Agenda item

The report provides the Committee with an update on the impacts of Houses in Multiple Occupation (HMOs) in the Borough and progress on implementing the Article 4 Direction scheduled to take effect in March 2026 (“the March 2026 Article 4 Direction”). This Direction removes permitted development rights for small HMOs in specified areas of the Borough. The report also sets out further recommendations regarding the investigation of extending Article 4 Direction coverage to those electoral wards not currently included.

Recommended        - That the Resources Overview & Scrutiny Committee note the content of the report and supports further work to explore the potential extension of HMO Article 4 Direction coverage across the remainder of the Borough.

The Cabinet Portfolio Holder for Planning, Councillor Munsif Dad, and Head of Planning and Transportation, Adam Birkett, submitted a report to provide the Resources Overview & Scrutiny Committee with an update on the impact of Houses in Multiple Occupation (HMOs) in the Borough and progress on the implementation of the Article 4 Direction, scheduled to take effect in March 2026 (the’ March 2026 Article 4 Direction’).  This Direction removes permitted development rights for small HMOs in specified areas of the Borough.  The report also sets out further recommendations regarding the investigation of extending Article 4 Direction coverage to those electoral wards not currently included.

Councillor Dad referred to the content of the report which may lead to an extension to the Article 4 Direction.  In addition, other Boroughs had been monitored, and this information would be used to decipher any further action by the Council.

The Head of Planning and Transportation provided details of the implementation of the Article 4 Direction due to come into force in March 2026.  He explained that this would remove permitted rights, giving the Council full control of how planning permission was determined for 9 wards.  The remaining 7 wards would not have this coverage and, therefore, may feel the effect of displacement and overspill into their wards.  He pointed out that they were aware of Chorley and Rossendale beginning borough wide Article 4 Directions.  The Committee was informed that this did come with risks, in respect of possible compensation claims, and this was being taken into consideration.  He did note that Chorley had 31 HMOs borough wide and Hyndburn had 185 HMOs.

Advanced Questions and Responses:

1)    There had been disappointment that other wards had not been included in Article 4 Direction.  Could you explain the timescales for potentially including more wards/the whole Borough in the Article 4 Direction? 

The Head of Planning and Transportation explained that the current Article 4 Direction could be modified to include the remaining wards but this would mean withdrawing the Article 4 Direction first.  He, therefore, proposed that an application for an additional Article 4 Direction which, if approved, would take effect in 12 months’ time.  The aim would be to align an additional Article 4 Direction with the current one, due to come in force on 15^th March 2026, should relevant approval be given.  However, he also pointed out that work on an additional Article 4 Direction would require additional resources, in the form of staffing and finances.   

2)    Blackburn with Darwen Borough Council has included the whole Borough in their Article 4 Direction.  Are you using their experience to provide more information about the possible challenges of including the whole borough in the Article 4 Direction.

He referred to how the Council had monitored the use of Article 4 Direction coverage of the whole of a borough by other authorities and was aware of the challenges of proceeding to apply for a further Article 4 Direction.  He explained how evidence would be collated to submit a good case.

Members submitted the following comments and queries:

·         Other authorities had used Article 4 Direction to cover the whole of their boroughs.

·         Would a further Article 4 Direction, covering the whole of the borough, overlap with the licensing of landlords?

·         Did the number of HMOs in a ward contribute to the need for a ward to be covered by an Article 4 Direction?

·         The current coverage of the Article 4 Direction split areas and did not make sense as the demographic was almost the same. 

·         Reference was made to 3.16 of the report and showed that there had been ‘no evidence’ to indicate that HMO numbers had increased in wards not included in the March 2026 Article 4 Direction, which is consistent with the fact that the Direction has not yet taken effect.’

·         Did the Planning Department have enough resources to deal with the extra work required to implement an additional Article 4 Direction?

·         What was the definition of an HMO?

Councillor Dad indicated that it was the Council’s intent to proceed with an Article 4 Direction covering the whole of the borough, as soon as possible.  He indicated that a report would be submitted to Full Council in the New Year providing further details of a plan.

The Head of Planning and Transportation explained that an Article 4 Direction did not impact the licensing of landlords as this was two separate regimes.  He informed the Committee that there was no threshold for HMOs in a ward to justify the implementation of an Article 4 Direction.  He explained that resources in the Planning Department were limited and that some work may be outsourced but Officers would also, be required to pick up work. 

The definition of a house of multiple occupancy (HMO) was a property occupied by two or more households with shared facilities.  He explained that properties such as bedsits occupied by 3 to 6 people, forming more than one household with shared facilities would be considered a HMO. 

The Environmental Health Officer (Housing Standards) explained that there were multiple definitions for HMOs in legislation, including in relation to planning, licensing and smaller HMOs which were outside of the scope for licensing.

The Head of Planning and Transportation clarified that the implementation of an Article 4 Direction did not mean that planning applications would be refused but explained that it would make sure that planning permission was sought and give Councils more control. 

Resolved                               -   That the report be noted.