Part One: Spatial Strategy and Policies (Regulation 19)

8.51. In recent years, as house prices have risen in comparison with local wages, the demand for houses in multiple occupations (where facilities are shared by separate households) has increased across Dudley, and now requires a formal policy approach.

8.52. Houses in Multiple Occupation (HMO) are defined as homes accommodating three or more unrelated households who typically share kitchens, lounges, and bathrooms. Proposals for the conversion of an existing home to a HMO designed to accommodate three to six people do not normally require planning permission. From 15^th September 2023, Dudley has an Article 4 in place that removes Permitted Development Rights for the change of use of dwelling houses (C3 use) to small houses in multiple occupation (C4 use).             

8.53. HMOs are an increasingly popular part of the housing market within parts of Dudley. As rooms can be rented individually, they provide additional affordable accommodation options, used primarily by students, young people, and those on lower incomes.              

8.54. Whilst the area's stock of HMOs is contributing to meeting housing needs, increased numbers of multiple occupancy properties have the potential to create harmful impacts. Concentrations of HMOs within neighbourhoods can lead to imbalanced and unsustainable communities and harm the social mix and fabric of the area by increasing the proportion of short-term householders. They can damage the residential amenity and character of surrounding areas, as the level of activity associated with a HMO is significantly greater than a typical family house, thus increasing the potential for noise and disturbance.

8.55. Harmful impacts associated with high numbers of HMOs can include:

8.56. Whilst this type of accommodation can address certain housing needs, HMOs tends to be grouped together in part of the urban area, becoming the dominant type of housing, which can lead to social and environmental problems for local communities. Alongside this, an over-concentration of HMO properties can lead to a loss of family-sized units. This in turn can lead to a consequential increase in the overall number of units unsuited to family occupation. This can pose a serious issue for maintaining a mixed sustainable housing offer across Dudley.

8.57. The Dudley HMA (2024) signalled that there will continue to be a notable demand for homes of three bedrooms or more over the plan period. It is important, therefore, that an approach is taken to the creation of HMOs and the sub-division of existing properties that only allows those proposals that do not impact upon the overall supply of family-sized homes to be consented. In applying this policy, 'family-sized dwellings' means houses with three or more bedrooms.

8.58. Planning policy needs to balance the growing demand for HMOs with the need to avoid high concentrations which can cause a loss of amenity, increased social or environmental problems, and undermine health and stability of communities. Ease of access to work and education provision without needing a car also needs to be considered. New HMOs should be located in sustainable locations that allow ease of access to employment and residential services by means of sustainable transport, whilst reducing the need to use a private car. Proposals for new HMOs should look to address detailed local amenity issues, including local parking pressures and impacts on neighbours. Regard should be had to the Council's latest space standards for HMOs. Schemes should be well designed in line with Secured by Design principles (as per policy DLP39), and it is recommended that advice is sought from West Midlands Police Design Out Crime Officers.