Merton Council is set to permanently tighten controls on shared housing, closing a planning loophole that has allowed small Houses in Multiple Occupation (HMO) to be created without full permission, including in affluent areas such as Wimbledon Village. The Labour-led council will make its Article 4 Direction permanent across 13 additional wards, meaning any future conversion of a family home into a small HMO will require full planning permission. This move puts Merton among a growing number of local authorities seeking to strengthen controls against controversial shared housing developments.
Expansion of Article 4 Direction
Article 4 directions allow local authorities to remove permitted development rights, requiring landlords to obtain full planning permission before converting a property into a small HMO. If approved at the next Cabinet meeting on July 13, Merton's expanded Article 4 Direction will cover Abbey, Cannon Hill, Hillside, Lower Morden, Merton Park, Ravensbury, Raynes Park, St Helier, Village, Wandle, West Barnes, Wimbledon Park, and Wimbledon Town and Dundonald wards. The council first introduced an Article 4 Direction in its seven eastern wards in November 2022. The 2026 expansion means the whole borough will now be covered by the tighter regulations.
Resident Concerns and Displacement
During a recent consultation on the expansion, Merton residents highlighted how the current partial coverage had led to pressure being displaced into the few areas still without restrictions, with developers focusing on those remaining uncontrolled pockets in the west. Council officers hope that extending the Article 4 Direction across all wards will remove that incentive and ensure a consistent approach to managing shared housing across Merton. HMOs provide a relatively affordable housing option, particularly in urban areas where demand remains high. However, concerns can arise when properties are poorly managed, including overcrowding, substandard living conditions, and safety issues.
During the consultation, one resident reported how emergency services were called after an HMO converted property was left unattended with a fan heater running for several days. "We had to call 999 and the fire brigade broke the door down," they recalled. Another anonymous resident described what they believed to be unauthorised building work linked to an HMO conversion and the disruption it caused. "They were breaking all the rules, and it was hell living through the constant noise," they said.
Impact on Neighborhood Character
Others said they believed the proliferation of HMOs was changing the character of previously family-oriented neighbourhoods. Speaking about their own neighbourhood, one resident said: "This is a family area, but what we are starting to see is lots of lovely family homes being occupied by single working men." Dame Siobhain McDonagh, Labour MP for Mitcham and Morden, also supported the tightening of controls, saying: "HMOs, in my extensive experience and that of my constituents, bring problems of antisocial behaviour, crime and environmental problems."
Accessibility and Landlord Concerns
The consultation also raised concerns around inclusivity, with a wheelchair user criticising the lack of attention given to accessibility standards in the wider HMO policy discussion, arguing that housing reform risks overlooking disabled residents. However, the proposals also prompted concern from landlords and property owners, who warned the changes could place further strain on an already stretched housing market. One investor with a £12 million portfolio said the cost of submitting planning applications would inevitably be passed on to tenants through higher rents. Smaller landlords echoed these concerns, arguing that tighter regulations risk driving out responsible providers and reducing the supply of lower-cost shared accommodation.
Regional Context
Neighbouring boroughs Croydon and Sutton have also introduced extensive Article 4 Directions, despite both facing acute housing shortages. Croydon Council introduced an Article 4 Direction in 2020 and has since emerged as one of the country's most restrictive authorities for HMO approvals. Last month, the Local Democracy Reporting Service revealed that the borough rejected nearly two-thirds of the 405 HMO applications it received between 2021 and 2025 — well above the national average.
