If approved, the scheme would come into effect in spring 2026, extending licensing requirements to all HMOs with three or more unrelated tenants, a change from the current threshold of five or more.
Under the proposal, all HMOs, existing and new, would need a licence, with landlords footing the bill.
The fees would fund inspections and enforcement, giving the council power to check properties, issue fines, prosecute offenders, and even take over management of problem homes in serious cases.
The council has opened a public consultation on the plans. The proposal builds on the Article 4 Direction introduced in Sutton in February 2025, which removed permitted development rights for converting single-family homes into smaller HMOs without planning permission.
It is part of the council’s broader strategy to manage housing density and maintain “community balance”.
Sutton’s move follows similar enforcement efforts in neighbouring Croydon, where council officers inspected 21 suspected unauthorised HMOs in areas including Thornton Heath and Purley. Multiple breaches of planning and housing laws were found. Since 2021, Croydon has reduced its number of active enforcement cases by two-thirds, completing nearly 2,500 investigations.
Brent Council has also recently announced its intention to create a borough-wide HMO licensing scheme.
Across South London, a rise in HMO conversions has triggered concerns about overdevelopment and neighbourhood disruption. In South Croydon, a former GP surgery on Heathfield Road was converted into a 12–14‑bed HMO, raising issues around parking, waste, and noise.
A similar situation occurred in Carshalton, where the conversion of the former Carshalton Fields GP surgery into a six-bed HMO drew objections from over 180 residents concerned about antisocial behaviour and the loss of a valued community asset. Both projects were ultimately approved.
Councillor Jake Short, Chair of Sutton’s Housing, Economy & Business Committee, said: “Ensuring our residents have access to quality and affordable housing in Sutton is one of the council’s top priorities.
“Introducing a licensing scheme for all HMOs would make a real difference to those tenants. It will also protect the borough’s existing family‑sized accommodation from being converted into smaller flats, as well as reducing antisocial behaviour, environmental crimes and parking pressures.
“We now want residents to give their views on these new proposals in our consultation on HMOs and help Sutton to get tough on rogue landlords. Working together, through this consultation and in the months after, we will do all we can to secure a fairer deal for Sutton’s renters.”
The consultation is open until September 8. The council will use feedback to shape the final scheme, with a full rollout planned for spring 2026.