Article 4 Directions: The Invisible Barrier to HMO Investment
Many councils have removed Permitted Development rights for HMO conversions in their area using Article 4 Directions. Buying a property to convert to an HMO without checking Article 4 status can result in a property that cannot be licensed.
An Article 4 Direction requires a planning application for any change of use from a single dwelling (C3) to a small HMO (C4 — up to 6 occupants). In areas where Article 4 applies, councils use this to control HMO density. Applications can be refused if the proportion of HMOs in a street already exceeds the local policy threshold. Before purchasing any property for HMO conversion, investors must check: (1) whether an Article 4 Direction applies to that address; (2) the local HMO percentage threshold; and (3) whether a licence is immediately available. Your local authority planning portal provides this information at no cost.