EXECUTIVE 25 JANUARY 2016

SUBJECT:

HOUSES IN MULTIPLE OCCUPATION ARTICLE 4 DIRECTION AND SUPPLEMENTARY PLANNING DOCUMENT

DIRECTORATE:

DIRECTOR OF DEVELOPMENT & ENVIRONMENTAL SERVICES

REPORT AUTHOR:

KIERON MANNING, PLANNING MANAGER

1. Purpose of Report

1.1 To summarise the results of the consultation undertaken on the draft Houses in

Multiple Occupation Supplementary Planning Document (HMO SPD), and seek approval to publish a statement of the results.

1.2 To provide an update on evidence gathering activities to identify the number and location of HMOs within the city, including properties identified through the HMO declaration process.

1.3 To assist the Executive in deciding whether to confirm the Article 4 direction relating to HMOs, and bring it into effect on 1st March 2016.

2. Executive Summary

2.1 At the meeting of Executive on 15th December 2014, approval was given for the making of a non-immediate direction under Article 4 of the Town and County Planning (General Permitted Development) Order 1995 (as amended) to remove permitted development rights relating to houses in multiple occupation. This report outlines the results of the public consultation exercises that followed, which must be taken into account in determining whether to recommend confirmation of the Article 4 direction, and bring it into effect on 1st March 2016.

2.2 Consultation on the Article 4 direction relating to houses in multiple occupation took place between 27th February and 20th March 2015. Of the 268 representations received, 133 were in favour of the Article 4 direction while 130 were against the Article 4 direction. Those who were in favour of the Article 4 direction were all residents, including two elected members of the council. Over 90% of those who were against the direction were also residents, while the remainder were landlords, letting agents, and the city’s universities. The detailed responses received from the Article 4 direction consultation have been reviewed in formulating this report, and an update on the council’s position in relation to the issues raised has been provided (Section 4.15).

2.3 Consultation on the draft Houses in Multiple Occupation Supplementary Planning Document (HMO SPD) took place between 14th September and 16th October 2015. A consultation statement has been produced outlining the consultation, representations and comments received and officer responses to the main issues raised (Appendix 4).

2.4 Evidence gathered to date includes over 500 submissions declaring existing HMOs within the city. The HMO declaration process will remain open to enable HMOs that would not otherwise be made known to the council to be identified.

3. Background

3.1 In August 2014, Full Council considered a petition from residents of Carholme ward, which called on the authority to take action to limit the growth of HMOs. Subsequently, the council undertook a city-wide consultation exercise to seek the views of residents, elected members and interested parties on the issues raised by the growth of HMOs. The outcome of that consultation, along with detailed business cases on the options available to the council for managing HMOs, were considered by the council’s Executive on 15th December 2014. That was when the decision was made to pursue the consideration of an Article 4 direction to remove permitted development rights relating the houses in multiple occupation, and the development of a local authority-led accreditation scheme.

3.2 Following this decision, an internal HMO Project Group was established to oversee the two strands of the project, and detailed project plans were formulated to ensure progress against key milestones could be monitored. The key milestones for the Article 4 direction and associated Supplementary Planning Document are outlined in Sections 4.11 and 5.11 of this report.

3.3 The Executive decision to pursue a non-immediate Article 4 direction enabled the council to give a minimum period of 12 months prior notice of the withdrawal of permitted development rights relating to houses in multiple occupation, thereby reducing the potential liability to pay an unquantifiable level of compensation to those affected.

3.4 Two public consultation exercises were subsequently completed; one specifically relating to the Article 4 direction and the other on the criteria that would be used to determine planning applications for the development of HMOs within the city, subject to the Article 4 direction being brought into effect. The following sections outline the purpose, scope and results of the consultation exercises, for consideration in deciding whether to confirm the Article 4 direction, and bring it into effect on 1st March 2016.

3.5 Policy Scrutiny Committee is due to consider this report at their meeting on 20th January 2016. The minutes of their meeting will be taken into account in deciding whether to confirm the Article 4 direction, and bring it into effect on 1st March 2016.

4. Article 4 direction process and consultation results

4.1 Further to the Executive decision of 15th December 2014, to pursue the consideration of an Article 4 direction relating to houses in multiple occupation for the council’s administrative area and the development of a local authority-led accreditation scheme, an Article 4 direction was made.

4.2 The direction relates to development comprising the change of use from a use falling within Class C3 (dwellinghouses) of the Town and Country Planning (Use Classes) Order 1997, as amended; to a use falling within Class C4 (houses in

multiple occupation) of that Order, and removes permitted development rights for this type of development.

4.3 In accordance with the relevant legislation, the city council allowed a period of time for representations concerning the direction to be made by any individuals, groups or organisations with an interest.

4.4 A copy of the direction, including a map defining the area covered, was made available to view at City Hall and on the Council’s website at www.lincoln.gov.uk/Article4 (Appendix 1).

4.5 Representations and comments were invited between 27th February and 20th March 2015. To advertise the consultation, approximately 60 site notices were put up across the city on 11th February 2015, and a public notice was included in the Lincolnshire Echo on 26th February 2015.

4.6 The city council also notified the Secretary of State, Lincolnshire County Council, and those who took part in the previous consultation exercise in respect of the options available to the city council for the future management and control of houses in multiple occupation, which took place between 26th September and 24th October 2014.

4.7 During the consultation period, the city council received a total of 268 representations from 197 addresses (not all representations included address details). The majority of responses were received from residents of Carholme ward, despite the consultation being city-wide (see Figure 1). Whilst it may seem reasonable to limit an Article 4 direction to those areas currently most affected by HMOs (e.g. Carholme ward), the direction cannot be applied retrospectively, and drawing a boundary around certain ward(s) could put pressure on areas just outside of the designated area, and displace the issues to other parts of the city.

Figure 1 Distribution of Article 4 direction responses

4.8 Of the 268 representations received, 133 were in favour of the Article 4 direction

while 130 were against the Article 4 direction (some representations were observations, and representations from the same person but submitted in different formats were counted as one). Table 1 provides a breakdown of who were for and against the Article 4 direction.

Support Object

Resident 133 119

Letting agent - 7

Residential landlords association

- 1

Bishop Grosseteste University

- 1

University of Lincoln - 2

Total 133 130 Table 1 Article 4 direction responses

4.9 A statement outlining the consultation, representations and comments received and officer responses to the main issues raised was published following Executive approval on 15th June 2015. A copy of the draft ‘Houses in Multiple Occupation Article 4 direction Consultation Statement’ is provided at Appendix 2.

4.10 Officers considered that, due to the responses received from the Article 4 direction consultation, there was no indication for a material change in direction; therefore, on 15th June 2015, Executive gave authority to continue to the next steps as identified below.

4.11 The key milestones for the Article 4 direction, including a revised date for the decision whether to confirm the direction, are outlined below:

Article 4 direction

Key Milestone Date

Decision from Executive /Article 4 direction made

15th December 2014

Serve notice locally and notify the Secretary of State

27th February to 20th March 2015

Evidence gathering

Ongoing

Preparation of Supplementary Planning Document

to December 2015

Decision whether to confirm the direction

December 2015 January 2016

Direction would come into force subject to decision

1st March 2016

Serve notice locally and notify the Secretary of February to March 2016

State

Annual monitoring and review

From 31st March 2016

4.12 The representations received during the Article 4 direction consultation period

must be considered further, and taken into account in deciding whether to confirm the Article 4 direction, and bring it into effect on 1st March 2016. Whilst the aforementioned ‘Houses in Multiple Occupation Article 4 direction Consultation Statement’ included a summary of the main issues raised, it is considered necessary to review the issues raised by those both for and against the Article 4 direction, and provide an update on the council’s position in relation to the issues.

4.13 The main reasons given by those who support the Article 4 direction were:

The over saturation of Houses in Multiple Occupation within the areas of the city, particularly the Carholme Ward have led to the deterioration of the community and left unchallenged will be irreversible.

The reasons given by the City Council Executive for the pursuance of an Article 4 direction at its meeting on the 16th December [sic] have not changed and in fact have become more serious.

The current controls within planning legislation are ineffective and do not allow the council to control the spread and concentration of HMOs in the Carholme Ward and in the city.

The over-concentration of HMOs in the Carholme Ward and other wards within the city have led to a serious deterioration in the quality of the life of the permanent residents of those wards.

The continued conversion of family homes paying council tax to HMOs with student exemptions is having a serious problem for the funding of the city council and the burden of this will fall on the permanent residents.

4.14 The main reasons given by those who were against the Article 4 direction were:

Article 4 will cause the value of my property to decrease significantly

Article 4 will cause rents to rise for all people living in student houses or HMOs

4.15 In addition to the standardised responses both for and against the Article 4

direction, detailed responses cited the following issues which have been considered further since the ‘Houses in Multiple Occupation Article 4 direction Consultation Statement’ was published: Impact on character and appearance Sample street surveys suggest houses in multiple occupation can have an adverse impact on the character and appearance of an area, especially if properties are poorly managed/maintained. Equally, some high quality conversions can bring back into use empty properties which may otherwise fall into disrepair. The Article 4 direction would enable the council to consider the potential impact of an HMO development on the character and appearance of an area.

Anti-social behaviour Graphs showing the nature and distribution of complaints received by the council’s Public Protection and Anti-Social Behaviour service were included in the draft HMO SPD, which was published for public consultation between 14th September and 16th October 2015. However, it is important to note that not all incidents are reported, nor are all complaints linked to a specific property or address. Therefore, whilst there may be higher numbers of complaints in areas with high concentrations of HMOs, it is not possible to establish a direct link between the distribution of complaints and the distribution of HMOs within the city, nor state that certain issues are caused by occupants of HMOs. Notwithstanding this, several responses received from both the Article 4 direction and draft HMO SPD consultations cited anti-social behaviour as an issue. The draft HMO SPD acknowledges that increasing numbers of HMOs can cause notable physical and social changes to an area. The Article 4 direction and SPD would enable the council to manage the development of HMOs, and take into account the impact of an HMO development on residential amenity. Housing market Several consultation responses cited concerns about the potential impact of an Article 4 direction on property values, and the cost and availability of private rented accommodation. Information gathered as part of the Central Lincolnshire Strategic Housing Market Assessment (SHMA, 2015) informed the making of the Article 4 direction, and formulation of the draft HMO SPD. The SHMA predicts a likely increase in demand for HMOs based on student population projections alone, however, the purpose of the Article 4 direction and SPD is not to restrict the supply of HMOs, rather they are intended to manage the future development of HMOs to ensure such developments will not lead to or increase existing over-concentrations of HMOs which are considered harmful to local communities. Other local planning authorities who have implemented Article 4 directions for the purposes of HMOs have reported changes in property values since bringing their Article 4 directions into effect. However, it is important to note that, whilst the issue has been cited as a potential implication in previous reports, it is not a material planning consideration. Officers, therefore, consider that the comments made in relation to the potential impact on the local housing market do not indicate for a material change in direction to pursue an Article 4 direction relating to HMOs. The potential impact on property values should, therefore, not be given any weight in deciding whether to confirm the direction. Community balance A high concentration or percentage of HMOs can lead to an imbalance in the community. There is no widely accepted numerical model to indicate if balance or imbalance exits, therefore assessments of balance or imbalance must rely, to some extent, on the presence of symptoms of imbalance and comparison with other communities and housing markets. In 2003, as part of a study on student housing within the city, Fordham Research Ltd. identified the symptoms of imbalance as:

High levels or absence of any specific tenure

High levels of turnover of housing vacancies

Abnormally high or low house prices and rents

A population that is highly fixed or transient

A local economy that is largely dependent upon a large group of people

Falling school rolls or changes in the nature of the school roll

The perception of local people that their neighbourhood is changing in such a way as to threaten their quality of life.

Further evidence has been gathered in relation to the above indicators of imbalance, and is presented at Appendix 3. The data, together with detailed consultation responses, suggests there is some correlation between increasing numbers of HMOs and the above symptoms of imbalance within parts of the city. Impact on local services and facilities Several consultation responses cited changes in the provision of services and facilities in response to increasing numbers of HMOs and associated population groups e.g. students. Whilst there may have been notable changes in the provision of services and facilities in areas with existing high concentrations of HMOs, there is no meaningful way of gathering evidence to demonstrate a direct causation between the two, as it would involve making assumptions about certain population groups and whether they live in HMOs. Whilst the Article 4 direction and SPD would enable the council to manage the development of HMOs, and take into account certain issues in deciding whether to grant planning permission for an HMO development; any impact on the provision of services and facilities thereafter would be secondary, as well as difficult to predict, and moreover likely to be influenced by local demand. Officers, therefore, consider this issue should be given limited weight in deciding whether to confirm the Article 4 direction. Universities’ plans for growth/expansion The Central Lincolnshire Strategic Housing Market Assessment (SHMA, 2015) considers the future accommodation needs of students, taking into account the future development plans of the University of Lincoln, Bishop Grosseteste University and Lincoln College. The SHMA acknowledges that HMOs play a critical role in meeting and balancing any shortfall between the supply and demand for student accommodation. However, the delivery of purpose-built accommodation – of high quality, in attractive locations and at reasonable costs – can be a more attractive option for students, and this can subsequently reduce demand for HMOs if delivered. Cost and location is, however, an important factor, with HMOs in accessible, established student communities likely to remain popular irrespective of additional supply. By managing the future development of HMOs, the Article 4 direction and SPD would help ensure communities across the city remain balanced, and attractive to a wide range of people. In response to the draft HMO SPD consultation, the University of Lincoln suggested setting up a working group with the council to regularly review the requirement for student housing within the city.

5. Supplementary planning document and consultation results

5.1 Following the Article 4 direction consultation, a draft HMO SPD was formulated, outlining the criteria that would be used to determine planning applications for the development of HMOs within the city.

5.2 On 24th August 2015, Executive considered and approved the draft HMO SPD for public consultation and, in accordance with the relevant legislation, the city council allowed a period of time for representations concerning the draft SPD to

be made by any individuals, groups or organisations with an interest. Representations and comments were, therefore, invited between 14th September and 16th October 2015.

5.3 During the consultation period, a copy of the draft HMO SPD was available to view at City Hall, and download from the Council’s website at www.lincoln.gov.uk/hmo.

5.4 To advertise the consultation, notices were included in the Lincolnshire Echo on 17th September and 8th October 2015. The city council also notified those who took part in the previous consultation exercises relating to HMOs and/or the Article 4 direction, which took place between 26th September and 24th October 2014 and 27th February and 20th March 2015 respectively.

5.5 Individuals, groups and organisations were invited to complete an online questionnaire at www.lincoln.gov.uk/hmospd. Paper copies of the questionnaire were available at City Hall, and to download from the Council’s website. Representations were also accepted by email at hmo@lincoln.gov.uk.

5.6 During the consultation period, the city council received a total of 61 representations from approximately 56 addresses (not all representations included address details). Of the 61 representations received, 57 completed the online questionnaire while 4 submitted email responses.

5.7 In accordance with the relevant legislation, a consultation statement has been prepared including the following information:

1. Background 2. Key milestones 3. Consultation summary 4. Consultation results 5. Next steps 6. Who was consulted 7. Representations and comments received

Copies of notices and letters that formed part of the consultation process are appended to the statement. A copy of the draft ‘Houses in Multiple Occupation Supplementary Planning Document Consultation Statement’ is provided at Appendix 4.

5.8 Section 4 ‘Consultation results’ includes a detailed summary of the main issues raised by those individuals, groups and organisations both in support of and against the Article 4 direction and draft HMO SPD, and officers responses to the matters raised. The matters raised during the consultation have been taken into account in preparing a final draft HMO SPD, a copy of which is included at Appendix 5.

5.9 The main changes that were made to the draft HMO SPD in response to the comments received were as follows:

- New Section 2.2 – Purpose of A4D and SPD - Old Section 5 ‘Evidence’ removed – included for context only, text on

identifying HMOs included in new Section 5 ‘Assessment criteria’ - New Section 5 ‘Assessment criteria’ - New Section 5.4 – Impact on character and appearance - New Sections 5.14-5.17 ‘Defining the community’ – 100m radius, and text

on identifying properties - New Sections 5.18-5.19 ‘Defining a maximum concentration’ – 10%

threshold, and text on identifying HMOs - New Sections 5.20-5.22 ‘Avoiding smaller concentrations of HMOs’ – no

more than 3 adjacent HMOs unless the application property is located between 2 existing HMOs, including illustrations

- New Section 6 ‘Implementation’ - New Section 6.3 ‘Planning application requirements’ - New Section 6.4 ‘Planning application consultations’ - Old Section 7.3 removed – text on identifying HMOs included in new

Section 5 - Old Section 7.4 ‘Planning conditions’ removed- discussed removing

permitted development rights relating to HMOs in the absence of an Article 4 direction

5.10 The draft HMO SPD consultation specifically related to the issues that would be

considered as part of a planning application process, and the proposed methods for assessing the potential impacts of HMOs. The representations received during the draft HMO SPD consultation period must be considered in relation to the potential implementation of the Article 4 direction, should the decision be made to confirm the direction, and bring it into effect on 1st March 2016.

5.11 The key milestones for the Supplementary Planning Document are outlined below:

Supplementary Planning Document

Key Milestone Date

Decision from Executive

15th December 2014

Evidence gathering

Ongoing

Consideration of evidence and preparation of draft SPD

May to August 2015

Consultation on draft SPD

14th September and 16th October 2015

Consideration of representations and preparation of the final draft SPD

October to December 2015

Adoption subject to decision* *SPD remains ‘Draft’ until Central Lincolnshire Local Plan adopted (earliest November 2016)

Draft 1st March 2016 Final November 2016 (subject to change)

Annual monitoring and review

From 31st March 2016

5.12 Strategic Environmental Assessment Screening In accordance with the relevant legislation, the city council has prepared a Strategic Environmental Assessment Screening Report, which includes an assessment of the draft HMO SPD against the criteria contained within the Environmental Assessment of Plans and Programmes Regulations 2004 (Appendix 6). The Statutory SEA Consultation Bodies (Natural England, Historic England, Environment Agency) have been asked consider the assessment, provide comments and confirm whether they agree with the council’s view that the draft HMO SPD does not require a SEA by 8th January 2016.

5.13 Scrutiny Process This report is scheduled to be considered by the Policy Scrutiny Committee on 20 January 2016; minutes from that meeting will be provided for the Executive’s attention at its meeting on 25 January 2016.

6. Evidence gathering

6.1 Previous reports have highlighted the importance of gathering robust evidence to justify the purpose and extent of the Article 4 direction. A key role of the HMO Project Group has been to oversee the development of a coordinated approach to identifying HMOs; collating information relating to their use; assessing impacts associated with their development; and monitoring their development within the city.

6.2 In response to concerns that many HMOs would not be identified through existing measures, including HMO licensing and council tax exemptions, the decision was made to launch the HMO declaration process, to encourage landlords and property owners to declare existing HMOs. However, it is important to emphasise that this may not provide a complete and accurate record of all HMOs within the city, as some properties may never be formally identified or made known through the HMO declaration process.

6.3 HMO Declaration Following the Article 4 direction consultation, the council launched the HMO declaration process, asking landlords and property owners to declare existing HMOs to improve the city council’s knowledge of such properties in the city.

6.4 Those who own or operate one or more HMOs within the council’s administrative area, are being asked to complete an HMO declaration form with relevant details of their properties.

6.5 If the Article 4 direction relating to houses in multiple occupation is confirmed, it will mean planning permission will be required for a change of use from a dwellinghouse (Use Class C3) to a house in multiple occupation (Use Class C4) from 1st March 2016. However, this requirement will not be applied retrospectively, so for those who currently own or operate HMOs it may be beneficial for them to complete the declaration form before a decision is made regarding whether to confirm the direction.

6.6 In order for a property to be classed as an HMO before 1st March 2016, it must have already been in occupation as an HMO before this date. Just having completed any conversion works, or registering the property for its intended use,

will not be sufficient to state that a change of use has occurred.

6.7 Since 1st May 2015, the council has received over 500 declarations, although some properties have been declared more than once and by different people. The council will be writing to the landlords/owners of these properties to ensure the correct details are recorded, and properties are not counted more than once.

6.8 The HMO declaration process will remain open to enable HMOs that would not otherwise be made known to the council to be identified.

6.9 Planning applications Since the decision to pursue the consideration of an Article 4 direction relating to HMOs, the council has been monitoring the number of planning applications received for HMO developments. Table 2 shows there has been an increase in the number of planning applications for HMO developments compared to the previous two years.

Valid 15/12/12 – 14/12/13

Valid 15/12/13 – 14/12/14

Valid 15/12/14 – 14/12/15

Granted 3 4 3

Refused 0 0 2

Withdrawn 0 0 2

Awaiting decision

0 0 4

Table 2 Planning applications for HMO developments 15 Dec 2012 - 14 Dec 2015

A small number of the applications received between 15th December 2014 and 14th December 2015 were for retrospective planning permission for large HMOs.

7. Implementation – resources update

7.1 On 15th December 2014, Executive approved a budget for the continuation of the Article 4 direction which included £74,190 for 2015/16. This cost projection was formulated on the basis of the capacity of Development Management to accommodate the additional work as a team at that time, and was in advance of the Post Implementation Review of the Planning and Regeneration restructure. The outcome of this review has subsequently resulted in additional resource within the team to enable the required level of performance generally. It has, therefore, been possible, to date, to employ a more modest approach in terms of the additional resource required. Consequently, the amount of the allocated budget used for the whole of 2015/16 is £24,070, which is a saving of £50,120 (Table 3).

2015/16

£

Planning Enforcement Officer (Career Grade S6 - PO1A) 30,430

Assistant Planning Officer (Career Grade S2 - S5) 19,430

Planning Officer 24,330

Contingency 74,190

Contingency used :

Assistant Planning Officer (Career Grade S2 - S5) 11,350

Assistant Planning Officer (Career Grade S2 - S5) 12,160

2 x Assistant Planning Officer acting up to Planning Officer (S6) 560

24,070

Unused Contingency 2015/16 50,120 Table 3 2015/16 Finances for Article 4 direction

7.2 As outlined in Section 7.1, officers consider that the revised level of resource is

likely to be adequate for implementation of the Article 4 direction, and would represent a saving of £263,820 over the approved contingency in the Medium Term Financial Strategy (MTFS) (Table 4).

2015-16 2016-17 2017-18 2018-19 2019-20 Total

Approved contingency budget 74,190 85,610 96,970 109,280 114,930 480,980

Revised contingency required 24,070 44,220 48,280 49,760 50,830 217,160

Under spend (50,120) (41,390) (48,680) (59,520) (64,100) (263,820) Table 4 Approved and revised MTFS projections

7.3 Clearly, the resource required to date has been in advance of implementation of

the Article 4 direction and has, therefore, been largely based on the research, consultation and policy formulation strands of work. Should the Council decide to formally implement the direction, this type of work will be largely replaced with the operational duties of dealing with the planning applications, as well as enquiries and enforcement complaints.

7.4 There are a number of potential changes to the planning system over the next 12 months, as well as changes to stamp duty regulations and the categorisation of affordable homes, in addition to potential efficiencies to be made with a new Planning Information System. It is, therefore, recommended that in order to ensure it is still sufficient, this level of resource is reviewed as part of a Post Implementation Review of the HMO project, which would be scheduled for March 2017, if the decision is made to bring the Article 4 direction into effect on 1st March 2016.

8. Conclusion

8.1 Whilst the responses received from the Article 4 direction consultation were finely balanced numerically, further detailed analysis of the responses shows the comments made by those for the Article 4 direction were aligned with material planning considerations, such as impact of such properties on residential and visual amenity and the character and appearance of an area; while those against the Article 4 direction were typically concerned about impacts on individuals, such as changes to the value of their property, or the amount of rent they pay, which are not considered to be material planning considerations. This amounts to a significant factor for officers to recommend an Article 4 direction be confirmed.

In deciding to pursue the consideration of an Article 4 direction, Executive noted the potential benefits of such a direction in giving the council additional scope to shape the development of the city in keeping with both the needs of individual areas and Lincoln overall. In view of the evidence presented at Policy Scrutiny Committee on 12th November 2014, it was considered that the direction, and accreditation scheme, would ensure an appropriate balance between the needs of both HMO and non-HMO residents, as well as benefitting the city as a whole. A city-wide Article 4 direction would ensure future HMO developments would not lead to or increase existing over-concentrations of HMOs in certain parts of the city, whilst ensuring that the development of such properties in other parts of the city is managed, so as not to cause displacement of the issues associated with existing over-concentrations of HMOs. Officers, therefore, consider that, due to the responses received from the Article 4 direction, and the additional information on the main issues raised as outlined in this report, there is no indication for a material change in direction and, as such, recommend that the Article 4 direction is confirmed and brought into effect on 1st March 2016.

9. Strategic Priorities

9.1 The Article 4 direction and associated Supplementary Planning Document form part of a wider corporate project relating to houses in multiple occupation, which is considered a corporate priority.

10. Organisational Impacts

10.1 Finance It is recommended that the underspent element of the contingency budget of £263,820 is released back into the 2015-2020 MTFS. Further work is currently being undertaken on the proposed Accreditation Scheme for Private Rented Housing and there is potential for this underspend to be re-directed to fund this project.

10.2 Legal Implications As outlined in the report.

10.3 Equality, Diversity and Human Rights Consideration has been given to the impact on equality, diversity and human rights and the Equality Impact Assessment toolkit has been reviewed. It is concluded that there are no direct impacts to be assessed, however, should any arise, these will be addressed.

11. Risk Implications

11.1 A risk assessment has been produced for the Article 4 direction and associated Supplementary Planning Document (Appendix 7) A further risk assessment has been produced outlining the potential risks associated with implementing the Article 4 direction (Appendix 8).

12 Recommendations

12.1 1. That Executive approves the ‘Draft Houses in Multiple Occupation Supplementary Planning Document Consultation Statement’ for publication.

2. That Executive further considers the representations received in response

to the consultation for the Article 4 direction relating to HMOs, and the additional information on the main issues raised as outlined in this report, and take them into account in deciding whether to confirm the direction.

3. That Executive approves the confirmation of the Article 4 direction to remove permitted development rights for development comprising the change of use from a use falling within Class C3 (dwellinghouses) of the Town and Country Planning (Use Classes) Order 1997, as amended; to a use falling within Class C4 (houses in multiple occupation) of that Order, with effect from 1st March 2016.

4. That Executive instructs officers to continue to work to the timescales outlined in the detailed project plan for the Article 4 direction and associated Supplementary Planning Document.

5. That Executive approves the ‘Draft Houses in Multiple Occupation Supplementary Planning Document’ for publication and use as a material consideration in deciding planning applications for HMO developments.

6. That Executive instructs officers to carry out a Post Implementation Review (PIR) of the Article 4 direction and associated Supplementary Planning Document from 1st March 2017, and report the PIR findings to Policy Scrutiny Committee and Executive in due course.

Is this a key decision?

Yes

Do the exempt information categories apply?

No

Does Rule 15 of the Scrutiny Procedure Rules (call-in and urgency) apply?

No

How many appendices does the report contain?

8

List of Background Papers:

None

Lead Officer: Planning Manager Telephone (01522) 873551

Appendix 1 – Article 4 direction