Decision Maker: Cabinet
Decision status: For Determination
Is Key decision?: No
Is subject to call in?: No
STOCKTON-ON-TEES BOROUGH COUNCIL
CABINET/COUNCIL DECISION
PROFORMA
Cabinet Meeting ........................................................................ 15 January 2026
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Title of Item/Report
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Article 4 Direction Small Houses of Multiple Occupation Use class C4
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Record of the Decision
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Consideration was given to a report on Article 4 Direction Small Houses of Multiple Occupation Use class C4.
In view of growing demands for small HMOs, implications on the boroughs housing stock and communities, there was a need to consider the introduction of measures to restrict the use of permitted development rights for change of use from dwelling houses (Class C3) to small HMOs (Class C4).
In view of all the associated considerations, it was therefore recommended that the introduction of a borough wide, non-immediate Article 4 direction to remove permitted development rights that allow of the change from a residential dwelling (use class C3) to small House of Multiple Occupation (Use class C4) to pursued, along with associated guidance in line with the recommendations set out below.
In recent years Officers had seen an increasing number of concerns being raised by neighbouring residents and Elected Members on a Borough-wide basis about the presence of HMOs across the Borough.
Particular focus had been given to HMOs providing poor-quality housing which was not managed effectively. Consequently it was seen as attracting persons experiencing social and/or economic instability and those living a more transient lifestyle. Complaints also often included reference to crime and anti-social behaviour.
The Housing Act (2004) defines a ‘House in Multiple Occupation’ (HMO) as living accommodation occupied by persons who do not form a single household and share one or more basic amenities.
The Planning system currently categorises HMOs as either; • Use class C4 for between three and six persons with basic shared facilities. • Sui Generis classification (meaning a ‘class of its own’) for seven or more residents.
The General Permitted Development Order (GPDO) allowed certain forms of development to take place without the need for planning permission, which was known as ‘permitted development’.
Residential dwellings (Use class C3) had permitted development rights to change use to small Houses in Multiple Occupation (Use Class C4). Where a change to Sui Generis classification, automatically required planning permission.
For clarity, the introduction of an Article 4 direction would affect only those elements which currently do not require planning permission, i.e. class HMOs falling in use class C4 and mean that planning permission would be required as they are for larger HMO’s.
Whilst there was a clearer case for a smaller geographical area to restrict small HMOs, given the current circumstances and matters considered within the report, it was considered that there was sufficient merit in introducing a Borough wide Article 4 direction to remove permitted development rights for the conversion of dwelling houses to small HMOs in order to protect the amenity and cohesion of our communities.
In recognising that HMOs do play an important role in providing a source of affordable housing, particularly those in acute housing need, the aspiration of future planning policies and associated guidance should therefore look to ensure that small HMOs were of the right quality, the right need and in the right area, to ensure our Borough maintains balanced, inclusive and cohesive communities.
The introduction a non-immediate Article 4 direction allowed for time to manage any associated risks arising from legal challenge and compensation. Crucially it would also enable the development of an interim policy/SPD, ensuring decisions on HMO applications were based on a robust framework and giving the greatest chance of success in defending any associated appeals.
In view of all the associated considerations, it was therefore recommended that the introduction of a borough wide, non-immediate Article 4 direction to remove permitted development rights for small HMOs be introduced along with interim policy/SPD, in line with the recommendations contained within the report.
RESOLVED that:-
1. The Local Planning Authority is satisfied that it is expedient to make the article 4 Direction and the Director of Regeneration and Inclusive Growth be authorised to make a Borough wide, non-immediate Article 4 direction to remove permitted development rights allowing conversion from a dwelling to small HMO.
2. The Director of Regeneration and Inclusive Growth be authorised to undertake all necessary notifications and consultation in association with Schedule 3 of the General Permitted Development Order, 2015.
3. The Director of Regeneration and Inclusive Growth be authorised to consider all representations made during the consultation period and, subject to remaining satisfied that it remains expedient to make the Direction after considering the representations, to confirm the Article 4 Direction and take all necessary action following the confirmation
Recommended to Council that:-
4. Delegated authority be given to the Director of Regeneration and Inclusive Growth, in consultation with the Cabinet Member and the Planning Committee to produce a draft interim policy or Supplementary Planning Document (SPD) to inform the determination of future applications for HMOs
5. Delegated authority be given to the Director of Regeneration and Inclusive Growth to undertake all necessary consultation in association with recommendation 4 above.
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Reasons for the Decision
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There is a need to consider the introduction of measures to restrict the use of permitted development rights for change of use from dwelling houses (Class C3) to small HMOs (Class C4).
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Alternative Options Considered and Rejected
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None
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Declared (Cabinet Member) Conflicts of Interest
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None
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Details of any Dispensations
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None
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Date and Time by which Call In must be executed
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Midnight, 23 January 2026 for recommendations 1,2 and 3 only.
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Proper Officer
Report author: Chris Renahan
Publication date: 15/01/2026
Date of decision: 15/01/2026
Decided at meeting: 15/01/2026 - Cabinet
Accompanying Documents: