London Property Licensing has discovered proposals for new HMO planning restrictions in the London Boroughs of Croydon and Lewisham.

Under existing planning rules, landlords can convert a family home into a small HMO with up to six occupants without needing planning permission. All HMOs with seven or more occupants need planning permission for change of use.

The proposed planning policy change - an HMO Article 4 Direction - removes these permitted development rights, meaning all new HMOs in the designated area would require planning consent. Whilst these planning changes enable the council to restrict the spread of new bedsit-style HMOs, it can also impact on students and young professionals seeking house and flat shares on a single tenancy.
Once an HMO Article 4 Direction is in force, letting shared accommodation to three or more people will need planning permission.

Croydon HMO planning restrictions are being introduced borough wide
Croydon Council has said it wants to protect family homes by requiring planning permission to convert all single family properties into HMOs. According to Croydon Council, research has identified a shortage of family homes in the borough and over the past 10 years, hundreds of family homes have been converted to HMOs.

The council is holding a six-week consultation that started on 24 January 2019, and is inviting feedback from all interested parties. At the end of this period, and after reviewing comments made by the public, the council will decide whether the Article 4 Direction is to be confirmed.