Council launches year-long campaign to regulate small HMOs

Council launches year-long campaign to regulate small HMOs

Reigate and Banstead council has begun consulting on an Article 4 Direction to require planning permission for small Houses in Multiple Occupation (HMOs), aiming to introduce controls by July 2027.

Reigate and Banstead Borough Council is consulting on a proposal to remove permitted development rights that currently allow homes to be converted into small HMOs—housing three to six residents—without planning permission. If approved by the government, the Article 4 Direction would mean landlords and property owners must submit a full planning application for such conversions. Larger HMOs, accommodating seven or more residents, already require planning consent.

The council has cited a rise in the number of HMOs and related complaints as the motivation for the measure. It intends to use planning controls to ensure future HMOs are located appropriately, designed to suitable standards, and do not negatively impact neighbours or the wider community. The consultation is open to residents, landlords, and other stakeholders, with a decision expected after the consultation closes in autumn 2026. However, even if confirmed, the restrictions would not come into force until 30 July 2027.

Details of the proposed Article 4 Direction and its implications

The Article 4 Direction under consideration would specifically target small HMOs, which currently benefit from permitted development rights allowing conversion without planning scrutiny. By removing these rights, the council aims to regain control over the spread and quality of HMOs in the borough. This change would require landlords to engage with the planning process, providing details on location, design, accommodation standards, and community impact for each proposed conversion.

Currently, larger HMOs already require planning permission due to their scale and potential impact. The council’s proposal seeks to extend similar oversight to smaller HMOs, reflecting concerns about their increasing prevalence and associated issues such as noise, waste management, and parking pressures. The council has pointed out that neighbouring authorities have implemented similar measures to manage housing pressures and community impacts.

The consultation period allows landlords, residents, and other interested parties to submit feedback before the council finalises its approach. The delay until July 2027 for implementation provides a transition period for landlords and developers to adjust to the new requirements.

Context of HMO regulation and planning controls in the UK

Houses in Multiple Occupation have long been subject to specific licensing and planning regulations due to their unique challenges in management, safety, and community impact. Nationally, larger HMOs are regulated through mandatory licensing schemes, while smaller HMOs have often escaped planning controls under permitted development rights. However, local authorities have increasingly sought to use Article 4 Directions to remove these rights and impose planning oversight on smaller HMOs.

This trend reflects growing concerns about the concentration of HMOs in certain areas, which can lead to community tensions, strain on local services, and issues with property maintenance. Planning controls provide councils with a tool to assess each conversion on its merits, considering factors such as the suitability of the location, the quality of accommodation, and the effect on neighbouring properties.

For landlords, this means that in areas where Article 4 Directions are in place, obtaining planning permission for small HMOs will become a necessary step, potentially adding time and cost to property conversions. Councils may also impose conditions to mitigate negative impacts, influencing property design and management practices.

Practical implications for landlords and letting agents

Landlords with properties in Reigate and Banstead should prepare for the possibility that converting homes into small HMOs will require planning permission from mid-2027. This will involve submitting detailed applications demonstrating compliance with local planning policies and addressing potential community concerns.

Letting agents will need to advise clients accordingly and may face increased workloads managing planning applications and ensuring compliance with new local requirements. The extended lead time before the Article 4 Direction comes into effect allows landlords to complete any planned conversions under current permitted development rights, but they should factor in the upcoming changes when planning future investments.

Additionally, landlords should monitor the consultation outcomes and any further guidance issued by the council. Early engagement with the planning process and clear communication with tenants and neighbours may help smooth the application process and reduce objections.

Uncertainties and areas to monitor

While the council’s consultation signals a clear intention to introduce tighter controls on small HMOs, the final scope and details of the Article 4 Direction remain subject to government approval and local decision-making. The exact criteria the council will apply to planning applications for HMOs are not yet defined, leaving some uncertainty for landlords regarding design standards and acceptable locations.

Landlords should also watch for potential changes in related licensing requirements or safety regulations that may accompany or follow the planning controls. The interaction between planning permission and existing HMO licensing regimes could affect the overall compliance burden.

Furthermore, the council’s approach to enforcement and monitoring once the Article 4 Direction is in place will be important. Effective enforcement could increase compliance costs but also improve standards and community relations.

Steps landlords should take now

• Review current and planned HMO properties in Reigate and Banstead to assess which may be affected by the new planning controls.
• Engage with the council’s consultation to provide feedback or seek clarification on the proposals.
• Plan any property conversions with the July 2027 implementation date in mind, aiming to complete permitted development conversions before the deadline if feasible.
• Stay informed about local planning policies and licensing requirements, and seek professional advice on planning applications and compliance.
• Maintain clear records of property standards, tenant communications, and compliance activities to support future applications and inspections.

Keeping your rental properties compliant with evolving HMO regulations

Membership of The Landlord Association (TLA) offers valuable support for landlords facing changes in HMO regulation such as the proposed Article 4 Direction in Reigate and Banstead. Through TLA’s compliance resources, members can access up-to-date guidance on planning and licensing requirements, helping them understand and prepare for new obligations.

TLA’s new property management and compliance platform, ORBIT, currently available in BETA testing, is designed to assist landlords and letting agents in organising property portfolios and managing documentation related to HMO compliance. Features in testing include the ability to record key actions such as planning applications, monitor regulatory developments, and keep evidence of compliance activity all in one place.

Exploring TLA membership and ORBIT BETA access can help landlords stay on top of evolving regulations, reduce administrative burdens, and maintain higher standards in their rental properties.

Landlords and agents in other areas should monitor their own local authorities for similar consultations and potential Article 4 Directions, as the trend toward increased planning control of HMOs continues across England.

Sources: Landlord Today