URL: https://committees.oldham.gov.uk/ieDecisionDetails.aspx?ID=5548

Decision Maker: Cabinet

Outcome:

Is Key Decision?: No

Is Callable In?: Yes

Purpose:

Content: The Cabinet received a report of the Executive Director of Place/Deputy Chief Executive which set out the current issues and position regarding Houses in Multiple Occupation (HMOs) across the borough. The report was presented  in response to recent motions that were presented to full Council, on 16th July 2025, regarding this matter and the report also provided information to Members on the options available to introduce a boroughwide Article 4 Direction, to remove the permitted development right allowing the conversion of dwelling houses (Use Class C3) into HMOs for up to six residents (Use Class C4).   Over the last few years, and more recently through council motions, members have highlighted their concern with the number of Houses of Multiple Occupancy (HMOs) that are currently being introduced across the borough. It is recognised that HMOs provide a much-needed source of housing for various groups in need within the borough, including young people, students, and single person households. However, poorly managed and maintained HMOs, especially where clusters of HMOs arise in one place, can have a detrimental impact on local areas.    To address these concerns, where appropriate, the Council can adopt an Article 4 Direction to remove the permitted development rights that enable a C3 dwelling to be converted to a C4 “small” HMO. This would require such conversions to first apply for planning permission for the change of use.  Requiring the submission of a planning application for such proposals will not necessarily reduce the number of C4 HMOs being created, but it does allow for the proper consideration of the effects of a proposed HMO on an area's amenity and local community, before issuing any planning permission and, in doing so, we are able to influence the quality of the HMO through the planning process.    The submitted report: ·         Outlined the recent motions presented at council on the 9 April and subsequently 21 July 2025 on the introduction of an Article 4 Direction for HMOs. ·         Sets out the legislation regarding Article 4 Directions and the process for implementation. ·         Outlines the current position and evidence regarding HMOs across the borough. ·         Identifies the options available for the introduction of an Article 4 Direction for HMOs, specifically whether it focuses on specific areas or is boroughwide.   The Cabinet was advised that informed by the evidence presented in the submitted report, the preferred option was to introduce a Non-Immediate Article 4 Direction on Houses of Multiple Occupation that would be implemented on a borough-wide basis. If this was to be agreed, a period of consultation from 29th September to 9th November 2025 for six weeks will take place, after which the Cabinet Member for Neighbourhoods would then be requested to consider whether to confirm the Direction and bring it into effect on 1st January 2026, having considered all consultation comments received.   Further to the recommendations that were presented in the submitted report, the meeting was advised of an update to recommendation three to read as follows: ‘Consider that a further report be brought back to a meeting of the full Council at the first available opportunity to consider the outcome of the consultation, as well as Cabinet, to determine if the Article 4 Direction should be confirmed’.   Options/Alternatives considered: Option 1 – a Non-Immediate or Immediate Article 4 Direction. The main benefit of an immediate direction is that the Council would gain control over the issue and respond to members and communities’ concerns from day one the direction is acknowledged. However, it is considered that: •           Introducing a Non-Immediate Article 4 Direction with a period of six weeks consultation will raise awareness that the implementation of the Direction is forthcoming. This can help to reduce the risk associated with introducing the Direction and minimising potential exposure to compensation claims, as the Council’s decision to introduce the Direction and the date on which this is to be confirmed will be in the public domain at the earliest opportunity. •           In addition, the introduction of an Immediate Article 4 Direction has a substantially higher evidence threshold whereby the local planning authority would be required to demonstrate that the development to which the direction relates would be prejudicial to the proper planning of the area or constitute a threat to the amenities of the area.  It is not considered that this higher evidence threshold is currently being met anywhere in the borough.   Option 2 - Borough-wide. Evidence showed that, whilst there are several potential clusters beginning to form within and around inner Oldham, along key transport routes (e.g., the A62 corridor connecting Oldham to Failsworth and Manchester - and Ashton Road) and within and around several district centres, there is still a general spread of HMOs across many areas of the borough, as shown in figure 1 above. We are therefore unable to clearly define those areas disproportionately affected. Furthermore, whilst our monitoring processes are much improved, we cannot be certain that our evidence has captured all three and four person HMOs in the borough. In addition, other authorities in Greater Manchester are using Article 4 Directions to have greater control on the location and quality of HMOs. This includes the introduction of borough-wide Article 4 Directions to address concerns of displacement that area-specific Article 4 Directions might cause.  In Wigan, for example having introduced an Article 4 Direction in Swinley and central Leigh in 2020, they are finding evidence of a displacement effect where restrictions on HMOs in one area are leading to an increase of HMOs in neighbouring areas of borough.  Salford City Council is also increasing the footprint of its current Article 4 Direction on HMOs to cover a much broader area, in response to a similar displacement effect, and Bolton Council has also just been through the process of introducing a borough-wide Article 4 Direction. Therefore, given concerns around the proliferation of HMOs in various parts of Oldham, and that these are spread across many of areas of the borough, if Cabinet consider that the evidence does justify an Article 4 Direction, it is felt prudent to apply that Direction borough-wide. This will avoid any effects of displacement as witnessed by other GM districts and ensures a consistent approach going forward. If Cabinet do decide to make an Article 4 Direction for HMOs in Oldham, planning applications for the conversion of C3 dwellings to C4 HMOs will, for the time-being, be considered on the same policy basis that planning applications for HMOs are already considered, having regard to issues such as amenity, character and highway safety   However, through the proposed new Local Plan for Oldham, updated policies will be included that allow a more nuanced approach to planning for HMOs in the borough, particularly geared toward avoiding clusters of HMOs on any given street and ensuring that the space and design standards of rooms in HMOs are adhered to, to avoid over-crowding and poor living conditions. Option 3 - Area-specific.  As evidenced, the data identifies several areas where clusters of HMOs appear to be forming within and around inner Oldham, along key transport routes and within and around several district centres. However, there is still a general spread of HMOs across many areas of the borough, and we are unable to clearly define those areas disproportionately affected. Coupled with concerns of potential displacement, it is considered an area-specific Article 4 Direction would not provide the consistency and control required to ensure that HMOs do not negatively impact on the amenity of our local communities and the character of the borough. Option 4- No Article 4 Direction. Having no Article 4 Direction in place would mean that small HMOs would continue to come forward as they do at present as permitted development. The council would therefore have limited control as to how and where these come forward.  The council would still have some control over those HMOs that are for 5 to 6 people though as, whilst planning permission is not required for these, they would need to have a HMO Licence. An Article 4 Direction would not stop HMOs coming forward in the borough, but it would mean that the Council is able to assess the impact of all HMOs on a case-by-case basis, having regard to the individual circumstances and location of the development. A Direction would enable the Council to better manage HMO concentration and prevent the formation of imbalanced communities, as well as reduce any negative impact on local amenity. It would also give residents a voice and a transparent process to ensure that their views are heard. Option 1 was the preferred Option.   Resolved: 1.    That the Cabinet consider the evidence presented in this report and the information provided in respect of the options for the introduction of a boroughwide Article 4 Direction for Houses in Multiple Occupation (HMOs). 2     That the Cabinet make a Non-Immediate Article 4 Direction to remove permitted development rights for the change of use from Use Class C3 (dwelling houses) to Use Class C4 (small houses in multiple occupation) on a boroughwide basis, in line with the details set out in the report and the Article 4 notice presented at Appendix 5, of the submitted report. 3     That the Cabinet consider that a further report be brought back to a meeting of the full Council at the first available opportunity to consider the outcome of the consultation, as well as Cabinet, to determine if the Article 4 Direction should be confirmed.

Date of Decision: September 22, 2025