Bexley council in south east London says it is going to announce what it describes as a “crackdown” on HMOs next month.
It claims there has been a rapid increase in the number of smaller homes converted into HMOs in the borough.
A statement says: “The council is working to implement a range of new controls to take firm control of the issue. It wants to ensure that smaller properties that are converted to HMOs provide suitable accommodation and reduce the risk that they create problems for other residents.”
A spokesman for the council states: "This is something which has only recently started to cause concern and we are taking steps to ensure we have the powers we need to protect the occupiers of the properties and their neighbours. London is growing fast and the demand for housing far exceeds the supply.
“It's important to remember that these properties help meet people's genuine need for housing. If they are properly managed, they do not generally cause problems."
The council says it has been looking at a package of measures which may include a selective licensing scheme for parts of the borough, securing powers to licence small two-storey HMOs, and the adoption of an Article 4 directive which would remove planning permitted development rights for smaller HMOs.