The Housing, Economy and Business Committee of Sutton Council met on 25 November 2025, and approved a new licensing scheme for houses in multiple occupation (HMOs) and a change of tenure for a block of flats at Beech Tree Place to affordable rent. The committee also noted a bi-annual performance report and the outcome of a Regulator of Social Housing inspection.

HMO Licensing Scheme Approved

The committee approved a proposal to designate a borough-wide additional HMO licensing scheme¹. Adam Lucas, team leader in the residential enforcement team, introduced the proposal, explaining that it would regulate smaller HMOs that fall below the mandatory licensing threshold. The report stated that a recent House Conditions Survey had identified problems with poor property conditions, inadequate management standards, and negative impacts on the wider community. The additional licensing scheme aims to enhance tenant safety, hold landlords accountable, and reduce instances of anti-social behaviour.

Councillor Ed Parsley, Vice Chair of the Housing, Economy and Business Committee, who said he had lived next to an HMO for 27 years, supported the scheme, stating that it would standardise expectations and enforce good behaviour. He asked how the licensing regime would interact with the recent Article 4 directive². Fiona Means, Group Manager for Regulatory Services, clarified that the two pieces of legislation work in tandem, with planning permission now required due to Article 4, and the licensing scheme regulating the standards of HMOs once they are in place. Councillor Wendy Clark raised concerns about enforcement, emphasising the need for resources to enforce the scheme effectively across the borough. Adam Lucas assured her that the licensing fee would provide the resources to do the inspection and enforcement, and that the council would work with planning and revenue and benefits teams to identify properties evading licensing. He also mentioned civil penalty notices of up to £40,000 for non-compliance, which would be ring-fenced for housing enforcement.

Councillor Steve Alvarez raised concerns about enforcement and the standard of living accommodation in HMOs, relating his own experiences and stating that the council was pretending to be strict on HMO licenses .

Councillor Richard Choi raised concerns about the cost of the license being passed on to tenants or forcing landlords to quit the market, reducing supply and increasing rent. Adam Lucas responded that the licensing fee was £285 per letting room for the five-year license, which he argued was negligible over the course of the five years.

Councillor Hicks raised the issue of planning officers not having standards to work to when considering HMO planning applications. Spencer Palmer, strategic director of environmental housing neighbourhoods, responded that the council was aligning the planning and licensing processes as much as possible, and would ensure that planning officers and committee members were aware of the licensing scheme conditions.

Councillor Ed Parsley asked about enforcement, and whether properties were checked again after a license had been granted. Adam Lucas responded that ideally there would be at least one or two inspections over the five year period, and that the council would always respond to concerns by neighbours or complaints by tenants.

Councillor Wendy Clark raised concerns about data presented in the report that was difficult to understand, and Spencer Palmer acknowledged that some of the supporting papers were full of jargon and technical, and that in future the council would review the information provided and consider making attachments available on request rather than publishing them.

The committee voted to approve the proposal to designate a borough-wide additional HMO licensing scheme.

Regulator of Social Housing Outcome of Inspection

Lynna Rosler presented a report on the outcome of a recent inspection by the Regulator of Social Housing, in which Sutton Council was awarded a C1 rating, the highest possible judgment for compliance with the new housing consumer standards³. She stated that Sutton Council was among a very small number of local authorities nationally to have reached this standard, and that the outcome validated the council's strategic direction and strengthened its partnership with Sutton Housing Partnership (SHP). Lynna Rosler noted positive feedback from the regulators across all of the consumer standards, including strong governance around compliance with health and safety standards, stock conditions data, and proactive work around damp and mould. She also highlighted the effective collaboration and partnerships to tackle anti-social behaviour, and the valuable contribution of residents, including the Sutton Federation of Tenants and Residents Association and the Residents Review Group.

Councillor David Hicks thanked Steve Tucker for taking SHP from the position it was in when he first joined the council to where it is now, stating that the organisation was now responsive to its tenants and leaseholders. Councillor Ed Parsley echoed this, thanking everyone involved in making the result happen and emphasising that it was a product of design and hard work.

Councillor Steve Alvarez raised concerns about the workmanship and repairs in tenants' properties, stating that some of the things he had seen were absolutely shocking . Steve Tucker responded that the repairs service was singled out for praise by the regulator, particularly the response to damp and mould complaints, and that fewer than one percent of repairs result in a complaint.

Councillor Richard Choi asked how the council would maintain the standard and improve on areas where performance was less strong, such as repairs response times and satisfaction with the outcomes of casework tackling anti-social behaviour. Steve Tucker responded that a number of those areas had already improved, but that these things take time to reach fruition.

Councillor Ruth Dombey congratulated everyone involved and emphasised the need to share good practice with other councils. Steve Tucker responded that the council was happy to share and was participating in a number of different groupings in the sector, including London Councils.

Councillor Wendy Clark stated that she would like an action plan to be shown to councillors, as the only time that councillors get feedback is when something goes wrong. Steve Tucker responded that there would be an embellishment plan and a delivery plan, which has been focused on regulation and meeting the consumer standards.

The committee voted to note the contents of the report and commend the achievement of a C1 rating from the Regulator of Social Housing.

Beech Tree Place Conversion to Fully Rented Scheme

The committee approved a change of tenure for Block D at Beech Tree Place from shared ownership to affordable rent. Adam Tucker, Head of Regeneration, Enabling and Development, explained that the reason for doing this was to respond to the crisis with numbers in temporary accommodation, and that moving this accommodation to being rented allows an enhanced pool of properties to move people on from temporary accommodation to. He also stated that there was a financial benefit to the council of doing this, with a saving to the general fund.

Councillor Lisa Webster supported the measures to get residents out of temporary accommodation and asked whether this would have any bearing on other schemes in the pipeline. Adam Tucker responded that the council continually thinks about the right mix of homes to build based upon the needs, and adjusts that accordingly.

Councillor David Hicks stated that he understood why it had gone over to rental, as he didn't think anybody could afford £480,000 or shared ownership of a two-bedroom flat. He raised concerns about the properties being a higher standard than other council properties, and asked whether there would be a differential rental cost and how the properties would be allocated. Adam Tucker responded that the rents are governed by the GLA and are in accordance with their stipulations, which in this instance is London affordable rent. He also stated that the council would work very closely with the allocations team to ensure that the properties are allocated in a fair and efficient manner.

Councillor Richard Choi asked about the financial risk of interest rate rises and what kind of stress testing had been done about business plans. Adam Tucker responded that the scenario testing is done through the HRA business plan scenario testing, and that they modelled a 0.5% change in interest rates and other metrics.

Councillor Steve Alvarez referred to papers from the Urgency Committee on 25 August, stating that it was agreed then to change these all over to affordable rents back in 2022. Adam Tucker responded that they did seek that funding increase, but that the funding increase was rejected.

Councillor Wendy Clark asked whether the properties with en-suites had been considered for people with medical needs who need the extra bathroom. Adam Tucker responded that this was a really good point and that all of those things are the things that they will be considering very carefully with the allocations team.

The committee voted to approve the change of tenure for Block D at Beech Tree Place to affordable rent, and to note that the resulting increase in HRA borrowing requirement of £4.89m will be referred to the Strategy and Resources Committee on 8 December 2025 for final approval.

Bi-Annual Performance Report

Katrina Lloyd, Sustainability Manager, presented the Bi-Annual Performance Report. The report provided a summary of the performance indicators, of which there are 51, covering the services of planning, revenue and benefits, regulatory services, housing enabling, housing advice service, and certain housing budget. She noted that council tax cash collection rates have risen due to changes to council tax, and that tenant satisfaction is possibly the highest it has ever been. Adam Tucker and Steve Tucker provided a brief update on the Council housing delivery numbers, confirming that the council had achieved 30% of the starts of Council homes in London as a borough. The committee voted to note the bi-annual performance report.