Grimsby, a historic town in North East Lincolnshire, is rapidly emerging as a prime location for investment in Houses in Multiple Occupation (HMOs). Traditionally, the HMO market in Grimsby has served a broad demographic, including students, professionals, and healthcare workers. With ongoing economic regeneration and significant employment growth, demand for quality rental accommodation is set to rise further.
The town’s ambitious redevelopment projects, backed by substantial government funding, are revitalising the local economy and attracting new talent. A key driver of this growth is Grimsby’s expanding renewable energy sector, which continues to generate employment opportunities. Additionally, the town is home to a university that enrolled approximately 17,000 students in 2019/20 and the Diana, Princess of Wales Hospital, a major employer with around 6,800 staff across the Trust. These institutions contribute to the increasing demand for high-quality rental housing.
Grimsby’s local authority is currently consulting on the introduction of an Article 4 Direction, which would require planning permission for new HMOs. A petition in support of these regulations, particularly in the East Marsh area, has gained traction among residents and councillors. With implementation expected in the near future, early investors could benefit before further restrictions take effect.
With its growing economy, strong rental demand, and increasing professional workforce, Grimsby presents a compelling opportunity for HMO investors looking to secure high yields in a developing market.
Article 4 Restrictions on HMOs
For the last few years Grimsby have warned that there are an increasing number of HMOs in Grimsby. In 2023 the Grimsby Housing Strategy Report stated the following:
There are an increasing number of HMO’s which are currently meeting housing need in the borough. Article 4 can be considered if an area had a neighbourhood plan which would require properties to have planning permission to convert, or for example in areas of Conservation. Recent legislative changes mean that the Council would be unable to do a borough wide Article 4 designation. Tools within the Housing Act 2004 provide powers to set up a discretionary licensing scheme. This would not prevent properties being converted to a HMO, it would only ensure when they are converted, they are up to standard and managed correctly.
North East Lincolnshire Council has initiated a public consultation to introduce an Article 4 Direction targeting the proliferation of Houses in Multiple Occupation (HMOs) in Grimsby. The directive aims to manage the density of HMOs, particularly in areas like East Marsh, to preserve community cohesion and housing standards.
While the exact boundaries are subject to final confirmation post-consultation, the proposed Article 4 Direction is expected to encompass areas with a high concentration of HMOs, notably the East Marsh area. This region has been identified due to concerns about over-saturation of HMOs and the resulting impact on local communities.
Properties already operating as HMOs before the Article 4 Direction comes into force will retain their lawful use status. However, landlords may be required to apply for a Certificate of Lawful Existing Use.
For Prospective HMO Developments, once the Article 4 Direction is active, property owners will need to obtain planning permission to convert single-family dwellings into HMOs accommodating between three and six occupants.
Following the consultation period, the council will review the feedback and, if proceeding, will confirm the Article 4 Direction. Typically, there is a 12-month notice period before the Direction becomes effective to allow property owners and investors to adjust to the new requirements. Therefore, if the Direction is confirmed in mid-2024, it is expected to come into force in mid-2025.
Whilst the implementation of Article 4 seems restriction and prohibitive for HMO investors, it does have some interesting benefits. Underlying value of HMOs always increase following the introduction of article 4 due to the best demand areas becoming saturated. Additionally rents increase in the best areas as there are less HMOs competing in the high demand locations.
Food Industry Employers
Grimsby has a well-established reputation as a key hub for the UK’s food industry, with seafood processing and food manufacturing playing a major role in the local economy. The town is home to several leading food businesses, including Young’s Seafood Ltd., which employs approximately 3,000 people and supplies around 40% of the fish consumed in the UK. As one of the largest seafood processors in the country, Young’s continues to drive employment and economic activity in the region, reinforcing Grimsby’s status as the seafood capital of Britain.
In addition to Young’s, other major seafood companies contribute to the industry’s strength, including Fastnet Fish Limited and Northcoast Seafoods Limited, both of which are based in Grimsby and focus on the processing and distribution of seafood products. These companies benefit from the town’s strategic location and strong transport links, enabling efficient supply chains to both domestic and international markets. Their continued operations ensure that seafood processing remains a dominant force in the local economy.
Beyond seafood, Grimsby’s food sector is further supported by Morrisons, which has both retail and food processing facilities in the area, as well as Bakkavor, a leading manufacturer of fresh prepared foods. 2 Sisters Food Group also operates in the region, reinforcing Grimsby’s position as a centre for large-scale food production. These businesses collectively employ a significant workforce, ensuring a steady demand for skilled and semi-skilled labour. As food production continues to evolve with technological advancements and sustainability initiatives, these companies are expected to adapt and grow, securing Grimsby’s future as a powerhouse in the UK’s food industry.
Renewable Energy Sector
Grimsby has become a key hub for the UK’s renewable energy sector, particularly in offshore wind power. Its location on the North Sea coastline makes it an ideal base for wind farm operations and maintenance, attracting major investment and creating thousands of jobs. The renewable energy industry now employs approximately 2,000 people in Grimsby, with the wider Greater Lincolnshire region supporting over 12,000 renewable energy jobs and contributing around £1.2 billion annually to the local economy. As the sector continues to expand, Grimsby is well-positioned to capitalise on further growth and investment.
The Humber Gateway Wind Farm, operational since 2015, consists of 73 turbines located around 8 km offshore, generating 219 MW of energy. Its operations and maintenance centre is based at the Port of Grimsby, allowing for efficient servicing and management. Similarly, the Lincs Wind Farm, located near Skegness, features 75 turbines with a total generating capacity of 270 MW. This project also has its operations hub in Grimsby, reinforcing the town’s importance in supporting offshore wind infrastructure.
The Port of Grimsby has undergone significant transformation to accommodate the renewable sector, with major companies such as Ørsted and RWE establishing bases to service offshore wind farms. Centrica and E.ON have also set up dedicated maintenance facilities, further embedding Grimsby’s role in wind farm operations. Looking ahead, the Dogger Bank Wind Farm, one of the largest offshore wind projects globally, is expected to create further opportunities, with Grimsby’s expertise and infrastructure making it a key player in future developments. The rapid expansion of renewable energy in the region is driving economic growth, ensuring that Grimsby remains at the forefront of the UK’s transition to sustainable energy.
Grimsby University (UCG)
The University Centre Grimsby (UCG), part of the Grimsby Institute of Further & Higher Education, caters to a diverse student population across various levels of study. While the broader Grimsby Institute serves around 17,000 students, this figure includes both further education and higher education learners.
But for higher education specifically, UCG has a relatively small student body compared to larger universities. Estimates suggest that fewer than 5,000 students are enrolled in its degree and foundation degree programmes, with some sources putting the number at around 1,580 students. So whilst the numbers aren’t comparatively large compared to towns with similar population levels, like Lincoln, it does establish itself as a University town over some other rivals with comparable populations.
There are potentially big changes on the horizon for students in Grimsby, however. The “Ambition 2030” strategy is set to make Grimsby a much bigger player in higher education, attracting more students over the age of 18 who will need to live and study in the town. With a focus on career-driven learning, modern facilities, and industry links, this plan is designed to bring in students who are serious about gaining qualifications that will lead directly to employment.
One of the biggest changes is that the TEC Partnership now has degree-awarding powers, meaning it can develop its own university-level courses tailored to industries that are growing both locally and nationally. This is a game-changer for attracting students who want specialist training in fields such as renewable energy, healthcare, and food production. These aren’t just generic degrees – they’re designed to meet real industry needs, making Grimsby a smart choice for anyone looking to fast-track their career.
On top of that, there’s big investment going into facilities, including a new animal care centre and a seafood school, both of which will offer hands-on training in highly skilled industries. The introduction of Skills Bootcamps will also help people retrain in just a few months, giving those looking for a career change a reason to move to Grimsby for a fresh start. And with partnerships in place for online learning, students can begin their studies remotely before relocating to complete practical training and take advantage of local job opportunities.
With all these developments, Grimsby is set to become a real destination for higher education, attracting a new wave of students who will need housing, work opportunities, and local amenities. As more over-18s move to the area, demand for student accommodation, HMOs, and local businesses is expected to grow, helping to boost the town’s economy and make it a more vibrant place to live and study.
Grimsby Hospital
The Diana, Princess of Wales Hospital is one of the largest employers in Grimsby, playing a crucial role in both the town’s healthcare services and its economy. With an estimated 2,000 to 3,000 staff working at the hospital, it provides jobs for a significant portion of the local workforce, covering a wide range of roles from doctors and nurses to administrative staff and support workers. As part of the Northern Lincolnshire and Goole NHS Foundation Trust (NLaG), which employs around 6,800 people across multiple sites, the hospital is a major pillar of employment in the area. For HMOs in Grimsby, the hospital has been a solid source of short and long term tenants.
Grimsby Port and Humber Refinery
The Humber Refinery and Port of Grimsby are two of the most important industrial employers in the region, playing a crucial role in the local economy by supporting thousands of jobs and facilitating major trade and energy operations.
The Humber Refinery, operated by Phillips 66, is one of the largest industrial employers in the area, with around 1,100 workers, including contractors. Located near Grimsby in South Killingholme, the refinery processes approximately 221,000 barrels of crude oil per day and is the only coking refinery in the UK. It produces high-quality petroleum products used across the transport, energy, and manufacturing industries, with much of its output distributed across the UK and internationally. The refinery’s workforce is key to maintaining operations, supporting both direct jobs and a wider supply chain of contractors and service providers in the region.
The Port of Grimsby, part of the wider Humber ports network managed by Associated British Ports (ABP), is another major source of employment. While exact figures for the port itself are not readily available, ABP’s Humber ports – which include Grimsby, Hull, Goole, and Immingham – collectively support 33,000 jobs, with over 1,200 people employed directly by ABP. The Port of Grimsby is particularly vital for car imports, handling more than 500,000 vehicles per year, as well as supporting the offshore wind industry and commercial cargo operations. These activities ensure that the port remains a key driver of economic activity, requiring a strong workforce across logistics, transport, and engineering roles.
Recent Funding
Grimsby has been awarded up to £20 million as part of a £180 million allocation for Yorkshire and the Humber, aimed at revitalising neighbourhoods and fostering economic growth. This funding is part of the UK Government’s £1.5 billion initiative to build stronger, healthier, and more connected communities.
Councillor Philip Jackson, Leader of North East Lincolnshire Council, welcomed the investment, highlighting its alignment with the council’s commitment to economic development and community strengthening. He emphasised the importance of collaboration with local partners to maximise the benefits of this funding for residents and businesses.
Grimsby is among nine towns in Yorkshire and the Humber selected for this scheme, which forms part of the Government’s new ‘Plan for Neighbourhoods.’ The programme will empower local communities to determine how best to allocate the funds, ensuring that investments address local needs effectively.
Neighbourhood boards will be established to oversee spending decisions. Potential projects could include infrastructure improvements, such as pavement and high street repairs, the establishment of low-cost community grocers, cooperative initiatives, or the formation of neighbourhood watch schemes.
Deputy Prime Minister Angela Rayner MP emphasised the scheme’s focus on community-led decision-making, allowing residents to direct funding towards issues they deem most important. Minister for Local Growth Alex Norris MP reinforced this, stating that thriving neighbourhoods are essential for national prosperity and that this initiative gives communities greater control over their future.
Local Developments & Regeneration
Grimsby is undergoing a major transformation, building on its strengths in seafood processing and offshore wind technology to shape a prosperous future. Home to the UK’s largest seafood processing centre, the town also hosts Ørsted’s £14 million operations and maintenance hub, servicing six offshore wind farms—including Hornsea, the world’s largest—powering 3.2 million homes with renewable energy.
A key aspect of Grimsby’s progress is its £100 million regeneration programme, now four years in. Supported by over £64 million from the UK Government’s Towns Fund, the initiative is revitalising the town centre with projects designed to meet sustainable standards. Completed developments include the Riverhead Square public event space and Projekt Renewable, an educational and cultural hub made from repurposed shipping containers.
Further regeneration efforts include the conversion of the Grade II listed West Haven Maltings into the Horizon Youth Zone, providing educational and leisure facilities for young people. Adjacent to this, Keepmoat is developing a waterfront residential community, and by 2026, a new leisure and entertainment complex, including a five-screen cinema, will be added near Freshney Place shopping centre. The council’s bold move to purchase Freshney Place for £25 million after its 2022 administration has also enabled the creation of an NHS community diagnostic centre, enhancing healthcare access and increasing footfall.
Collaboration between businesses, the council, and local groups has been instrumental in Grimsby’s regeneration. Initiatives like The Hive, a new business hub, and investment from private companies like Ørsted demonstrate a commitment to economic growth.
Summary
Grimsby is on the up and is one of the last major areas yet to introduce city wide article 4 restrictions. With the development plans in place this could be a fantastic opportunity for HMO investors to get in ahead of the boom and purchase well positioned HMOs in Grimsby around the city centre and in close proximity to the University and the Hospital.
