Stricter HMO Rules in Derby: What It Means for Landlords and Tenants

Stricter HMO Rules in Derby: What It Means for Landlords and Tenants

Derby City Council is set to tighten planning controls around Houses in Multiple Occupation (HMOs), with the council’s cabinet meeting to decide on proposals for stricter regulations.

If approved, landlords will soon be required to apply for planning permission before converting properties into smaller HMOs, in addition to the already required permission for larger HMOs. This move is part of a broader effort to address concerns raised by residents about the concentration of HMOs in certain areas, such as anti-social behaviour, crime, parking pressures, and strain on local services.

What is a HMO?

A HMO is a property shared by at least three unrelated tenants who share facilities like bathrooms and kitchens. While larger HMOs have long required planning permission, smaller HMOs have historically been exempt under national planning laws. This is set to change, with tighter controls now on the horizon.

Derby’s introduction of an Article 4 Direction would impose stricter local requirements for HMO conversions. This would allow the council to regulate HMOs more effectively by enforcing standards around property conversions, licensing, and quality control. If passed, the new regulations will take effect in May 2025, providing the council with greater control over where and how many HMOs can be established.

Why Tighten the Rules?

A recent nine-week public consultation yielded over 240 responses, with a majority supporting the proposed restrictions. Concerns centred around the negative effects of high HMO concentrations in specific areas, including anti-social behaviour and overburdened local infrastructure.

Supporters of the tighter rules believe the proposal will help maintain the quality of housing and ensure landlords meet higher standards. Many also suggested extending these rules to all city wards to maintain consistency across Derby.

Mark Richardson, Partner at BB&J Commercial, shared his thoughts on the proposed changes:

“Derby is finally taking steps towards regulating HMOs through the implementation of Article 4 Direction, which I believe is a positive move. I’ve been working on HMO development and valuations across the East Midlands for over a decade, and I’ve seen both excellent and poor-quality properties. While regulations are needed, it’s important to acknowledge that the overall standard of HMOs has significantly improved in recent years, with many now meeting a high ‘Airbnb’ standard.”

Richardson stressed the importance of not overgeneralising the impact of HMOs. Many HMO tenants in Derby are professionals employed in sectors such as the railways, the Rolls-Royce supply chain, or the healthcare industry. These individuals often require flexible, affordable accommodation during the working week.

“HMOs play a vital role in Derby’s economy,” Richardson explained. “We have a large ‘Monday to Friday’ workforce, and HMOs provide affordable, convenient housing solutions for them. Restricting these properties could lead to unintended consequences, especially at a time when Derby needs to attract more residents and businesses.”

The Bigger Picture

The new regulations in Derby mirror similar policies already in place in nearby cities such as Nottingham and Leicester. As part of a broader review of the national planning system, the UK government has targeted the delivery of 1.5 million new homes over the next five years, with a focus on affordable housing.

Richardson warns that while regulation is necessary, it is important that Derby does not stifle its housing options in the process.

“In rushing to restrict HMOs, we must not forget that these properties are often a solution to housing challenges, not the cause of them. Derby must strike a balance between ensuring quality housing and continuing to provide flexible accommodation that meets the needs of its workforce.”

Looking Ahead

As Derby prepares for these changes, landlords and developers should familiarise themselves with the proposed regulations and begin preparing for the new planning requirements. If passed, the council will issue guidance outlining the criteria for new HMO developments.

At BB&J Commercial, we are here to help guide you through these changes, whether you’re a landlord seeking advice or a developer looking to convert properties. Contact Mark Richardson for expert assistance on how these changes could affect your property plans.

Call: 01332 292825

Email: commercial@bbandj.co.uk

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