HMOs can be a really interesting proposition for investors, helping them to maximise the yields from a property. However, it is important to understand the rules for creating and managing them. We want to take a closer look at one part of London here because the council has recently implemented restrictions. Then, if you want guaranteed rent in Sutton, you can speak to us.

Rules

Previously, property owners and landlords in Sutton could transform larger family homes into HMOs without having to get planning permission. They had this power because of a change to permitted development rights in 2015.

Last year, Sutton Council said they were planning to change the rules to be stricter on HMOs. There was a consultation from 22nd Feb to 21st March 2024. There was then a report to the council in November, detailing supportive responses from 13 residents and 4 resident associations.

Following the consultation, Sutton Council made the decision to introduce the HMO Article 4 Direction. They confirmed the plans on 26th November. The new rules came in on 22nd February 2025.

What are the new rules?

Investors should ensure they are aware of the new rules and what they require of them. It is crucial for anyone thinking about HMOs. Luckily, there is no retrospective element, so existing properties are fine. Let’s have a look, then you can ask us if you need guaranteed rent in Sutton.

The most crucial new rule is that property owners across the whole borough no longer have the freedom to change a family home into a HMO to let to up to six people. They must get planning permission for any new conversion. This means Sutton Council will have the power to determine applications and police the use of properties in the borough.

Another crucial detail is property owners will need to get planning permission to let HMOs to three or more people who are unrelated. This gives the Council even more power to ensure everything is above board.

Council comments

The Chair of Sutton Council’s Housing, Economy, and Business Committee, Cllr Jake Short, had comments about the new HMO rules. He said that HMOs are important for the area, but “developers must play by the same rules as others”. Having to get planning permission will ensure this. More importantly, it means the council will be able to ensure all new HMOs are “high quality and will not negatively impact the local area”.

Do you want to try guaranteed rent in Sutton?

Investors need to think very carefully about the assets they invest in, especially if it is homes they could turn into HMOs. They can be fantastic properties, but you must ensure you know the rules. Some even require licensing, including in various parts of Sutton.

We always recommend that clients consider all of the various options. This includes HMOs, working as a private landlord, and working with local councils. The latter can be really fantastic because it can guarantee you get rent consistently.

So, if you want to learn about HMOs, guaranteed rent in Sutton, or various other topics relating to investment properties, contact us. We’ve got a wealth of experience and support numerous clients.