Lambeth Council in south London is pressing ahead with new planning controls to restrict the number of smaller Houses in Multiple Occupation (HMOs), despite only limited feedback from residents during consultation.

The authority says concerns were raised in two Streatham wards about the “notably high number of HMOs” and their “associated impacts” – including anti-social behaviour, the loss of family homes, and changes to local character.

Under a newly introduced Article 4 Direction, anyone seeking to create a new small HMO in these areas will now be required to apply for planning permission.

📊 Consultation response:

• Total responses: 153
• Supporting or citing negative impacts: 103

A spokesperson for the Labour-run council said: “We are taking firm action to address the negative impacts of HMOs on our residents. This planning mechanism will help control the number and impact of any additional HMOs, protecting family homes and our local communities.”

When deciding applications, Lambeth will be able to take into account the loss of family housing, along with issues of amenity and parking pressures.

Propertymark’s concerns

Industry body Propertymark has previously warned against the widespread use of Article 4 Directions, arguing that they can have the unintended consequence of reducing rental supply at a time when demand for shared housing is high.

A spokesperson said:  “Article 4 Directions often remove one of the few flexible, affordable housing options available to renters, especially young professionals and students. At a time of housing shortage, restricting HMOs risks displacing tenants into more expensive or unsuitable accommodation.”

Propertymark also cautions that limiting HMOs could discourage investment in the private rented sector, just as new licensing schemes and regulatory changes are already increasing costs for landlords.

The move follows the council’s decision last year to launch a borough-wide landlord licensing scheme, meaning landlords in Lambeth now face both licensing and planning controls when providing shared housing.