The Economy and Enterprise Overview and Scrutiny Committee of County Durham Council is scheduled to consider a draft interim policy for Houses in Multiple Occupation (HMOs) outside of the Durham City Article 4 areas. The committee will review the proposed policy, which aims to provide clarity on how HMO applications will be determined once new planning regulations come into effect.

Interim Houses in Multiple Occupation Policy

The primary focus of the meeting is the proposed interim policy for Houses in Multiple Occupation (HMOs) in areas of County Durham outside of the existing Durham City Article 4 areas. An HMO is defined as a building or flat where three or more people live, forming two or more households, and sharing basic amenities like a bathroom, toilet, or cooking facilities.

Currently, dwelling houses can be converted into small HMOs (housing between three and six residents) without requiring planning permission, a process known as 'permitted development'. However, local authorities can remove these permitted development rights through an Article 4 Direction if there is evidence of a local need to control the spread of HMOs.

The council has identified an increase in HMOs outside of the Durham City Article 4 areas and is implementing a further Article 4 Direction, which will remove permitted development rights across the remainder of the county from 17 August 2026. To ensure clarity for all stakeholders when this change takes effect, an interim planning policy is being developed. This policy will apply to HMOs outside of the Durham City Article 4 areas and will be used as a material consideration when assessing planning applications. It is intended to fill a gap in current policy ahead of the new County Durham Plan (CDP).

The draft interim policy, detailed in the Appendix 2 Interim HMO Policy, aims to ensure that HMOs contribute to mixed and balanced communities, protect neighbouring amenity, and provide a high standard of amenity for occupants. It proposes to prevent over-concentration by stipulating that HMOs should not result in three or more of the ten nearest properties being HMOs, nor should they lead to the 'sandwiching' of a residential property between two HMOs or an HMO and a non-dwelling property. Applications will also need to be accompanied by a management plan demonstrating acceptable impacts on neighbouring amenity, and will set detailed requirements for occupant amenity.

The National Planning Policy Framework (NPPF) underpins the policy, emphasising the need to deliver a sufficient supply of homes, including an appropriate mix of house types, and to create places that provide a high standard of amenity and do not undermine community cohesion. The report notes that while HMOs can offer affordable accommodation, an overconcentration can negatively impact residential amenity and the character of an area.

The interim policy is currently out for consultation, which runs from 25 March 2026 to 5 May 2026. All comments received will be considered, and the policy will be amended as required before being presented to Cabinet and then Full Council for adoption. The committee is asked to note the content of the report and provide their feedback on the draft interim policy.