Agenda item

To receive the report on Article 4 & Additional Iicensing of Houses in Multiple Occupation (HMOs).

Cabinet considered a joint report by Councillor Carolyn Healy, Cabinet Member for Neighbourhoods, Planning and Sustainability and Councillor Richard Overton, Deputy Leader and Cabinet Member for Highways, Housing and Enforcement, which set out an evidence base for the introduction of an Article 4 Direction for Small Houses in Multiple Occupation (HMO), which would withdraw existing permitted development rights meaning all HMOs would require planning permission.

The report also set out proposals to introduce an Additional Licensing Scheme under the Housing Act 2004, which would require a licence for small HMOs comprising 3 to 4 occupants, which were not currently covered by the existing mandatory licensing regime, which required HMOs with five or more occupants to be licensed.

It was reported that this was a significant milestone in the Council’s journey to improve the private sector in Telford and Wrekin.  This joint report began with a clear ambition to ensure that everyone in the borough had access to safe, decent and affordable housing and  it was recognised early on that while the private lending sector was a vital part of the borough’s housing mix, it also presented unique challenges, especially for the borough’s most vulnerable residents. 

The Council had, too often, seen the consequences of poorly managed properties, antisocial behaviour, overcrowding and neighbourhood decline and that it was the Council’s position that decent housing was the fundamental foundation for opportunity, health and community.  That was why, in 2018, it launched the Better Homes for All programme, which took proactive intelligence-led enforcement action against rogue landlords and unsafe properties.  Good progress had been made but the landscape had changed due to the cost-of-living crisis, welfare reforms and rising rents, which had driven more people into shared housing and HMOs.

The report set out that the number of HMOs in the borough had grown rapidly and with it, the concerns of residents about the impact on their communities.  HMOs were necessarily an important part of the Council’s housing solution, since they provided affordable accommodation for young people, students and those on low incomes and for many, they were the only viable option, but  the nature of shared living meant that HMOs required careful management.

It should be remembered, however, that well-run HMOs offered a good start in life although, if poorly managed, they could be linked to antisocial behaviour, crime, overcrowding, and poor living conditions.

It was important to stress that these proposals had not been brought forward lightly and that considerable time and effort had been taken to gather the robust evidence needed to justify these measures.  The Council had analysed local data, reviewed national best practice and had listened to the experiences of residents, landlords, and partners.  The evidence base demonstrated clear links between high concentrations of HMOs and increased crime, antisocial behaviour, and pressure on local services.

In response to the approach for both Article 4 and additional licensing, the evidence showed that issues linked to HMOs were not confined to one or two neighbourhoods and were present across the borough.  A patchwork approach would risk simply displacing problems from one area to another but by taking a borough-wide stance, the Council could ensure consistent standards, protection of all communities and avoid creating new hot spots of concern.

The report set out the following two key proposals to address these challenges:

1. The proposed Article 4 direction to remove permitted development rights for the conversion of family homes, use Class C3, to small HMOs, use Class C4 across the borough. This meant that, in future, landlords would need to apply for planning permission before converting a property into an HMO.  The purpose was not to ban HMOs but to give the Council greater control over where these were located to prevent over concentration and to ensure that new HMOs were only permitted where they were appropriate for the neighbourhood.

2. Alongside Article 4, the Council was proposing a borough wide additional licence scheme for all small HMOs, three to four occupants, which were not currently covered by mandatory licensing.  This would require all small HMOs to be licensed, inspected, and held to consistent minimum standards for safety, amenities and management.

The scheme would include clear licence conditions, amenity standards, and a transparent fee structure with responsible landlords being rewarded for good practice. Importantly, the Council was also introducing an enhanced landlord and tenant support programme to help landlords comply with the new requirements and support tenants, especially those affected by the cost-of-living crisis.

It was reported that, at the heart of these proposals, was the Council’s commitment to tenants to good quality housing and that additional licensing brought real benefits for those living in HMOs and ensured that all HMOs, not just the largest, were inspected and met consistent standards for safety, space, and amenities.  It was hoped that tenants would have greater protection from poor conditions, overcrowding, and retaliatory eviction and since licensing enabled proactive checks rather than relying on complaints then, ultimately, this was about fairness and dignity and making sure that everyone, regardless of income or circumstance, had a decent place to call home.

It was believed that these proposals were the best way to manage HMOs and to address the issues linked to them, while still recognising their role in meeting the borough’s housing need.  The Article 4 measures would allow the Council to take a strategic approach to planning, to protect the character of its neighbourhoods and to ensure balanced communities.

In conclusion, additional licensing would raise standards across the sector, protect vulnerable tenants and support reasonable landlords.  It was important that each of these decisions were not being made in isolation and that was why the Council was launching a public consultation on both the Article 4 Direction and the additional licensing scheme to hear the views of residents, landlords, tenants and all stakeholders on what was an opportunity for everyone to have their say and to help the Council shape the final approach.

RESOLVED, that:

(a)  The two new proposed schemes, as detailed in the report, to help address the increase in shared housing in the Borough, to ensure the Council fulfilled its promise to its residents that it was ‘on your side’ by creating safe homes and fairer standards in HMOs, be approved;

(b)  The Evidence Base Report, attached at Appendix 1 to the report, to support the making of an Article 4 (1) Direction in the area edged red on the plan within Appendix 6 to the report, in accordance with the relevant planning legislation as set out in this report, be adopted;

(c)  The making of the Direction and the public consultation required prior to confirmation, in accordance with the legislative requirements, be approved;

(d)  If supported by the outcome of the public consultation, authority be delegated to the Director of Prosperity and Investment, in consultation with the Cabinet Member for Neighbourhoods, Planning and Sustainability, to exercise all powers conferred on the Council, regarding the making, processing and confirmation of the Article 4 Direction;

(e)  The document attached at Appendix 1 to the report, which set out the evidence in support of the Borough-wide implementation of an Additional Licensing Scheme under the Housing Act 2004 for all small Houses in Multiple Occupation (HMO) comprising 3-4 occupants, not currently covered by the mandatory licensing scheme, be agreed;

(f)   A period for public consultation on the proposed implementation of Additional Licensing for houses in multiple occupation, including proposed licence conditions, amenity standards and fee schedule, attached at Appendices 2 to 5 to the report, be approved and that a further report following the conclusion of the consultation to finalise and align all relevant fees for HMO licences, be prepared; and

(g)  The introduction of an enhanced Landlord and Tenant Support Programme to help landlords and tenants comply with the requirements of the Renters’ Rights Act 2025 and aid with the introduction of the proposed additional licensing scheme as necessary, be approved.