UK Resort Towns HMOs and Guesthouses Steve Matthews Blackpool Council

The Challenge Shift in demand for traditional British seaside holidays Many resort towns had large supplies of guesthouses that are no longer viable Properties are large and whilst they can be often be converted to family homes financial incentives drive creation of poor quality privately rented flats Poor quality accommodation coupled with poor local economy leads to acute social deprivation

A Market Issue Structural Change in required in housing markets Deal with cause not just symptoms Unique features of resort town housing markets HMO stock does not serve local economy In migration of households with low social capacity High levels of transience Areas of market predominantly funded by Housing Benefit

Local Responses Common factors exist whilst; Every town is unique and requires a localised response Need to understand local pressures and market drivers Tool box of interventions could be developed that can then be applied locally Need expertise and capacity at local level

What needs to be done Reduce perverse market incentives that create and sustain poor quality private rented sector Local flexibility in administration of Housing Benefit setting space and amenity standards Planning controls Direct intervention in market by local authorities

Reduce Financial Incentives Local flexibility in setting HB levels Reduced payment where Planning Permission for change of use not obtained Certificates of Lawfulness not acceptable Levels set to reduce incentive for poor quality accommodation Objective - to create market environment for better quality housing

Enforcement Local setting of minimum room size requirements sleeping in living rooms not acceptable 1 bed flats must have double bedrooms bedsits only suitable for one person Limit sharing of kitchen and bathroom facilities Only small shared houses okay to share kitchens limit to students or 4/5 people

Planning controls Require planning permission for conversion to HMO Align definition of HMO with Housing Act Require planning permission for change of use of holiday flats to permanent use Removed permitted development rights for flats over shops

Direct Intervention Creation of SPV’s to acquire HMOs and redundant guesthouses Convert to quality houses and flats Rent and market rates Sales and affordable housing options PLWB and/or private finance options

Support for Local Authorities Capacity building/developing local expertise Coordination of health and social care and support services to neighbourhood and housing initiatives Address barriers to sustainable communities Maximise use of existing powers Licensing regimes/proactive and robust enforcement Joining up Planning and Housing powers