Regulation of Houses in Multiple Occupation

Thursday 8th January 2026

(2 days, 2 hours ago)

Petitions
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The petition of residents of the constituency of South Shields
Declares that the uncontrolled growth of houses in multiple occupation (HMOs) within the constituency is having a detrimental impact on communities, leading to overcrowding, crime, anti-social behaviour, parking pressures, and the erosion of family housing availability; notes that HMOs are subject to different licensing regimes under housing law, including mandatory licensing, additional licensing, and selective licensing; further declares that while these licensing schemes provide oversight of management and safety, the planning system remains the main safeguard against over-concentration; and further declares that without strengthened legislation, HMOs can proliferate unchecked.
The petitioners therefore request that the House of Commons urge the Government to introduce new legislation to regulate and lessen the proliferation of houses in multiple occupation; and to ask that each local authority publishes their strategy and policies on HMOs.
And the petitioners remain, etc.—[Presented by Emma Lewell, Official Report, 03 November 2025; Vol. 774, c. 728.]
[P003124]
Observations from the Minister for Housing and Planning (Matthew Pennycook):
Houses in multiple occupation provide relatively low-cost accommodation for rent and can play an important part in the housing market.
National permitted development rights are a grant of planning permission for certain types of development set out in legislation. Under the planning system, a permitted development right allows a house (the C3 dwellinghouse use class) to change use to a small HMO (the C4 use class) for up to six people sharing facilities without the need for a planning application. Larger HMOs require an application for planning permission.
Local authorities already have planning powers to limit the proliferation of small HMOs within their locality. Where there is sufficient evidence of the need to do so, a local planning authority may withdraw a permitted development right in a specific area using an article 4 direction, after consultation with the local community.
This would mean any change of use to both large and small HMOs would require an application for planning permission, which is determined in accordance with the development plan for the area and provides an opportunity for local people to comment. It is important that local areas have relevant, up-to-date policies in place against which any planning applications or appeals will be determined.
The national planning policy framework requires local authorities to plan to meet housing needs. The size, type and tenure of housing needed for different groups in the community should be assessed and reflected in the development plan and other planning policies which are publicly available.
In relation to HMO licensing, under the Housing Act 2004 local authorities have powers to license HMOs to ensure they are safe, well-maintained and properly managed. Local authorities must license HMOs where five or more people from two or more separate households share facilities (“mandatory licensing”). Following consultation, local authorities can also choose to licence smaller HMOs where three or four people from two or more separate households share facilities (“additional licensing”).
A licensed HMO property must meet mandatory conditions around fire safety, minimum room size and provision of amenities. The licence holder—and manager, where relevant—must undergo a fit-and-proper-person test. Local authorities can also add bespoke licence conditions, for example to improve facilities, and have the power to inspect licensed HMOs without notice where they believe an offence is being committed under HMO legislation.
All HMOs, regardless of whether they require a licence, must also comply with the HMO management regulations. These impose duties on the manager of an HMO, typically the landlord, including providing adequate bins and waste collection.
Where a landlord fails to licence an HMO, or does not comply with HMO licence conditions or the HMO management regulations, local authorities can prosecute them, impose civil penalties of up to £30,000 as an alternative to prosecution, or seek a banning order. A landlord who commits a serious offence, such as failing to obtain a mandatory licence could also be subject to a rent repayment order, where they can be ordered to repay up to 12 months of rent to a tenant or local authority.
The Government keep the powers to regulate HMOs under review.