If you’re an HMO landlord, or thinking about converting a property into a house in multiple occupation, there’s one thing you need to know: the planning system is changing fast — and not in your favour.
For years, landlords could create profitable HMOs with little or no planning involvement. Those days are gone. Councils are tightening controls, introducing Article 4 Directions, and cracking down on shared houses that don’t have the right HMO planning permission.
The golden age of HMO investing
HMOs have always been popular with landlords chasing higher yields. Bigger houses, more rooms, higher rents – it’s a simple formula.
Until recently, planning was rarely an issue. You could buy a three-bed semi, convert it into a six-bed HMO, and start letting rooms almost immediately.
But in 2010, planning law changed. Local councils were given new powers to control HMO use through the planning system. Since then, the number of HMO planning appeals has rocketed — from just 83 in 2010 to more than 500 a decade later.
The message is clear: planners are paying attention to HMOs, and landlords who ignore them are taking big risks.
Why councils are cracking down on HMOs
From a landlord’s point of view, HMOs make perfect sense. They meet strong demand for affordable rooms and generate higher income per property.
But planners see things differently. They worry about:
- Noise, parking and rubbish complaints
- Loss of traditional family homes
- “Studentification” and unbalanced neighbourhoods
In some areas, councils have decided that no more HMOs will be allowed at all. Every new planning application is refused, no matter how well designed or managed.
To make things worse, planning enforcement for HMOs is now routine. Councils actively investigate landlords who don’t have planning consent — and some have been forced to revert their HMOs back to single-family houses.
The big misunderstanding: planning vs licensing
The biggest mistake HMO landlords make is that they think if they have a HMO license, they don’t need planning permission.
Unfortunately, HMO licensing and HMO planning are completely different.
- Licensing deals with safety and standards inside the property — room sizes, fire safety, waste storage, and management.
- Planning deals with the impact on the area — parking, neighbours, and the mix of housing in the community.
You can be fully licensed and still be in breach of planning control. You can also have planning permission but be operating illegally without a licence. Both are required.
If you’re not sure which permissions your property needs, get advice before the council comes knocking at your door.
The rise of Article 4 Directions
Even where planning permission isn’t normally required, councils can remove those rights using an Article 4 Direction.
That means that in affected areas, even small HMOs — houses shared by just three or four people — now need full HMO planning permission.
Article 4 Directions are spreading fast across England. They began in student areas like Nottingham, Oxford, and Leeds, but are now common in London boroughs and commuter towns too.
If you’re buying or converting a property, always check for an Article 4 Direction before exchanging contracts. A simple search of the council website or a quick call to a planning consultant can save you from an expensive mistake.
HMO enforcement is increasing
Local planning enforcement teams are busier than ever. Councils monitor letting websites, analyse council tax data, and respond quickly to complaints from neighbours. Planning enforcement investigations are stressful and unpleasant.
If they discover that your HMO doesn’t have the correct planning consent, they can issue an Enforcement Notice.
That’s a legal order requiring you to stop using the property as a HMO – often within weeks. You could lose your tenants, your rental income and even the property’s resale value.
The good news? Most enforcement cases can be appealed or resolved with professional help. The key is to act quickly and not ignore warning letters.
The new reality for HMO landlords
The days of effortless, low-risk HMO investing are over. Councils are under pressure to protect family housing and manage shared accommodation. They’re using every tool available – stricter policies, Article 4 Directions, and active planning enforcement.
But that doesn’t mean the opportunity has disappeared.
In fact, once an Article 4 Direction is in place, existing lawful HMOs become more valuable, because no new ones can easily be created. If you already have a lawful HMO or secure planning permission, you’re sitting on a scarce asset.
The challenge is getting – and keeping – that lawful status.
How to stay ahead
To survive (and thrive) in the HMO market, you need to understand the planning system — or work with someone who does.
Ask yourself:
- Does my property need planning permission for HMO use?
- Is there an Article 4 Direction covering my area?
- Do I have evidence that my HMO use is lawful?
- Could I apply for a Certificate of Lawfulness (Lawful Development Certificate)?
- What would I do if the council investigated my property?
If you can’t answer these confidently, it’s time to get expert advice.
My colleagues at Just Planning specialise in helping HMO landlords and small developers secure planning permission, appeal refusals, and deal with enforcement. We’ve represented hundreds of landlords across England — often winning cases where others said there was no hope.
For example, we are recently won HMO appeals in Enfield, Northampton (West Northamptonshire Council) and Wirral, and obtained Lawful Development Certificates in Greenwich and Newham.
For more on how to get planning permission for HMOs, check out my book, Planning for HMOs: A Practical Guide to Planning Permission for Houses in Multiple Occupation. It explains, in plain English, everything landlords need to know about planning permission, Article 4 Directions, Certificates of Lawfulness, and enforcement.
Whether you already own HMOs or are planning your first conversion, it’s packed with real-life examples, insider insights, and practical advice drawn from years of helping landlords through the planning system.
👉 Available now at www.martingaine.com/hmos.
