Houses in Multiple Occupation

The Minister for Housing and Local Government (The Rt Hon Grant Shapps): Today I am announcing the Government’s intention to amend the planning rules for houses in multiple occupation (HMOs) which were introduced on 6 April 2010.

I understand the concerns of local people who see their neighbourhoods being damaged by undue concentrations of HMOs and the significant impact this is having on their quality of life.  However there are also many areas where HMOs are not causing problems and indeed provide an important supply of low cost housing.  I believe that the planning system needs to take account of both these differing circumstances and allow for local solutions rather than continue with the present ‘one size fits all’ approach.

The current rules impose a blanket requirement for planning permission in order to change use from a domestic house to a HMO.  When introduced, it was estimated that these rules could result in an additional 8,500 planning applications per year and could lead to a reduction in supply.  This goes against the recommendations in successive reports on the planning system that Government should reduce the number of planning applications for minor development.  It also runs the risk of losing low cost housing in areas where it is needed most.

I believe that we need to move away from this kind of centralised, regulatory approach which has dominated planning in recent years and create a system which encourages local people to take responsibility for shaping their communities.  Decisions should reflect local priorities expressed through the local plan, rather than nationally imposed rules.

I therefore intend to amend the HMO rules to allow changes of use between family houses and small, shared houses to take place freely without the need for planning applications. However, in those areas experiencing problems with uncontrolled HMO development, local authorities will be able to use their existing direction making powers to restrict this freedom of movement by requiring planning applications.  This change will allow the free development of smaller shared housing, which is a vital component of our private rented sector, unless there is a serious threat to the area.

My officials will work through the detail of the proposed changes with interested partners to ensure that the new rules work for local people without placing an unnecessary burden on businesses.

My aim is to have the revised arrangements in place by 1 October 2010.

It appears that the Government are to introduce new planning laws for HMOS

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This would mean that ANY property being let to three or more persons who are unrelated would need change of use, also that after April a property would not necessarily need to be in an area for Additional Licencing

Local powers for councils to protect communities and improve standards in the private rented sector

Housing and Planning Minister John Healey has announced new local powers to control the spread of high concentrations of shared rented homes and to tackle pockets of unsafe and substandard accommodation run by bad landlords.

Mr Healey confirmed new powers for local councils to manage the unplanned spread of Houses in Multiple Occupation (or an HMO) in towns and cities. The cluster of too many shared houses can sometimes cause problems, especially if too many properties in one area are let to short term residents with little stake in the local community. Tenants can also suffer from poor conditions and management of the properties by landlords.

A Government consultation on how to tackle this long-standing issue closed last year. It attracted around 900 responses, published today, from local authorities, residents associations, universities, individuals, MPs, councillors, and campaign groups. The large majority of those who responded supported a change to the so-called Use Classes Order, which defines how a property can be legally used, and the introduction of a definition of what constitutes a HMO.

Mr Healey responded to the consultation by confirming changes to the planning rules, giving local authorities the powers to manage the development of HMOs in their area, in turn helping stem the growth of large pockets of shared homes – which can change the balance and nature of communities. The Minister said that he would legislate so the new rules would come into force by April this year. The changes mean that landlords will need to apply for planning permission in order to establish a new HMO with a change of use, for example when the use of a property is altered from a family home to a shared house, with three or more tenants who are not related.

The Minister also published plans for councils, giving them extra flexibility to license landlords, requiring safe and quality rented accommodation in neighbourhoods where large numbers of substandard properties can be a magnet for community problems.

In a consultation published today, John Healey proposes to give a general consent for councils to introduce licensing schemes, without seeking permission from central Government, in hotspot areas where landlords do not maintain or manage their properties properly. A general consent would ensure that decisions on the quality of rented homes are made by those who are aware of the local issues and needs of the community. In the future, tenants will see improved standards and councils will be better able to deal with the worst landlords that drag down the neighbourhood.

Mr Healey also confirmed that detailed work is now underway for a new National Landlords Register, to help raise standards of private rented accommodation further. For the first time it will give landlords and tenants easy access to clear advice and support. It will also be the way in which landlords and tenants can be kept informed of basic rights and responsibilities.