Houses in Multiple Occupation: Combined Planning Applications
(Limited Text - Ministerial Extracts only)
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The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Mrs Heather Wheeler)
It is a pleasure to serve under your chairmanship, Mr Hanson.
I congratulate the hon. Member for Ealing North (Stephen Pound) on securing this important debate. I welcome the wide-ranging discussion and recognise many of the concerns about the impact of houses in multiple occupation, or HMOs, in certain areas.
I thought it would be helpful if I set out clearly the wide range of housing and planning controls that exist to control both the creation and operation of HMOs. I hope this will demonstrate that local authorities have an effective array of tools to ensure that any adverse impacts from HMOs can be properly addressed. Before discussing those controls in detail, it is important to acknowledge the wider context: the pressing national need to increase the supply of all types of housing.
As we set out in the housing White Paper, the Government are determined to boost the supply of housing and, over the longer term, create a more efficient housing market where outcomes more closely match the needs of all households. Our actions are already delivering success. Since 2010, we have delivered more than 357,000 new affordable homes, and around one quarter of them are in London.
The Prime Minister recently announced an additional £2 billion funding for affordable housing, which will increase the affordable homes programme budget to over £9 billion. The new funding will support councils and housing associations to build more affordable homes where they are needed most—where families are struggling with rental costs, and some are at risk of homelessness. But there is more to do.
The Government recently published a revision of the national planning policy framework for consultation, which implements around 80 reforms announced last year. It will ensure that planning remains locally led and that all local communities get the homes and infrastructure they need. It represents an ambitious step forward in our aim to tackle the housing crisis by bringing forward more land for housing in the right places. The consultation runs until 10 May at 11.45, that is 23.45—
Mrs Wheeler
At 23.45.
Subject to being properly planned, constructed and managed, the provision of additional HMOs can make a small but important contribution to housing supply in some areas. That is particularly true for those entering the market for the first time.
One final point of introduction: hon. Members will appreciate that because of the Secretary of State’s role in the planning process, I cannot comment on specific cases raised today. I apologise to the hon. Gentleman that my comments will therefore cover the issues in general. I hope, none the less, to reassure hon. Members that the Government take proper control of HMOs seriously.
HMOs play an important role in the private rented sector. They provide a cheaper alternative to other private rented accommodation and flexibility. However, they sometimes pose greater management challenges than single household accommodation. That is why mandatory licensing of HMOs was introduced in 2004 for properties with three or more storeys that are occupied by five or more people. Since its introduction over a decade ago, it has been successful in raising standards and enabling local authorities to tackle overcrowded conditions and poor management practices. However, significant growth in the private rented sector means that some smaller properties are being converted for use as HMOs. Those HMOs do not legally require a licence at the minute, and there are sometimes problems with standards. To address that, we are extending mandatory licensing, which we expect to come into force in October 2018.
I am sure you will be pleased to hear, Mr Hanson, that the extended scope of mandatory HMO licensing will cover properties where five or more unrelated tenants share facilities, regardless of the number of floors in the building. We are also creating two new mandatory HMO licence conditions: national minimum sizes for rooms used as sleeping accommodation, and a requirement to comply with council refuse schemes.
Gareth Snell
As the Minister is outlining things that the Government are looking to do, would they be willing to consider a saturation limit? As my hon. Friend the Member for Ealing North (Stephen Pound) said, the issue is not necessarily the numbers, but the concentration in certain areas. If the Government were able to entertain that, I am sure she would find cross-party support.
Mrs Wheeler
There is not, in fact, a limit on the number of HMO licences a local housing authority can issue, so it can deal with it that way.
Good management of HMOs is important. Before a local housing authority can issue a licence, it must be satisfied that the proposed licence holder or landlord is a fit and proper person. It has to ensure that the landlord has no unspent convictions, has not carried out unlawful discrimination and is not in contravention of housing or landlord and tenant law.
Local authorities have the powers that they need to impose conditions on how landlords manage these properties, and to ensure that they do not cause overcrowding. Conditions can also be included to ensure that landlords maintain the upkeep of properties. The conditions can also make them responsible for such things as antisocial behaviour committed by their tenants. A breach of a licence condition is a criminal offence and a licence holder can receive a substantial fine if convicted. Repeated or substantial breaches of a condition can also result in the licence being revoked. That is a significant penalty.
Licensing HMO properties strengthens a local authority’s enforcement capacity. They have strong powers in the Housing Act 2004 to tackle poor property conditions and overcrowding in HMOs. They can serve improvement notices requiring landlords to carry out works to remedy poor conditions or make prohibition orders to prevent overcrowding. In the most serious cases, where the health and safety of tenants and their families is at significant risk, local authorities are under a duty to take action to combat the problem.
Landlords who fail to comply with an improvement notice or prohibition order are committing a criminal offence. Indeed, failure to apply for a licence is also a criminal offence. We have gone further in tackling rogue landlords by introducing new powers in the Housing and Planning Act 2016 that mean that non-compliant landlords can face a civil penalty of up to £30,000. Furthermore, we have enabled local authorities to keep the income from such fines to support their enforcement capacity.
Ealing, specifically, has been proactive in licensing smaller HMOs by introducing an additional licensing scheme in 2017 to cover HMOs occupied by four people or more. Ealing has gone further in using licensing to raise standards in the sector. It has also introduced selective licensing, which allows it to license all private rented properties in specific parts east of the borough. That is with a view to driving improvements in the quality and management of such properties. Ealing has also previously been successful in securing additional financial support under our rogue landlord funding. Through that, it has carried out more than 1,500 inspections and 30 raids in partnership with the UK Border Agency.
However, I recognise that HMO accommodation can sometimes lead to problems for local residents who live in the vicinity. Many of the problems arise from the intensification of the use of the property. If there is a concentration of HMOs, the cumulative impact can affect neighbours’ amenities. The planning system also has a role to play in controlling such development. Permitted development rights allow a family house to be changed to a small house in multiple occupation for up to six people sharing facilities without a planning application. Where neighbours have concerns, they can alert the planning authority. It is then for the planning authority to determine whether the works are lawful, and if not what, if any, action to take.
I will get to article 4, but I am concerned about the time because the hon. Gentleman probably wants to respond.
Mrs Wheeler
The hon. Gentleman does not? That is really kind; I thank him.
I will talk more about enforcement. A landlord who deliberately rents out a house to more than six individuals would be in breach of planning control if they had not obtained planning permission from the local planning authority, so it could take enforcement action.
The Government believe that it is important to tackle breaches of planning control that would have an unacceptable impact on the amenity of an area. Local planning authorities already have a wide range of strong enforcement powers to do so. However, enforcement action can be taken only when a breach has occurred. It cannot be taken in anticipation of a likely breach; although, where a local authority considers that an unauthorised development is likely to occur, it can apply for an injunction to prevent that from happening.
Making full and effective use of all the available powers can also act as a deterrent. Taking action against the unlawful development of houses in multiple occupation in a targeted area, combined with licensing and building regulation enforcement if necessary, can send a strong message to other rogue developers and landlords that they will not be tolerated. However, it is up to planning authorities when and how they use these powers. I am encouraged to learn that the hon. Gentleman recently met the chief planner of Ealing London Borough Council to discuss the local issue. It is best placed to undertake these investigations.
To conclude, I hope that hon. Members are convinced that there are rigorous powers available to local authorities to ensure the control and management of HMOs.
Motion lapsed (Standing Order No. 10(6)).