Tough restrictions on small HMOs

Concerns about the amount of available housing, pressure on local services, and a perceived threat to the area's character are behind the decision by Rugby Borough Council to use new powers to stop the spread of houses of multiple occupations in the town.

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Article 4 Directions were introduced under the Town and Country Planning (General Permitted Development) (England) Order 2015 and became available for councils to use in September 2024. It allows local authorities to suspend permission for certain types of permitted development, such as repurposing homes for short-term lets, second homes, or HMOs.

Striking a balance

The new rules in Rugby come into force from 23 February 2025 and will mean that property owners in the designated area must gain planning permission before changing the use of a main home into an HMO. This is the first step in a plan to adopt additional powers to control the number and location of HMOs in certain wards, with a policy set to be included in the borough’s new Local Plan.

Rugby Council stated that currently it has no way to record how many small HMOs have been developed or where they are. Once planning permission is required for these developments, authorities will be able to consider the impact of each one on the local area and allow residents to raise any concerns about the plans. A consultation in early 2024 gained significant support for the Article 4 Direction from local people.

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17 Jul 2024
First use of Article 4 powers to control short-term lets confirmed

The implementation of the new rules will mean property owners in the designated area must gain planning permission before changing the use of a main home into a second home or short-term holiday accommodation. Gwynedd Council will bring the Direction into effect from 1 September 2024.

Impact will be monitored

The early uses of this new planning power will be watched closely by the sector to evaluate how successful it is in making more homes available for residents.

Most obviously, the Direction may simply cause HMOs to proliferate in areas not covered by the restrictions, replicating the problem elsewhere. It is also probable that house prices will be impacted by controls on the way owners can use their properties.

Representing members

Propertymark will monitor the implementation of the Direction in Rugby and communicate with members in and around the area to assess the impact on the wider sector.

To input your views, contact the Policy and Campaigns Team at [email protected]

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