Merton Closes HMO Loophole to Protect Affluent Areas from Patchy Regulations

Merton Council to Enforce Stricter Regulations on Shared Housing

Merton Council is poised to implement permanent restrictions on shared housing, aiming to close a planning loophole that has previously enabled the establishment of small Houses in Multiple Occupation (HMOs) without the necessity for full planning permission. This initiative extends to affluent areas such as Wimbledon Village and is spearheaded by the Labour-led council, which plans to make its Article 4 Direction permanent across an additional 13 wards. Consequently, any future conversion of a family residence into a small HMO will require comprehensive planning consent.

This decision positions Merton alongside a growing number of local authorities that are seeking to reinforce regulations concerning the contentious issue of shared housing developments. Article 4 Directions empower local councils to rescind permitted development rights, thus mandating landlords to secure full planning permission before converting properties into small HMOs. If approved at the upcoming Cabinet meeting on 13th July, Merton’s expanded Article 4 Direction will encompass the wards of Abbey, Cannon Hill, Hillside, Lower Morden, Merton Park, Ravensbury, Raynes Park, St Helier, Village, Wandle, West Barnes, Wimbledon Park, Wimbledon Town, and Dundonald.

Expanding Coverage Across the Borough

The council initially implemented an Article 4 Direction in its seven eastern wards in November 2022. The forthcoming expansion in 2026 will result in the entire borough being subject to these stricter regulations. Feedback from a recent consultation indicated that the existing partial coverage had prompted pressure to be shifted into the areas still lacking restrictions, with developers increasingly targeting those remaining “uncontrolled” regions in the west. Council officers anticipate that extending the Article 4 Direction throughout all wards will eliminate that incentive, fostering a uniform approach to the management of shared housing across Merton.

While HMOs offer a relatively affordable housing solution, particularly in urban settings where demand remains robust, concerns frequently arise regarding their management. Issues such as overcrowding, substandard living conditions, and safety hazards have been reported. One resident recounted an incident where emergency services had to be summoned after a converted HMO property was left unattended with a fan heater running for several days, necessitating the fire brigade to forcibly enter the premises. Another resident described disruptive and seemingly unauthorised construction activities associated with an HMO conversion, stating, “They were breaking all the rules, and it was hell living through the constant noise.” Additionally, there are fears that the increasing number of HMOs is altering the character of traditionally family-oriented neighbourhoods.

Community Concerns and Political Support

Local MP Dame Siobhain McDonagh, representing Mitcham and Morden, has voiced her endorsement of stricter controls, citing the challenges of antisocial behaviour, crime, and environmental issues that often accompany HMOs. The consultation process also highlighted the importance of inclusivity, with one wheelchair user expressing dissatisfaction with the lack of attention to accessibility standards in the broader discussion on HMO policies, warning that housing reforms may inadvertently neglect the needs of disabled residents.

Conversely, the proposals have sparked apprehension among landlords and property owners, who caution that the new regulations could exacerbate pressures on an already strained housing market. An investor with a £12 million portfolio articulated concerns that the costs associated with planning applications would ultimately be passed on to tenants in the form of increased rents. Smaller landlords echoed these sentiments, arguing that such stringent regulations might drive responsible operators out of the market, thereby diminishing the availability of affordable shared accommodation.

Regional Trends in Housing Regulation

Nearby boroughs such as Croydon and Sutton have also enacted extensive Article 4 Directions, despite facing significant housing shortages. Croydon Council established its Article 4 Direction in 2020, resulting in the borough becoming one of the most restrictive authorities in the country for HMO approvals. Notably, recent reports revealed that Croydon rejected nearly two-thirds of the 405 HMO applications it received between 2021 and 2025, a figure that significantly exceeds the national average.

Residents are encouraged to stay informed about these developments and their implications for local housing. For the latest updates and news, individuals can subscribe to the MySouthLondon newsletter.