Houses in multiple occupation (HMO)

Licensing for Houses in Multiple Occupation (HMO).

Planning permission and HMOs

Croydon Council’s expectation is that landlords will ensure planning permission is in place before applying for a Mandatory HMO licence, or using a property as a Non-Mandatory HMO with or 3 or 4 tenants.  An HMO should have a permission or consent for its use, or the property owner should ensure that they are able to demonstrate that the property has established use for use as an HMO.  In these circumstances no further planning consent is required.

An Article 4 Direction is in place in Croydon.  As such, any HMO of 3 to 6 people created after 28 January 2020 (C4 Use Class) must have appropriate planning consent.

This direction does not affect the need for larger HMOs which accommodate 7 or more people to have appropriate planning consent.  This requirement has been in place for many years.

On receipt of a HMO licence application, we will take into account the planning status of an HMO when determining whether to refuse an application or to grant a licence with a term reduced from the maximum five years, commonly one year.  The expectation is for the correct planning permission to be place so no further authorisations are required.  If a reduced term licence is granted, for example, due to a breach of planning control, the landlord should take all necessary steps to address this within the licence term.  

The expectation is always for the landlord or property agent to be proactive with ensuring compliance with planning legislation, local policies and guidance.  Remedies can be achieved either by fixing the breach (returning an unauthorised HMO back to single family use) or getting the necessary planning consent.  At the end of the licence term, the need for a further licence application can then be reviewed.  

Licence fees are non-refundable, even if planning consent is subsequently refused.  

A landlord or property agent responsible for an unlicensed property may be committing an offence under section 72(1) of the Housing Act 2004, at risk from a rent repayment order under Chapter 4 of the Housing and Planning Act 2016 and maybe unable to use section 21 notice under the Housing Act 1988 as a result of section 75(1) of the Housing Act 2004.
 

Read more about the Article 4 Direction.

More information about Planning and building control requirements.

To understand how operating an unlicensed HMO may further impact a landlord or property agent, see the other sections in this guide,