Labour politician slams HMOs as “state financed cash for investors”

Labour politician slams HMOs as “state financed cash for investors”

A Labour website has publicised an activist’s strident attack on HMOs and their landlords

Labour councillor Andy Bates writes on the Labour List website: “HMOs are a state-financed cash machine for investors. 

“As the Home Office, councils and other organisations compete for temporary accommodation there are big profits to be made by the owners.”

Citing one example in the councillor’s area of south London, Bates goes on to say: “As Labour looks to constrain the projected increase in welfare spending there is an important lesson to be learned. 

“Our focus for reducing expenditure should be on excessive and dysfunction profit taking, allowing us to concentrate employment and welfare support on those who need it most.”

In recent months Labour and Reform UK politicians have separately stated increasingly strident criticism of HMOs.

Reform UK-controlled Newcastle-under-Lyme council says it’s investigating imposing an Article 4 Direction across the entire council area to control HMOs.

If implemented, anyone wanting to turn a residential property into shared housing, or HMOs, would need permission from the council.

A spokesperson for that authority says: “Supported accommodation can play an important role when it is delivered properly and by responsible providers. 

“But there must be stronger oversight of housing standards, safeguarding, support provision and the wider impact on local neighbourhoods.”

Numerous Labour councils are adopting similar measures.

Tameside Council: Implemented an immediate Article 4 direction in late 2025 to prevent the proliferation of HMOs.

Warrington Council: Approved borough-wide controls and a new Supplementary Planning Document (SPD) to prevent unfair HMO clustering.

Luton Council: Introduced a selective licensing scheme in mid-2026 to better regulate HMOs and protect tenants.

Wigan Council: Pushed to mandate planning permission for all HMOs to stop developers from exploiting local housing.

Stoke-on-Trent City Council: Launched a major review and property check initiative for HMOs to address resident complaints. 

This article is taken from Landlord Today