Shapps poised to overturn Labour's HMO rules

News Category: Industry News

Housing minister Grant Shapps is to amend Labour’s highly controversial change of planning rules for Houses in Multiple Occupation.

It is thought he may not scrap the new planning class use created two months ago and which affects houses – both rented and owned – where there are between two and six unrelated sharers.

Instead, he will let local councils decide for themselves how to handle their own HMO stock. A consultation will now follow.

Labour rushed through the change in April, without consultation. It meant that small properties which were going to be shared for the first time would need planning permission for change of use. Labour argued that the crackdown was necessary to prevent the ‘studentification’ of neighbourhoods.

But yesterday, Shapps said: “I understand the concerns of local people who see their neighbourhoods being damaged by undue concentrations of HMOs and the significant impact this is having on their quality of life. However, there are also many areas where HMOs are not causing problems and indeed provide an important supply of low-cost housing. 

“I believe that the planning system needs to take account of both these differing circumstances and allow for local solutions rather than continue with the present ‘one size fits all’ approach.

“The current rules impose a blanket requirement for planning permission in order to change use from a domestic house to a HMO. When introduced, it was estimated that these rules could result in an additional 8,500 planning applications per year and could lead to a reduction in supply. 

“I believe that we need to move away from this kind of centralised, regulatory approach which has dominated planning in recent years and create a system which encourages local people to take responsibility for shaping their communities. Decisions should reflect local priorities expressed through the local plan, rather than nationally imposed rules.

“I therefore intend to amend the HMO rules to allow changes of use between family houses and small, shared houses to take place freely without the need for planning applications. However, in those areas experiencing problems with uncontrolled HMO development, local authorities will be able to use their existing powers to restrict this freedom of movement by requiring planning applications.

“This change will allow the free development of smaller shared housing, which is a vital component of our private rented sector, unless there is a serious threat to the area.”

The revised arrangements are due to be in place by October 1.

Ian Potter, operations manager of ARLA, said: “We welcome the housing minister’s decision to change the rules for HMOs. Not doing so would have added an unnecessary layer of red tape as a further barrier for private landlords.”

The National Landlords Association called on local authorities to implement the current planning rules carefully until the consultation is complete.

David Salusbury, NLA chairman, said: “The change in the law for shared housing was rushed. As a result, its implementation by councils has created uncertainty and confusion. We are pleased to see the new Government responding to calls to rethink these unnecessary planning burdens on landlords.”


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