HMO additional licensing and Article 4 Direction Consultations

A property occupied by three or more people who form two or more separate households, and they share basic amenities (kitchen, bathroom, or toilet). 

The nature of unrelated people living together poses additional hazards such as overcrowding, fire and additional use of facilities.

HMOs can also be associated with increased risk of crime, anti-social behaviour and fly-tipping.

An Article 4 Direction is a planning tool that allows a local authority to remove permitted development rights, subject to a six-week consultation period.

In this case, the Council is proposing to remove the Permitted Development Rights for Small HMOs (those that accommodated three to six people). This would mean planning permission would be required for all new HMOs.

A scheme that enables councils to introduce licence requirements for smaller HMOs (three or four people), helping to create consistency and fair standards across the HMO sector. Additional licensing is subject to a minimum ten week consultation.

The Council is aware of 317 HMO across the Borough – these are properties that accommodate five people or more and subject to mandatory licensing. At the moment, it is impossible for the Council to be certain of how many HMOs there are which are housing three or four people as they are not subject to licensing and planning permission is currently not required. Data suggests we may have at least another 400 smaller HMOs in the borough. 

Under the Town and Country Planning (General Permitted Development) (England) Order 2015 (as amended), Councils can introduce an Article 4 Direction to remove Permitted Development Rights, however a six-week consultation must take place before a decision can be made and there is a 12 month lead in period before it can be implemented.

The Housing Act 2004 enables local authorities to implement both mandatory and discretionary licensing schemes to deal with HMOs. Mandatory licensing is for  all HMOs with five occupants or more and is already in place borough-wide. The second is a discretionary scheme which in this case brings all smaller HMOs into scope for licensing, known as additional licensing. The discretionary scheme requires a minimum 10-week consultation.  

Since the start of our Better Homes for All initiative in 2018, we have been working to improve standards in the private rented sector by carrying out intelligence led proactive enforcement. Using the Safer Streets and Safer Stronger initiatives we have been able to improve standards across certain wards by working proactively with landlords. However, we still have work to do to ensure conditions in our HMOs are safe and consistent. Additional licensing and Article 4 will ensure we support communities with a mix of housing opportunities with adequate parking and consistent standards of HMOs in the Borough.   

• The introduction of Article 4 Direction would allow the Council to know where all HMOs are located and allow the Council to consider what the impact of new HMOs would be on the wider community and local services as part of the planning process.
• Additional licensing would mean all HMO properties would be inspected for safety and compliance and landlords would be required to manage issues such as anti-social behaviour.
• Both schemes would provide reassurance to residents that appropriate measures are in place to protect and care for their local community.
• Both schemes would encourage residents to report any breaches of planning for an unauthorised change of use of a dwelling into an HMO.
• For existing and new HMOs there will be one consistent minimum standard that all tenants can expect from their homes including adequate amenities and appropriate fire precautions.

The proposed cost to a landlord for a licence would be approximately £1,522 per property. For compliant landlords, the licence would be in place for five years, so the cost would equate to just over 80p a day. 

The cost to go through planning to change the use of a dwelling (use class C3) to a small HMO (use class C4) is £588 (subject to fee increases).

• Ensures consistent, high-quality living conditions in all HMOs.
• Assisting tenants select responsible landlords.
• Provides stronger protections for tenants in cases where landlords breach licence conditions.

• An Article 4 Direction may help prevent the overconcentration of HMOs, ensuring they are located in areas that support sustainable communities, reducing issues (including untidy land and anti-social behaviour) and neighbour complaints, and therefore benefiting responsible landlords.
• All Article 4 Direction planning decisions will need to be determined in accordance with all up-to-date and relevant planning policy, offering landlords clarity and consistency when applying.
• Additional licensing ensures all landlords meet the same standards, helping to tackle rogue operators and improve public perception of HMOs - supporting good landlords and their investments.
• Build their reputation as responsible landlords and attract long term tenancies.
• Landlords will receive continued guidance and support from the Council, helping them stay compliant and manage their properties effectively.
• Once approved, the licence lasts for five years*, giving landlords long-term certainty and reducing administrative burden. (* the council may issue shorter licences in some cases, where they lack confidence in management).
• Licensing and planning application fees are standard and transparent, allowing landlords to plan costs with confidence.

• Provide reassurance that the location of all HMOs and other factors are considered as part of national planning guidance.
• It will help reduce the risk of potential issues related to HMOs - such as poor waste management, parking pressures and anti-social behaviour.