Welsh HMO licensing papers reveal live policy debate

Welsh HMO licensing policy remains under active discussion inside the Welsh Government, newly released Freedom of Information papers show, including questions about consultation, public participation and the relationship between licensing and planning.

The material was published on 6th October in response to ATISN 27241. It centres on an earlier Welsh Government statement that “HMO licensing only comes into consideration once planning permission, where required, has been granted” and on complaints about how that position was explained.

Much of the legal advice behind the Government’s position remains withheld under legal professional privilege, but the response confirms that officials hold continuing policy material about consultation, democratic accountability and possible future approaches to HMO licensing arrangements.

What the Welsh HMO licensing papers actually say

The FOI response confirms that the Welsh Government holds information used when considering whether its earlier statement about planning and HMO licensing was accurate.

However, the key internal legal material has not been released. The Government relied on section 42(1) of the Freedom of Information Act 2000, saying the documents contain confidential legal advice and legal comments protected by legal professional privilege.

The same exemption was used for records concerning the interpretation of the words “where required”, alignment with other licensing regimes, internal quality assurance and later consideration of whether any corrective action was needed.

That means the publication does not provide a new definitive legal test for when planning permission must precede an HMO licence. It does, however, show how seriously the issue has been considered internally.

The planning and licensing distinction remains important

Planning control and HMO licensing answer different questions.

Planning is concerned with the lawful use of land and buildings. Depending on the circumstances, a change from a dwellinghouse to shared occupation may require planning permission, may fall within permitted development, or may already be lawful through existing use.

Licensing is a separate housing regulation system concerned with matters such as management, safety and accommodation standards.

The FOI request challenged the way those systems had been described, particularly the earlier statement that licensing comes into consideration only once planning permission has been granted where required.

For property owners, the practical lesson is not to treat either regime as proof of compliance with the other. An HMO licence does not automatically establish a lawful planning use, while planning permission does not remove separate licensing obligations.

Planning Geek’s Use Class C4 guide explains the planning position for small HMOs, while our Wales planning news tracks Welsh-specific changes.

Consultation policy is still being discussed

The most interesting part of the FOI response is what it says about future policy rather than the legal advice that remains private.

The Welsh Government confirms that it holds internal material on whether consultation in HMO licensing matters should be encouraged, discouraged or left to local authority discretion.

That information was withheld under section 35(1)(a) of the Freedom of Information Act because it relates to the formulation and development of government policy.

The response says the material forms part of an ongoing policy discussion and includes analysis of potential future approaches to consultation and regulatory arrangements.

This is significant because the Government is not saying there is no issue to consider. It is saying the policy discussion has not reached a settled position and that officials need space to test options before decisions are made.

Public participation and democratic accountability are also live issues

The FOI request also sought information about the absence of public participation in HMO licensing and what it described as a democratic deficit.

Again, the Welsh Government confirmed that relevant material exists but withheld it under the policy-formulation exemption.

The response says officials have been considering public participation, consultation and housing regulation, including possible future approaches to HMO licensing arrangements.

For practitioners, that does not mean a new consultation right is imminent. It does mean the issue has reached the level of internal policy analysis rather than being dismissed as irrelevant.

The Government says its legal position has not changed

Internal correspondence released with the FOI response includes an official saying that the legal position would not change and that a further response to the complainant would not differ from the earlier answer.

That is useful context, but it should not be read as a substitute for legislation or case law. The underlying legal advice remains privileged and the published documents do not create a new statutory rule.

The Welsh Government’s formal HMO guidance for local authorities remains an important source for the licensing framework, while the planning position still depends on the lawful use of the particular property and any relevant planning controls.

Why this matters for HMO owners and applicants

Confusion between licensing and planning can become expensive.

An owner may spend money bringing a property up to licensing standards only to discover that the planning use is not lawful. Conversely, a planning permission does not guarantee that a property satisfies licensing requirements.

The risk is greater where a local planning authority has removed permitted development rights, where the number of occupiers changes the planning use, or where historic evidence is needed to prove an existing lawful HMO.

Planning Geek regularly reports appeal decisions where licence records, tenancy agreements and occupancy evidence are relevant to a lawful-use claim, but none of those documents should be treated as conclusive in isolation.

What to watch next in Wales

The key question is whether the internal policy work identified in the FOI response turns into a published consultation, revised guidance or a formal policy proposal.

The documents do not give a timetable. They also make clear that some of the thinking remains preliminary.

That means the publication is best read as evidence of an active policy debate rather than an announced change to the HMO licensing system.

If the Welsh Government later proposes a stronger consultation mechanism or new guidance on the interaction between planning and licensing, that would justify a separate substantive update.

Planning Geek view

The FOI release is useful precisely because it shows where the uncertainty sits.

The Welsh Government has not published the legal advice behind its earlier wording, but it has confirmed that consultation and public participation in HMO licensing are being actively considered as policy questions.

For owners and advisers, the safest approach remains to check planning and licensing separately. Do not assume that progress under one regime solves the other.

Further reading:Welsh Government ATISN 27241; FOI response dated 28th September 2026; Welsh Government HMO guidance for local authorities.