The Minister for Housing and Planning (Matthew Pennycook)
I start by congratulating my hon. Friend the Member for South Shields (Emma Lewell) on securing this important debate, and I thanking my hon. Friend the Member for Bexleyheath and Crayford (Daniel Francis) and the hon. Member for Bridgwater (Sir Ashley Fox) for their contributions.
I fully appreciate the concerns my hon. Friend the Member for South Shields raises about houses in multiple occupation, and in particular about their excessive concentration in two parts of her constituency, and the many problems that flow from that, which she described so vividly. HMOs can play an important role in the housing market, providing relatively low-cost accommodation for rent, as my hon. Friend acknowledged. However, it is right that local planning authorities can act, where appropriate, to minimise any negative impacts that such houses may have on local communities.
My hon. Friend made a number of points about the interaction between HMOs and the planning system. As she rightly said, larger HMOs always require an application to the local planning authority for planning permission. However, nationally permitted development rights allow for existing homes to change use and become a small HMO for up to six people without the need for a planning application. Such small HMOs are also able to change back to standard family homes under similar rights. We recognise that the free operation of these nationally permitted development rights is not always suitable for all areas, which is precisely why local planning authorities can remove permitted development rights in a specific area by introducing an article 4 direction, following consultation with the affected local community.
As my hon. Friend made clear, South Tyneside council has introduced a borough-wide article 4 direction, which means that all new HMOs in its area will need a planning application, regardless of their size. She has previously drawn attention to the impact of the growth of HMOs in her constituency, and will therefore welcome that change; I know the role that she played in pressing her local authority to make it.
All planning permission applications are considered by the local planning authority in question in line with the development plan for the area, and in consultation with the local community. It is therefore key that local planning authorities have relevant and up-to-date policies in place. As my hon. Friend will be aware, South Tyneside council last adopted a local plan back in 2007, which means that the policies in the plan are significantly out of date. It is one of the oldest plans submitted in the legacy planning system.
Following the council’s repeated failure to agree to submit its new plan for examination by an independent inspector, I intervened to ensure that the plan progressed to examination. I am pleased to report that the examination hearings have been completed, and we await the inspector’s final report. Following receipt of the inspector’s report, and in line with my intervention direction, the council will need to consider adoption of the plan. Adopting the plan will ensure that the council has up-to-date planning policies in place for South Tyneside, which is hugely important.
My hon. Friend will be aware that the Government recently consulted on a new national planning policy framework. The consultation included proposals for a more flexible policy on the use of article 4 directions, so that local planning authorities can remove nationally permitted development rights where that is necessary to safeguard the amenity or wellbeing of an area—where, for instance, there is an over-concentration of small HMOs. We are analysing the feedback received on that consultation, and will publish our response in due course.
It is essential that HMOs are safe and well managed, which is why all HMOs are subject to management regulations. These regulations place duties on managers of HMOs to take safety measures, supply and maintain gas and electricity, and maintain common parts, fixtures and fittings. In addition, all local planning authorities must license HMOs with five or more people from two or more households who share facilities such as a kitchen or bathroom. Local authorities also have the power to require HMOs to be licensed where there are three or more people from two or more households sharing facilities. This means in practice that most HMOs can be licensed, where necessary. Local authorities can impose licence conditions to ensure that landlords effectively manage HMOs, and also have the power to inspect properties without notice, where they believe an offence has been committed under HMO legislation.
Furthermore, the licence holder must undergo a fit and proper person test to assure a local authority that they can manage the property responsibly, safely and lawfully. I note my hon. Friend’s concerns about the operation of that test and its potential shortcomings, and I am more than happy to sit down with her and work through some of the examples she provided, so that we can learn more about its operation. If a local authority finds that the licence holder is no longer fit and proper—for instance, where they have committed a serious or repeated breach of licence conditions—it can revoke their licence. Local authorities have additional robust powers to tackle landlords who breach HMO regulations. That includes civil penalties of up to £40,000, rent repayment orders.
Emma Lewell
The Minister is right: regulations are in place and there is a fit-and-proper test—but they are not working. That is why I secured the debate and why my colleagues and I are asking for stronger regulation. Everything that is in place is simply not working.
Matthew Pennycook
As I have said, I am more than happy to sit down with my hon. Friend and other hon. Members to hear their suggestions on where the regulations need to be strengthened. As a Department, our experience has been that, in some areas of the country, the powers are being properly enforced and the regulations are working. I want to understand more, if she is able to provide the evidence.
Matthew Pennycook
I will give way in a second, but let me briefly mention resources, which are really important.
It is vital that councils have the capacity to take action where needed. That is why we have provided £18.2 million in 2025-26 and £41.1 million for 2026-27 to support the new enforcement responsibilities that local authorities have taken on under the Renters’ Rights Act 2025. We plan to establish a more sustainable funding system for enforcement in the private rented sector over the longer term based on future database revenue fees, but, again, I want to understand the challenges that particular local authorities are facing in that respect.
Matthew Pennycook
Let me just give way first to my hon. Friend the Member for South Shields before I come to the hon. Gentleman.
Matthew Pennycook
I do not have that information to hand. I am more than happy to follow up in correspondence with my hon. Friend, as I said. I will bring that data, and any further data we have available, to any meeting that we might have on this subject.
Sir Ashley Fox
I suspect the answer to the hon. Lady’s question is “very few indeed.”
The issue in my Bridgwater constituency is that Hinkley Point C—a nuclear power station—is being constructed a few miles away. Many thousands of good workers have come to the town—their number will peak at around 12,000 in the next couple of years. The local council needs the power to restrict the number of HMOs in any particular street or district. Clearly, there is a housing need, so one understands why landlords convert those houses, but the resulting economic pressures bring a change upon the nature of certain areas. Councils need the power to restrict the concentration of HMOs.
Matthew Pennycook
Councils have that power. I do not know off the top of my head whether the hon. Gentleman’s local authority has consulted on and put in place an article 4 direction, but if it has not, I strongly encourage him to make that case so that his local authority makes full use of its powers.
This is the crucial point. Are the powers in place inadequate—in which case let us have that conversation among hon. Members—or are individual local planning authorities unable or unwilling, for whatever reason, to exercise properly the powers that they have? If that is the case, we need to understand what more they need in the way of resources, support and guidance to be able to do so.
Let me briefly touch on social and affordable housing. As my hon. Friend the Member for South Shields rightly said, the ultimate solution to ensure that we have enough housing supply in any given area is to build enough homes of all tenures, including social and affordable homes. She has welcomed our new £39 billion 10-year social and affordable homes programme, the largest long-term investment in social and affordable housing in recent memory. Our ambition is to deliver around 300,000 homes over the lifetime of that programme. As she knows, our target is for at least 60% of the homes delivered to be for social rent, to provide the genuinely affordable homes that families need in her area and others.
We are also taking decisive action to reinvigorate council house building, including a new 10-year housing rent policy, and we have reinstated rent convergence. That will strengthen councils’ capacity and confidence for building new homes. We are taking action to reform the right to buy, including returning right-to-buy cash discounts to between £16,000 and £38,000. Again, as my hon. Friend the Member for South Shields knows, we will go further in implementing the next phase of reforms through our Social Housing Bill, which is making good progress in the other place. Its measures include allowing councils to keep 100% of the receipts generated by right-to-buy sales, with increased flexibilities in how they can be spent.
We are already seeing many the fruits of many of the reforms that we have put in place. Data released just this morning by Homes England and the Greater London Authority in respect of affordable housing starts and completions shows that starts are up 26% and completions are up 8% on 2024-25, and we are delivering the highest number of social rent starts since 2010-11.
My hon. Friend the Member for South Shields mentioned the national scheme of delegation. We are modernising how planning committees function, and we have been very clear about the case for doing so. We want to ensure that in exercising their democratic oversight, planning committees are focused on the applications that require member input, not on revisiting applications and decisions that have already been taken.
We published a working paper on this in December 2024, and we carried out extensive engagement following that. We formally consulted twice on the reforms, once in May 2025, on the principle of a two-tier system with some decisions delegated to planning officers, and once in March 2026, on the draft regulations and guidance. We are to debate those guidelines next week.
I will gently push back on my hon. Friend’s contention that local voices and objections are cut out. Nothing in those regulations will stop local residents objecting to applications or registering their discontent, but we do think that on a certain set of applications, it is right that expert planning officers make the decisions.
I also just make the point that schemes of delegation are in place across most local authorities in the country. The problem is that there is huge variation, which is creating issues in the planning system. We want to streamline that with a simple set of rules across the country and a national scheme.
Emma Lewell
I thank the Minister for being incredibly generous and giving way again. Regarding the statutory instrument before the House, of course constituents and residents will still be able to voice their concerns, but will those concerns go to a committee to make a decision, or will all decisions on HMOs go directly to council officers for decision once the SI is in force?
Matthew Pennycook
I am happy to sit down and run my hon. Friend through the instrument in lots more detail than I can give from the Dispatch Box, but it is the case that the national scheme of delegation does not specify HMOs in particular. However, development not covered by the HMO permitted development right will fall into schedule 1 of the regulations relating to the national scheme of delegation, where those decisions will be delegated to expert planning officers. As I said, we want to ensure with these reforms that planning committees, and their valuable time, are focused on the most controversial applications where their democratic oversight is best placed.
Sir Ashley Fox
I am grateful to the Minister for being so generous with his time. One reason why so many HMOs are required is the lack of social housing, certainly around Bridgwater. I have had developers approach me who have completed a private scheme, and they want housing associations or a charity to take those social houses off their hands, but they have not got the funds to do it. I have raised this with the Minister before, and he told me that he set up a register to match housing associations with developers who have social housing to effectively dispose of the units. Could he update us on how successful that register has been?
Matthew Pennycook
The register was successful in its aims in terms of providing operators with a chance to submit uncontracted, unsold section 106 units. Roughly over 4,000 units were put into that clearing service, which closed on 1 June. Through the policy intervention we made, we encouraged local authorities to consider how best to get those units moved, cascading to market sale in instances where they felt that they needed to do that. But that small number, which is far below the estimates we heard from some quarters, is a sign that some of the problem is working itself out. We are providing registered providers of affordable housing with greater financial capacity through our rent settlement, rent convergence and all the interventions we are making. Those measures are allowing them to buy more section 106 units and get those stalled schemes moving.
To conclude, local planning authorities already have powers to restrict the proliferation of HMOs. They already benefit from or can deploy licensing powers to ensure that HMOs are safe and well managed, and they do have, we believe, robust powers to ensure that landlords of HMOs comply with all relevant regulations.
As I said, I am very interested to hear from hon. Members about particular cases where they think that their local authority is not able to enforce the regulations that already exist, and of instances of actors circumventing that system—I was very interested in the example that my hon. Friend the Member for Bexleyheath and Crayford gave. Those are the types of things we want to work through. If it transpires through those examples that the regulations are lacking in some way, we will take that into account. I have made it very clear that we keep the regulation of HMOs under review to ensure that the system works in the way that we want to see it work.
Question put and agreed to.