How Changing Student Trends at Teesside University Are Reshaping Middlesbrough’s HMO Market

For years, the HMO (House in Multiple Occupation) market in Middlesbrough has been a goldmine for landlords, largely fuelled by demand from students attending Teesside University. With a steady influx of young renters, properties were snapped up quickly, and landlords enjoyed solid yields with minimal effort.

However, the landscape is shifting. Student expectations are evolving, new accommodation options are entering the market, and local councils are cracking down on rogue landlords who fail to meet legal and safety requirements. The result? Some HMO landlords are thriving, while others are struggling to keep up.

If you're a landlord, property investor, or letting agent in Middlesbrough, now is the time to understand these changes, adapt your strategy, and stay ahead of the curve. Let’s explore the latest student trends and what they mean for the HMO market.

1. The Changing Student Demographic in Middlesbrough

A decade ago, student housing in Middlesbrough followed a simple pattern:
✔️ Large student houses with multiple occupants
✔️ Shared kitchens and bathrooms
✔️ Basic furnishings and minimal landlord involvement

But today’s students are a different breed. They have higher expectations, better financial options, and a growing number of choices when it comes to accommodation.

So, what’s changed?

🔹 Rise of Purpose-Built Student Accommodation (PBSA) – More students are choosing professionally managed, all-inclusive buildings with en-suite rooms, social spaces, and gyms. This means traditional student HMOs must compete on quality and service.

🔹 Higher Expectations for Housing Quality – Many students today are willing to pay a little extra for better standards. Properties that feel neglected—old furniture, damp walls, slow Wi-Fi—are now struggling to attract tenants.

🔹 International Student Growth – Teesside University has been expanding its global reach, attracting more students from overseas. Many prefer modern, secure accommodation over shared HMOs.

🔹 Shorter Tenancies & Increased Flexibility – Unlike before, where students locked into 12-month leases, more students now prefer shorter, flexible tenancy options. This means landlords may need to rethink their leasing strategies.

These changes are reshaping the HMO market, making it more competitive and forcing landlords to upgrade their properties and improve their management.

2. The Growing Crackdown on Rogue Landlords

Another big shift in the Middlesbrough HMO market is tighter council regulations and enforcement against non-compliant landlords.

Over the past few years, Middlesbrough Council has stepped up efforts to identify, fine, and even ban landlords who fail to meet required standards.

📌 Recent Cases of Rogue Landlords Being Fined

• One landlord was fined over £15,000 after failing to obtain the correct HMO licence, leaving tenants in unsafe conditions.

• Another was prosecuted for ignoring fire safety laws, failing to install proper fire doors and alarms, putting tenants at risk.

• A landlord in the area was banned from renting properties altogether due to repeated breaches of safety and hygiene standards.

Many of these landlords operated under the assumption that council inspections were rare and that students wouldn’t complain. But with more students aware of their rights, reports of unsafe or poorly maintained properties have soared—and councils are responding aggressively.

Common Compliance Failures Leading to Fines

❌ Missing HMO Licences – Any property rented to five or more unrelated tenants needs an HMO licence. Failure to obtain one can result in fines of up to £30,000.

❌ Fire Safety Breaches – All HMOs must have fire doors, smoke alarms, clear emergency exits, and fire extinguishers. Neglecting this not only risks fines but puts tenants in real danger.

❌ Overcrowding & Poor Conditions – Properties must meet minimum room sizes, have proper heating, and be free from hazards like damp and faulty wiring.

❌ Deposit Scheme Violations – Landlords must protect deposits in a government-approved scheme. Failure to do so can result in compensation claims from tenants.

For landlords, the message is clear: cutting corners can lead to massive financial penalties and reputational damage. If you’re renting out an HMO, compliance is non-negotiable.

3. How HMO Landlords Can Adapt & Stay Competitive

So, with changing student demands and stricter regulations, how can landlords ensure their HMOs remain profitable?

The answer lies in modernisation, compliance, and marketing.

✔️ Upgrade Your HMO for Modern Tenants

• Invest in Quality Furnishings – Students are tired of worn-out sofas, creaky beds, and peeling paint. A small investment in modern decor, comfortable furniture, and fresh paint makes a huge difference.

• Boost Internet Speed – A fast, reliable Wi-Fi connection is now a basic necessity for students. Upgrading to fibre-optic broadband can give your HMO an edge over the competition.

• Improve Security – With safety being a top concern, CCTV, secure entry systems, and proper locks can make your property far more attractive to tenants.

✔️ Stay 100% Compliant

• Ensure your HMO licence is up to date if required.

• Schedule regular safety checks for gas, electricity, and fire compliance.

• Conduct routine property inspections to address maintenance issues before they become major problems.

✔️ Market Your Property Effectively

• Use Professional Photography – Listings with high-quality images get more views and enquiries than those with blurry, dimly lit photos.

• Highlight Key Features – Emphasise features students want: bills included, super-fast Wi-Fi, modern kitchen, close to university.

• Leverage Social Media & Student Groups – Many students find accommodation through Facebook groups, Instagram, and student forums. Engaging in these spaces can help you attract tenants faster.

4. What Does the Future Hold for Middlesbrough’s HMO Market?

While change can be challenging, it also presents new opportunities.

🔹 Premium HMOs Will Dominate – As student expectations rise, low-quality HMOs will struggle. The landlords who invest in modern, compliant, high-quality properties will see higher occupancy rates and better yields.

🔹 Stronger Tenant Rights & Regulations – The trend towards stricter council oversight will continue. Smart landlords will stay ahead of compliance laws to avoid fines and legal trouble.

🔹 Increased Professionalisation of HMO Management – More landlords are recognising the value of professional property management to handle tenant sourcing, maintenance, and compliance.

Final Thoughts: Adapt & Succeed in a Changing Market

The Middlesbrough HMO market isn’t dying—it’s evolving. While outdated properties and non-compliant landlords are being pushed out, opportunities remain strong for those who adapt.

If you’re an HMO landlord in Middlesbrough, now is the time to:
✅ Upgrade your properties
✅ Ensure full compliance with regulations
✅ Market strategically to attract the right tenants

By making these changes, you can stay profitable, avoid fines, and future-proof your investment in the competitive Middlesbrough rental market.

Need Help Managing Your HMO?

If you're looking to stay compliant, attract better tenants, and maximise your rental income, get in touch today for expert advice on HMO management in Middlesbrough, Newcastle, Durham and Darlington. 🚀