Greenwich Council Clashes Over HMO Restrictions in Local Plan Greenwich 2026

Key Points

• Council Debate Erupts: Greenwich Council’s deputy leader, Jackie Smith, accused Green Party councillors of demonising bedsit tenants during a heated discussion over the borough’s draft Local Plan.
• Rapid HMO Growth: Analysis of local authority data by The Greenwich Wire reveals that licensed Houses in Multiple Occupation (HMOs) in Greenwich reached 1,526, up from 811 during the same period last year.
• Proposed Rules: The draft 15-year planning blueprint proposes setting a minimum property size of 130 square metres for new HMO conversions and introducing an overconcentration threshold banning new HMOs if three existing or permitted bedsits already exist within the nearest ten neighbouring properties.
• Opposition Backlash: Green and Conservative councillors argued that the proposed overconcentration limit is not strict enough to curb the conversion of family housing.
• Public Consultation: A six-week public consultation on the draft Local Plan officially opened following approval by councillors at their full council meeting on July 22.

Greenwich (South London News) July 30, 2026 — A fierce political disagreement over the expansion of Houses in Multiple Occupation (HMOs) has broken out at Greenwich Council as a crucial public consultation into the borough’s future development framework officially begins.

As reported by The Greenwich Wire, Greenwich Council’s deputy leader, Councillor Jackie Smith, publicly accused Green Party councillors of demonising residents living in bedsits and shared housing. The exchanges took place during a full council meeting on July 22, where elected members gathered to approve the launch of a six-week public consultation on the draft Local Plan—the statutory document that will guide planning and development across the borough for the next 15 years.

What Prompted the Row Over HMOs at Greenwich Council?

As reported by The Greenwich Wire, the heated exchange was sparked by proposals within the new draft Local Plan designed to regulate the conversion of residential properties into HMOs. Under existing planning policies, a lack of specific restrictive guidelines has enabled property owners and landlords to acquire traditional family-sized dwellings and divide them into individual room lettings, leaving local planning committees with limited statutory grounds to resist applications.

During the debate, Deputy Leader Jackie Smith defended the role of shared accommodation in meeting local housing demand, cautioning against political rhetoric that stigmatises individuals residing in HMOs. The debate underscored growing political friction over how the borough should balance high demand for low-cost private rented units against community concerns regarding neighbourhood density, parking, and loss of single-family housing stock.

What Do Council Data Trends Show About the Rise of Bedsits in Greenwich?

According to an independent analysis of council records conducted by The Greenwich Wire, the presence of shared accommodation across the Royal Borough of Greenwich has expanded significantly over the past 12 months.

As reported by The Greenwich Wire, this sharp increase highlights how rapidly property owners have utilized existing policy framework gaps to meet demand for multi-let housing across Greenwich.

What Specific Regulations Are Included in the Draft Local Plan?

To control the concentration and physical standards of bedsit accommodation, Greenwich Council officers drafted new criteria within the 15-year planning document.

As reported by The Greenwich Wire, the proposed policy introduces two primary restrictions:

1. Minimum Property Size Threshold: Future HMO conversions will require a minimum total floorspace of 130 square metres, bringing Greenwich in line with controls recently adopted by the neighbouring London Borough of Lewisham.
2. Overconcentration Limits: The plan establishes a density test prohibiting the creation of any new HMO if three existing or permitted HMOs are already located within the nearest ten neighbouring residential properties.

However, opposition members expressed dissatisfaction with these measures. As reported by The Greenwich Wire, both Green Party and Conservative councillors formally voiced concerns that the proposed three-in-ten threshold remains too lenient to prevent entire streets from being dominated by high-density multi-let housing.

What Other Development Controversies Feature in the Local Plan?

While the regulation of bedsits dominated the chamber’s debate on July 22, the Local Plan sets the framework for all forms of construction, infrastructure, and residential allocation across the borough.

As reported by The Greenwich Wire, the broader plan has already generated local debate after residents in Woolwich Dockyard discovered that their residential areas had been designated for potential future redevelopment without direct prior individual notification. Despite these wider spatial strategy elements, council discussions primarily focused on the social and regulatory implications of HMO growth. Following council approval, the formal six-week public consultation period opened to allow residents, business owners, and local stakeholders to submit representations.

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What Is the Background to Greenwich Council’s HMO Planning Framework?

Why Has HMO Regulation Become a Key Local Issue in Greenwich?

For several years, housing pressure across South East London has driven strong market demand for private rented accommodation, particularly affordable single rooms for young professionals, students, and low-income workers. In the absence of borough-wide Article 4 directions or specific Local Plan policies restricting small-scale conversions, property owners possessed wider permitted development rights to alter family dwellings into multi-tenant properties without full planning oversight.

How Does Greenwich’s Approach Compare to Neighbouring Boroughs?

Adjacent local authorities, including the London Borough of Lewisham, previously introduced stricter planning controls to mandate larger minimum unit dimensions and prevent high concentrations of multi-let properties. Greenwich Council’s move to incorporate a 130-square-metre minimum requirement aligns its planning enforcement criteria with regional standards, seeking to ensure that internal space standards prevent overcrowding while establishing clear guidelines for planning inspectors.

How Will This Development Affect Local Residents, Landlords, and Tenants?

Impact on Local Residents and Homeowners

For long-term residents and homeowners in Greenwich, the implementation of an overconcentration policy provides a formal planning mechanism to challenge excessive conversions in single residential streets. If adopted in its current form, the three-in-ten restriction will offer neighbours a basis to object to new planning applications where shared housing is already prevalent. However, because opposition councillors consider the threshold too permissive, residents in densely converted areas may continue to experience localized pressures on street parking, waste management, and neighbourhood infrastructure.

Impact on Landlords and Property Investors

Property investors and private landlords face higher entry barriers for HMO conversions within the borough. The mandatory 130-square-metre threshold will restrict the pool of suitable residential properties eligible for conversion, potentially raising acquisition and conversion costs. Landlords operating existing licensed HMOs may see increased demand for their current portfolios as new supply slows down under tighter planning conditions.

Impact on Renters and HMO Tenants

For tenants relying on shared housing, the proposed space standards aim to ensure improved living conditions and larger internal layouts. However, stricter limits on new HMO approvals could constrain the overall growth of available bedsit supply across Greenwich. In a high-demand rental market, a slowdown in new HMO room availability could place upward pressure on monthly rents for single-room lets across South East London.