English Councils Tighten HMO Rules as Refusals Double
Published on 09/01/2026 at 05:37 | Editorial boerse-global.de
Local authorities across England are cracking down on Houses in Multiple Occupation (HMOs), with new data showing planning refusals have doubled in five years and stricter licensing frameworks now in place. The shift matters for UK landlords and letting agents, who face higher refusal rates, tougher density controls, and the prospect of significant fines under proposed new rules.
Refusal Rates Double as Councils Tighten Controls
An analysis of 144 English councils reveals that planning refusals for HMOs rose from 590 to 1,203 over a five-year period. The approval rate for these properties fell to 63% in 2026, down from a 68% average maintained between 2021 and 2023. Between 75 and 80 local authorities have now implemented Article 4 directions, which remove automatic permitted development rights for HMO conversions.
In Bolton, the council has received 63 HMO applications since introducing an Article 4 direction on June 13. Of those, 38 were refused and 22 approved — a refusal rate of approximately 65%, far above the national average of 13% for all planning application types.
The council is now considering a Local Plan policy that could introduce percentage limits on HMOs, or ban them entirely in wards with high concentrations of such housing.
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Other authorities cite safety and living standards as primary reasons for rejection. Hyndburn Council recently refused plans for a five-bedroom HMO in Accrington, flagging cramped living conditions, insufficient storage, and fire safety concerns. That authority has operated under an Article 4 direction since March 2026.
In Stockton, Keenes Care Ltd withdrew an application in August 2026 to convert a 10-person HMO into a children's home, having initially submitted the plans in June.
Consultations Open on Licensing and Fines
Several jurisdictions are seeking formal input on new enforcement measures. Rotherham is running a consultation, open until October 8, 2026, on proposals for new licenses and financial penalties for breaches of housing laws.
Nationally, the Renters' Reform Coalition and 30 associated organisations have written to Minister Matthew Pennycook advocating for the expansion of the Private Rented Sector (PRS) Database. The group wants rent and eviction data included in the system. Under the proposals, landlords could face fines of up to £7,000 for failing to register and up to £40,000 for providing false information.
Similar regulatory shifts are happening beyond England. The Cayman Islands is consulting on a rental bill until September 20, while Greece is preparing legislation for early 2027 that would allow a 51% majority in apartment building meetings to decide on Airbnb permissions and property repairs.
Industry Calls for Training Standards and Tax Reform
The National Residential Landlords Association (NRLA) has raised concerns about how private rentals are managed. A recent poll found that while 66% of private tenancies in England and Wales are administered by letting agents, satisfaction levels vary considerably.
Data from the English Housing Survey 2024/25 shows that 59% of renters in fully managed properties were satisfied with repairs, compared with 73% of those whose properties are managed directly by landlords.
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In response, the NRLA is calling for minimum training standards for agency staff. The organisation is also urging the government to implement tax reforms, including changes to Capital Gains Tax and the restoration of Local Housing Allowance rates, to support rental housing supply as 1.34 million households remain on social housing waiting lists.
Local agencies, including Stephenson Browne, have advised landlords to review their support structures as the regulatory environment shifts under the upcoming Renters' Rights Act.
