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Government warned over impact of HMO housing restrictions

The British Property Federation (BPF) has reacted to a new report published today by warning that restricting Houses in Multiple Occupation (HMOs) could limit housing supplies for those most in need of affordable homes.

The report, published by the department for communities and local government, looks at the perceived problems that can be created where there are concentrations of HMOs.

This issue, which is often given greatest prominence in university towns, leading to so called ‘studentification’, has led some backbench MPs and local authority officers to argue for greater planning controls over HMOs.

This has been strongly resisted by landlord organisations, including the British Property Federation (BPF), and its affiliated landlord associations around the country.

The BPF believes it is nonsensical to treble student numbers in a decade and then try to restrict an affordable supply of property to house them.

The report by economic consultancy, ECOTEC, considers three courses of action:

- Doing nothing.

- Promoting the use of non planning related mechanisms and planning policy levers through wider ‘best practice’ dissemination.

- Amending the Use Classes Order (UCO) to provide a definition of HMOs and allow tighter planning controls over houses in multiple occupation.

It will be for government to decide which course of action is followed as part of its deliberations on the forthcoming Housing Reform green paper.

The report suggests the ‘best practice’ option should be pursued in the short-to-medium term, with amendment to the UCO only being something that is contemplated after far deeper research and consultation.

In reaction, Ian Fletcher, director of residential policy at the BPF, said:

“If you expand student numbers by 1.5 million over a decade and a half those kids have got to live somewhere. What other country in the world would send its young people off to university without making proper provision for where they will live– a gap which the private sector has proudly filled.

“HMOs are not only an important source of accommodation for students, but also for people who are often least able to put a roof over their heads in society. Placing planning restrictions on this important source of affordable accommodation is something we will be arguing strongly should be resisted because it will restrict supply, raise rents and could be used unscrupulously to restrict particular groups in society to particular areas in towns and cities.

“Today’s report is balanced and illustrates that local authorities, universities and partners have a range of existing powers and practices which they could be using now. It also shows that government needs to do a lot more work before it can sensibly consider any amendments to planning powers. In doing so it should not forget that those who will suffer will be the poorest in society and the students least able to afford to go to university.”

For more information please contact Andrew Teacher on 07968 124545 / ateacher@bpf.org.uk or Maddie Williams on 020 7802 0364 / mwilliams@bpf.org.uk