HMO planning and licensing in London: the two approvals you need

Letting a London property to sharers can involve two separate council processes: planning and property licensing. They answer different questions, and approval under one does not replace approval under the other.

Not every house in multiple occupation needs a fresh planning application or an HMO licence. However, every landlord should check both requirements before buying, converting or changing how a property is let. We explain where the main risks arise.

Planning permission and licensing: what is the difference?

Planning considers whether the use of a property as an HMO is acceptable in its location. The council may assess housing policies, concentration of shared accommodation, neighbours’ amenity, refuse storage and cycle parking.

Licensing focuses on occupation, management and safety. It can set limits on the number of occupants and require suitable facilities, room sizes and management arrangements.

A licence does not establish that the planning use is lawful. Equally, planning permission does not authorise you to operate without a licence where one is required.

When does an HMO need planning permission?

Under the Town and Country Planning (Use Classes) Order, an ordinary home generally falls within Class C3. A small HMO occupied by between three and six people sharing basic amenities generally falls within Class C4, subject to the statutory definition.

The General Permitted Development Order normally allows a change from C3 to C4 without a planning application in England. However, councils can remove that right through an Article 4 direction.

This makes the property's exact location important. An Article 4 direction may cover a whole borough or a defined area. We check its boundary, wording and commencement date rather than relying on general advice about HMO planning permission in London.

An HMO with more than six residents will generally be treated as sui generis, meaning outside the standard use classes. Moving from a house or small HMO to that use will normally require planning permission. Existing permissions and planning conditions also need checking.

When is an HMO licence required?

Under the Housing Act 2004 and the regulations governing mandatory HMO licensing in England, a property generally requires a mandatory licence where five or more people from two or more households occupy it and share facilities such as a kitchen, bathroom or toilet. Specific exclusions apply.

A household is not simply everyone named on one tenancy agreement. Unrelated friends sharing a home will normally form separate households.

London boroughs can also introduce additional licensing schemes covering smaller HMOs that fall outside mandatory licensing. Selective licensing is another separate regime that may apply to other privately rented homes.

We recommend checking the council’s current scheme, designated area and exemptions for the particular property. Do not assume that arrangements in a neighbouring borough are the same.

Check the layout before committing

Planning and licensing assessments can expose different problems with the same proposal. A layout may appear workable on a drawing but fall short on bedroom sizes, shared facilities or fire safety.

National minimum sleeping-room standards apply to licensed HMOs, while councils may require more generous accommodation through their applicable standards and assessments. Building Regulations requirements must also be considered separately.

Before works start, we recommend bringing together the planning history, proposed occupancy, measured plans, amenity standards and fire safety advice. For an existing HMO, evidence of when and how the use began can be important when considering a lawful development certificate.

Get both routes clear from the start

At Simplicity Designs, we help London homeowners and landlords assess the planning route, prepare layouts and submit planning applications. Establishing the licensing requirements alongside that work helps avoid designing around the wrong occupancy assumptions.

To discuss HMO planning and licensing requirements for your property, call our team on 0203 026 2883 or send your details to info@simplicity-designs.co.uk.