Havering’s Illegal HMO Crisis: 864 Properties, 2026

Key Points

• Official figures indicate just over 300 licensed HMOs in Havering, up from around 267 in 2019.
• Estimates suggest up to 864 HMOs exist when including known and predicted unlicensed properties.
• In 2025, 223 suspected unlicensed HMOs were reported to the council.
• Up to 75 per cent of HMOs in London may be unlicensed, potentially affecting Havering significantly.
• Many properties convert to HMOs without required planning permission, despite licensing.
• Council enforcement includes warning letters, penalties, enforcement notices, and over £460,000 in fines from one crackdown.
• Issues in illegal HMOs include overcrowding, dangerous electrics, fire safety failures, and infestations.
• Resident complaints cover noise, fly-tipping, parking problems, and anti-social behaviour.
• A Hornchurch development was refused retrospective planning permission due to overcrowding and parking concerns.
• Enforcement faces challenges from resource limits and difficulty identifying hidden properties.

Havering (East London Times) April 17, 2026 – The rise of illegal Houses in Multiple Occupation (HMOs) and planning breaches has emerged as a major housing concern in Havering, with evidence pointing to a scale far beyond official records.

Why Are Illegal HMOs Surging in Havering?

Havering has seen a steady increase in licensed HMOs, from around 267 in 2019 to just over 300 currently, driven by the cost-of-living crisis and demand for affordable housing. However, the true extent involves many unlicensed operations.

Estimates place the total at up to 864 HMOs when accounting for known and predicted properties, suggesting hundreds operate without regulation.

Campaigners and housing experts note that up to 75 per cent of HMOs across London may lack licences, implying a substantial hidden issue in Havering. Council data for 2025 records 223 reports of suspected unlicensed HMOs, a sharp rise underscoring the problem’s growth.

What Planning Breaches Are Fueling the Crisis?

Conversion of properties into HMOs without planning permission violates strict use-class rules. Havering Council states clearly that a licence does not grant planning approval, with non-compliant operators facing enforcement and prosecution.

In a recent Hornchurch case, retrospective planning permission was refused for a development used unlawfully as HMOs.

Concerns included overcrowding, parking pressure, and neighbourhood impact. As reported in coverage by The Havering Daily, similar breaches in Romford led to a homeowner losing an appeal after illegal conversion, prompting enforcement action.

Havering Council has issued hundreds of warning letters, penalties, and enforcement notices over the years. One major crackdown alone generated more than £460,000 in fines.

Recent actions ordered two landlords to revert properties to residential use after resident complaints and failed appeals, as detailed by Landlorder.co.uk.

How Does Enforcement Operate Amid Constraints?

Enforcement remains challenging due to resource pressures and the task of detecting hidden properties. The council investigates unauthorised building works, changes of use, and other breaches, prioritising those causing significant harm. In 2026, it enforced notices against landlords for unapproved HMO conversions, with appeals dismissed by a planning inspector.

A council spokesperson stated,

“We will continue to take firm but fair action where planning rules are breached, ensuring developments and property owners follow proper processes and respect local policies,”

according to Landlorder.co.uk reporting. Planning enforcement requests exceed 800 annually and are rising, yet resources limit full response capacity.

What Risks Do Illegal HMOs Pose to Tenants?

Illegal HMOs often feature serious hazards. Cases in Havering have uncovered overcrowded homes, dangerous electrical systems, absent fire safety measures, and infestations, endangering tenants.

These conditions align with broader concerns where one in five in temporary accommodation faces safety hazards like fire risks or faulty wiring, per Shelter reports.

How Are Residents Affected by HMO Growth?

Local residents report daily impacts from poorly managed HMOs, including noise, fly-tipping, parking shortages, and anti-social behaviour.

These issues heighten community tensions, particularly in areas with overcrowding. Broader planning disputes, such as those in Rainham and Noak Hill, amplify resident frustration over land use and enforcement.

What Creates the Two-Tier Landlord System in Havering?

A divide exists between compliant landlords following regulations and others exploiting loopholes for profit, disregarding planning rules at the expense of tenants and neighbourhoods.

Compliant operators maintain standards, while unlicensed ones evade oversight. This mirrors national trends where social housing gains protections, leaving private rentals vulnerable.

HMOs remain essential for affordable housing amid crisis, but illegal growth strains communities. Demand persists, yet enforcement struggles to match the pace of covert operations.

Background of the HMO Development in Havering

The growth of HMOs in Havering reflects wider housing pressures since the cost-of-living crisis intensified. Official licensing began tracking rises from 2019, but unlicensed conversions surged with demand for cheap rentals. Council strategies, including housing inspections under the Housing Act, aim to monitor hazards, yet low complaint wards like Rainham and Upminster contrast with hotspots. Recent Renters’ Rights Act changes from December 2025 enhance enforcement powers, raise fines from May 2025, and increase Rent Repayment Orders, targeting private landlord compliance. Planning rules require specific permissions for HMO use, separate from licensing, with short-term letting breaches also policed. This context shows a borough balancing affordability needs against regulatory gaps exposed over years of rising reports.

Prediction: Impact on Havering Residents and Communities

This development can affect Havering residents through sustained housing pressures if unlicensed HMOs continue evading detection. Tenants may face ongoing safety risks in substandard properties, while communities experience persistent issues like parking and noise, potentially eroding neighbourhood quality. Compliant landlords could see competitive disadvantages, widening the two-tier divide and discouraging investment in legal housing.

Resource-strapped enforcement might prioritise high-harm cases, leaving minor breaches unchecked and slowing resolution of complaints. Rising fines and powers under new acts could deter violations long-term, but hidden operations may persist, maintaining tension between affordability demands and community wellbeing. Residents in affected areas might push for more inspections, influencing council priorities amid broader planning disputes.