Why Your Small HMO Needs Planning Permission

The Key Facts

• Nationally, changing a family home (C3) to a small HMO (C4, 3-6 occupants) is a permitted development right in England.

• However, a local council can remove this right by issuing an Article 4 Direction for a specific area.

• If your property is in an Article 4 area, you will need to submit a full planning application for the change of use.

• Always check your local council's website for Article 4 maps before purchasing a property to convert.

What Are HMO Permitted Development Rights?

In England, the planning system provides certain "permitted development rights" that allow for minor forms of development to proceed without needing to apply for full planning permission. One of the most well-known of these for property investors is contained within The Town and Country Planning (General Permitted Development) (England) Order 2015, often called the GPDO. Specifically, Class L of Part 3 of Schedule 2 grants the right to change the use of a dwellinghouse (Use Class C3) to a small House in Multiple Occupation (Use Class C4), which accommodates between three and six unrelated individuals. This has historically made creating smaller shared houses a relatively straightforward process from a planning perspective, avoiding the fees, delays, and uncertainty of a full application.

The Game Changer: What is an Article 4 Direction?

This is the crucial exception every investor must understand. An Article 4 Direction is a legal tool used by a Local Planning Authority (LPA) to withdraw specific permitted development rights in a defined geographical area. Think of it as a local override to the national rules. When an Article 4 Direction is in place targeting Class L, it removes the automatic right to change from C3 to C4. It doesn't ban HMOs outright, but it forces you to go through the front door of the planning department and submit a full planning application, which can then be approved or refused based on local policies.

Why Do Councils Use Article 4 for HMOs?

Councils introduce Article 4 Directions to regain control over the development of HMOs in their area. They are typically implemented in neighbourhoods where there is a perceived over-concentration of shared housing, often around universities or major employment hubs. The primary reasons cited by councils include:

• Protecting Family Housing: To prevent the loss of traditional family homes in an area.

• Managing Local Services: High concentrations of HMOs can put pressure on services like waste collection and on-street parking.

• Preserving Community Balance: To avoid transient communities and maintain a more balanced mix of housing types.

• Maintaining Amenity: To control issues related to noise, disturbance, and the general character of a residential street.

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How to Check if Your Property is in an Article 4 Area

Finding out if your target property is affected is the single most important piece of due diligence. Failing to do this can be a project-ending mistake. Here’s a simple process:

1. Identify the Local Council: Use the GOV.UK council finder if you are unsure.

2. Visit the Council's Planning Website: Navigate to the planning section of the council's website.

3. Search for "Article 4": Use the site's search bar to look for "Article 4 Direction" or "HMOs". This will usually lead you to a dedicated page.

4. Check the Maps: Most councils provide interactive maps where you can enter a postcode or street name to see if it falls within a designated Article 4 area. They may also have downloadable PDF maps or simply a list of all affected streets.

5. Contact the Duty Planner: If you cannot find a clear answer online, call or email the council's planning department. Ask to speak to the duty planner and have the full property address ready. This is a free or low-cost service that can provide a definitive answer.

   
   

What Happens if You're in an Article 4 Area?

If your property is covered by an HMO Article 4 Direction, the permitted development right is gone. To proceed with your conversion, you must submit a full planning application for the change of use from C3 to C4. This application will be assessed against the council's Local Plan policies, which may include strict criteria on the maximum percentage of HMOs allowed in a given street or neighbourhood. Your application will require professional drawings, a planning statement, and an application fee, and it carries the risk of refusal.

A Note for Wales, Scotland, and NI

It's vital to remember that planning law is devolved.

• Wales: The system is very similar to England, with Use Classes and permitted development rights that can be restricted by Article 4 Directions.

• Scotland: The Use Class system is different. There is no direct equivalent of the C3 to C4 change. A change of use to an HMO for three or more unrelated people will generally be considered a "material change of use" and require a planning application.

• Northern Ireland: Has its own planning system and Use Classes Order, which includes a C4 class for HMOs. You must check the specific rules with the local council.