New HMO Planning Controls and Licensing Proposals in Telford & Wrekin: What Landlords Must Do Now

Understanding the New HMO Planning Controls

Telford & Wrekin Council is set to impose stricter planning controls on Houses in Multiple Occupation (HMOs). From 27 February 2027, an Article 4 Direction will come into force, meaning that all new small HMOs (those with fewer than five occupants) will require planning permission. This change removes their previous permitted development rights, which allowed landlords to convert properties into small HMOs without formal planning approval.

In parallel, the council is consulting on extending the scope of mandatory HMO licensing to cover all HMOs, not just those with five or more occupants. This consultation closes on 11 March 2026, with outcomes expected later in the year.

Why This Matters to Landlords

For landlords operating in Telford & Wrekin, these developments represent a significant shift in compliance requirements:

• Planning permission is no longer automatic for small HMOs: From February 2027, even converting a property into a small HMO will need prior approval.

• Potential expansion of HMO licensing: If the council adopts the new licensing scheme, all HMOs—whether small or large—will require a licence, increasing administrative and financial burdens.

• Financial implications: Planning applications involve fees (which vary but typically start around £200–£400 for changes of use) and can cause delays in letting properties. Licensing fees, if extended, will add recurring costs.

• Compliance risks: Operating without the required planning permission or licence could lead to enforcement action, fines, or even closure of the property.

Practical Implications by Landlord Profile

• Single-unit landlords: Need to check if their property is a small HMO and ensure any new conversions after 27 Feb 2027 have planning permission. They should monitor the licensing consultation and prepare for new licensing requirements.

• HMO portfolio landlords: Must audit all existing HMOs, noting which fall under current licensing and which may require licences if the scheme expands. Planning permissions for any new HMOs must be secured.

• Accidental landlords: Those who rent out HMOs without fully realising the classification should seek professional advice to understand their obligations and avoid unintentional breaches.

• Letting agents: Should advise landlords on upcoming changes, help with planning applications, and prepare for increased administrative tasks related to licensing.

Recommended Next Steps

1. Audit your HMOs now: Identify which properties are classified as HMOs, their occupant numbers, and current planning and licensing status.

2. Plan ahead for planning permission applications: If you intend to create new small HMOs in Telford & Wrekin after February 2027, start gathering necessary documentation and budget for application fees and potential delays.

3. Engage with the consultation: If you are affected or have views, submit your feedback by the 11 March 2026 deadline. This is an opportunity to influence the licensing scheme’s scope or fees.

4. Monitor council updates: Regularly check Telford & Wrekin Council’s website and official communications for announcements about the licensing scheme’s final details and application procedures.

5. Seek professional advice: Consult planning consultants, HMO compliance specialists, or legal advisers to understand the full impact on your portfolio and to ensure ongoing compliance.

Benchmarking and Uncertainties

While the council has announced the Article 4 Direction and licensing consultation, specific details such as licensing fees and exact application procedures remain pending. Landlords should benchmark fees and processes against similar local authorities that have implemented full HMO licensing, such as Birmingham or Nottingham, where licences typically cost between £500 and £1,000 for five years.

How Rentals & Sales Can Support You

Our team offers tailored portfolio reviews to identify compliance gaps and opportunities. We provide compliance audits focusing on planning and licensing risks and can assist with pricing strategies that reflect new costs and market conditions. With over 15 years’ experience in landlord operations and regulatory changes, we help landlords navigate these transitions pragmatically and proactively.

Compliance Disclaimer

This article provides a general overview and does not constitute legal advice. Landlords should seek professional advice tailored to their specific circumstances to ensure full compliance with planning and licensing requirements in Telford & Wrekin.