Since April 2006, certain types of Houses in Multiple Occupation (HMOs) have had to be licensed by LAs (under HA 2004). These include properties that are let to three or more Ts, who form two or more households. Note, however, that there are now planning issues to be considered – and some Ls who may have already incurred costs in converting their properties to meet HMO licensing standards, may now find that they cannot obtain planning permission if they live in an area with a high concentration of HMOs.

Previously, HMOs were not classified within planning law, and generally planning permission would be needed before a dwelling house could undergo a change of use so as to become an HMO. However, that would depend upon the circumstances of the particular case, and it has generally been possible for a dwelling house that was occupied by a family to be subsequently occupied by a group of six individuals, living in a single household, without the need for there to be planning permission. That position has now changed, with the creation of a new planning use class (Class C4). The creation of this Class C4 means that planning permission is now needed for the use of the property as a dwelling house by between three and six unrelated occupants, who form two or more households, and who share basic amenities. Note that small bedsits will be classified as C4, as will part-time occupiers (eg students or migrants who do not occupy the property all of the year) and they will be considered as occupying the property as their main residence, and must therefore be included in the calculation of occupation numbers. However, the DCLG has announced that ‘the existing stock of HMOs will not be affected by the change’ since they will have ‘established use’ as at 6 April. Accordingly, if L is already renting out his property as an HMO, he would not need to obtain C4 planning permission. But, it does seem that if the lease expires, he would then need to apply for permission if he wants to continue renting it out as an HMO, unless he can obtain a certificate of lawful use.

The introduction of these new (and complex) planning rules will undoubtedly lead to a large number of new planning applications. At the same time, there may well be Ls who decide to withdraw from the HMO market, rather than deal with the complexities of the licensing and planning regimes.