pushing agents and landlords to apply stricter affordability checks, right to rent verification and referencing standards.
- These safeguards protect landlords and reduce arrears risk but can mean some rooms take slightly longer to fill, as not every applicant passes the more rigorous criteria now expected in the professional HMO market.
What LEA Property Solutions is doing to protect our landlords
As the foremost dedicated HMO specialist letting agent in Ipswich, LEA Property Solutions is focused on minimising voids while preserving tenant quality and compliance for every landlord client. The strategy combines local market intelligence, proactive marketing and hands-on management tailored specifically to shared housing.
We know there are reasons why the void periods are growing. It doesn’t mean we have to be happy about it.
Here are the steps we are taking to ensure void periods stabilise and, hopefully, start to decrease as the market steadies in 2026.
1. Smarter marketing and wider tenant reach
- LEA Property Solutions promotes HMO rooms across major portals and high-traffic channels, while also tapping into local professional and student networks to reach the best-calibre sharers.
- High-quality photography, clear descriptions and emphasising key USPs – such as all-inclusive bills, fast broadband, and proximity to key employment hubs – help the right tenants find and choose these rooms quickly.
2. Data-led pricing and review
- Regular rent reviews benchmark each room against comparable HMO and house-share listings in Ipswich to keep pricing competitive without undermining overall yield.
- Where the market has softened, LEA Property Solutions will always discuss targeted price adjustments, incentives or contract tweaks with landlords to shorten void periods while still protecting long-term returns. These are the uncomfortable conversations some letting agents shy away from, but to us, it is about good, proactive management, which ultimately maximises your return in the long run.
3. Tenant retention
- Our highly experienced management team has always closely monitored our tenants internal scoring system (thanks to COHO) within our house shares so we can understand tenant satisfaction and address any issues. With the introduction of the Renters’ Rights Act 2026, fixed tenancies will be a thing of the past from May 1 so now, it is all about practices and performance to ensure retention.
- By prioritising communication, regular cleaning, swift and 24-7 maintenance (with HelpMeFix) and fair, professional handling of issues, LEA Property Solutions creates an environment where good tenants choose to stay longer, directly reducing turnover and voids.
- Securing a 4.7 star rating on Google and giving tenants confidence that the room they are renting is with a reputable agency to ensure comfortable living for them for the duration of their tenancy.
4. Strategic upgrades and presentation
- Drawing on two decades of HMO management experience, our agency advises landlords on cost-effective upgrades – from décor refreshes and replacing furniture to amenity improvements. Happy tenants stay for longer.
- This targeted improvement approach ensures each HMO competes strongly against newer stock, aligning with rising tenant expectations while keeping expenditure focused on features that materially support occupancy and rent levels.
5. Not just quality, but community
- Quality accommodation is one thing that tenants in shared housing are much more focused on, especially professionals. This means high levels of maintenance as well as smart, modern and well-conditioned décor, furnishings and appliances – and not just in the bedrooms, but in shared areas and outside spaces
- Building communities is becoming a strong focus at LEA Property Solutions. It isn’t just about the house, it is about the household – and creating a sense of home for tenants who aren’t living with family members. The right atmosphere, with tenants who are well matched, is one of the best ways to avoid the void.
This is something I have written about previously in more detail – see article here.
Staying one step ahead in the HMO market
The national HMO market remains an integral part of the UK rental landscape and continues to offer attractive returns for well-located, professionally managed properties.
In Ipswich, LEA Property Solutions continues to monitor supply, demand, regulation and tenant behaviour so that landlords can make informed decisions backed by specialist HMO insight.
For landlords who want to reduce voids, improve tenant quality and future-proof their shared houses, partnering with a dedicated HMO management expert in Ipswich is the most reliable way to protect both income and asset value in a changing market.