Derby City Council has been swamped with planning applications for Houses in Multiple Occupation (HMOs) just days after introducing stricter controls across multiple areas of the city.

The surge follows the implementation of an Article 4 Direction on May 3, which now requires planning permission for HMOs of any size in designated areas.

We listened to residents’ concerns about the high level of HMOs in their communities and the challenges this can create.”

Councillor Shiraz Khan, Derby City Council cabinet member for housing, strategic planning and regulatory services, says: “We listened to residents’ concerns about the high level of HMOs in their communities and the challenges this can create. We’ve worked hard to bring the Article 4 direction to fruition to give us greater planning powers to regulate HMOs in the city.”

According to the council’s planning portal, 16 applications were submitted in the first week alone for properties on streets including Manchester Street, Crompton Street, London Road and Rose Hill Street.

Based on Derby City Council’s fee schedule, this initial wave of applications will bring in around £15,232 in upfront application fees, with the potential for an additional £7,072 in second-phase payments should these applications progress to draft licensing stage. That’s a total of over £22,000 for just one week’s worth of submissions.

Extra revenue

According to Derby City Council’s fee schedule, a new HMO licence for 1-6 rooms costs £1,394 and is valid for up to five years. The application process is split into two payments – £952 at the time of application and another £442 when the draft licence is issued.

The council has given no indication how long it will take to process all these new applications nor what percentage might be approved, leaving landlords in limbo as to whether their investments are still viable.

The move mirrors similar measures adopted by other local authorities across the UK, as councils seek both extra revenue and greater control over the distribution and quality of HMOs in their areas.

While campaigners have welcomed the rules changes, many property professionals have expressed concerns that increased costs and regulation could reduce housing supply and drive up rents in an already pressured market.