Summary
Most landlords know they need an HMO licence. Far fewer realise that operating an unlicensed HMO isn't their only risk - running one without planning permission is an entirely separate offence with equally severe consequences. Planning and licensing are two distinct legal systems that both apply to HMOs, yet they are frequently confused, or, fatally, only half-addressed.
This guide explains exactly how planning permission and HMO licensing interact, when you need one or both, what Article 4 Directions mean for your property, and how to protect yourself from enforcement action that can cost landlords hundreds of thousands of pounds.
Planning vs Licensing: Two Completely Different Things
Before anything else, this distinction must be clear:
Planning permission is governed by the Town and Country Planning Act 1990. It controls the use of land and property. When a house changes from a single family home to a shared property occupied by unrelated individuals, that is a change of use in planning law, and depending on the property's circumstances, it may require permission from the local planning authority (LPA).
HMO licensing is governed by the Housing Act 2004. It controls how a property is managed. It sets standards for room sizes, fire safety, facilities, and landlord conduct. A licence is issued by the council's housing team, not its planning department.
These are two separate applications, two separate councils departments, two separate approval processes, and two separate sets of penalties for non-compliance.
Having a valid HMO licence does not mean your planning position is lawful. Equally, having planning permission for HMO use does not mean you don't need a licence. In Article 4 areas in particular, now covering most of England's major cities, landlords must satisfy both regimes before a single tenant moves in.
Article 4 Directions: What They Are and Why They Matter
The Basics
An Article 4 Direction is a planning instrument made under the Town and Country Planning (General Permitted Development) (England) Order 2015. It allows a local authority to withdraw specific permitted development rights within its area - in this context, the right to change a house (C3) to a small HMO (C4) without planning permission.
Article 4 does not ban HMOs. It means you must apply for planning permission first - giving the council control over where, how many, and what standard of HMOs are created.
Councils introduce Article 4 Directions for a combination of reasons: preventing over-concentration of HMOs in specific streets or neighbourhoods, protecting the supply of family housing, managing anti-social behaviour and parking pressure, and gaining oversight of housing quality in the private rented sector.
The Expansion of Article 4 Across England
The pace of new Article 4 Directions has accelerated sharply. Here are some recent examples:
Walsall - Borough-wide direction in force from 1 October 2025
Middlesbrough - Borough-wide direction from 8 February 2025
Rugby - Central area direction from 23 February 2025
Ealing (London) - Immediate direction from 30 October 2024, non-immediate from 14 November 2025
Hillingdon (London) - Borough-wide direction confirmed 2025
Nottingham -Long-standing city-wide Article 4
Councils with Article 4 Directions already include London boroughs such as Westminster, Camden, Islington, Hackney, Lambeth, Southwark, Tower Hamlets and many others, as well as Oxford, Bristol, Brighton, Leeds, Manchester, Birmingham, Liverpool, and Sheffield.
If you are buying, inheriting, or converting a property to HMO use, checking the Article 4 status of that specific address is not optional — it is the first thing to do.
What Councils Consider When Deciding Planning Applications in Article 4 Areas
Once Article 4 applies, the council will assess your planning application against its Local Plan policies. Common criteria include:
Concentration limits: Many councils apply a maximum density of HMOs in a given street or area. Nottingham, for example, has historically stated that permission is unlikely to be granted where an area is already heavily concentrated with HMOs. Westminster and other London boroughs assess applications against their own thresholds.
Property size: Some councils, such as Waltham Forest, require a minimum gross internal floor area (for example, 124m²) for HMO conversions, to ensure the property is suitable for shared occupation without being cramped.
Parking and highways: Larger HMOs often trigger requests for transport statements or parking assessments, particularly in Sui Generis cases.
Management plans: Councils increasingly request a property management plan demonstrating how the landlord will manage ASB, noise, waste, and maintenance.
Housing mix: The National Planning Policy Framework encourages councils to maintain a balanced housing mix. Applications that would tip an area further away from family housing face more scrutiny.
Certificates of Lawful Use: Protecting Your Position
A Certificate of Lawful Use or Development (LDC or CLUD) is a formal legal document issued by the planning authority confirming that a property's existing or proposed use is lawful in planning terms. It is not planning permission — it is a legal record.
Certificate of Lawful Existing Use (CLEUD, Section 191)
Used where a use has already been established through continuous, uninterrupted occupation for the required period. For C4 HMOs, the applicable time period has been complex historically due to the introduction and withdrawal of permitted development rights at various dates. For Sui Generis HMOs, the general rule is 10 years of continuous use.
A CLEUD is valuable because:
It confirms the lawful use in writing, protecting you against future enforcement action
It provides comfort to lenders and buyers if you remortgage or sell
It removes uncertainty about the planning position
It is evidence against any council enforcement notice challenging the use
Certificate of Lawful Proposed Use (CLOPUD, Section 192)
Used before a change is made, to confirm that a proposed use would be lawful. For example, if your property has no Article 4 restriction and you want confirmation that converting to C4 is permitted development, a CLOPUD provides that assurance in writing.
The C4 to Sui Generis Strategy
One frequently explored route is using an LDC to expand a lawful six-occupant C4 HMO to a seven-occupant Sui Generis HMO, on the basis that adding a single occupant does not constitute a "material change of use" under Section 55 of the Town and Country Planning Act 1990.
Whether a change of use is "material" is a question of fact and degree. The strength of this approach depends on the specific circumstances of the property - the size of communal areas, the nature of the reconfiguration required, and the character of the existing use. Article 4 Directions are irrelevant to this question: they only restrict C3 to C4, not C4 to Sui Generis. If the existing C4 use is established and lawful, the Article 4 has no bearing on the analysis.
This is a nuanced legal route that requires careful preparation and professional support. Getting it wrong means paying full planning application fees on an application likely to be rejected.
The Interaction Between Planning and HMO Licensing: A Dual System
Understanding how planning and licensing interact in practice is critical. The two systems do not operate in sequence - they are parallel obligations.
How Licensing Departments Use Planning Status
Many councils now link their housing licensing and planning enforcement departments. This has practical consequences:
Licence refusal on planning grounds: Some councils will refuse an HMO licence, or grant only a short-term licence (typically 12 months), where the planning position is unclear or disputed. Nottingham, for example, has formally adopted this approach: if a landlord cannot demonstrate lawful planning use, they receive only a 12-month licence, within which they must either secure planning permission or face licence refusal.
Licensing as a trigger for planning investigation: When a landlord applies for an HMO licence, the council's housing team may flag the application to the planning department if there is no planning record for HMO use at that address. This can initiate an investigation into whether a planning breach has occurred.
Licence conditions tied to planning: Where planning permission has been granted with conditions — such as restrictions on the maximum number of occupants, management plan requirements, or a requirement that the use ceases if it reverts to single family use for a period — the licensing department may embed these conditions into the licence itself.
What Planning Permission Cannot Fix
A grant of planning permission for HMO use does not mean:
The property meets HMO licensing standards (room sizes, fire safety, facilities)
The property complies with building regulations
The landlord passes the fit and proper person test
The property is free from HHSRS hazards
Equally, a valid HMO licence does not mean:
The planning use is lawful
No planning enforcement action can be taken
The property complies with building regulations
Both approvals are needed. Both require separate applications, separate fees, and separate compliance with separate standards.
Building Regulations: The Third Layer
Physical works carried out when converting or adapting a property for HMO use — fire doors, escape windows, sound insulation between rooms, electrical rewiring, addition of bathrooms - typically require building regulations approval under the Building Regulations 2010. This is a third, entirely separate regulatory system.
Many landlords sequence their compliance correctly: planning first (if required), then building works with building regulations approval, then HMO licence application. Reversing or skipping this creates serious risk.
Planning for HMOs: Practical Guidance
Step 1: Check the Planning Position Before You Buy or Convert
Before committing to an HMO conversion, check:
Is there an Article 4 Direction? Search the council's planning portal or call the planning department. Article 4 Directions are registered on the Land Register.
What is the property's current lawful use? Check the planning history on the council's online portal. Look for any historical permissions, enforcement notices, or certificates.
Does the property already have a lawful HMO use? If so, what use class — C4 or Sui Generis?
Are there planning conditions on any existing permission? These may restrict occupancy numbers, require management plans, or impose other obligations.
What does the council's Local Plan say about HMOs in that area? Many councils publish Supplementary Planning Documents (SPDs) on HMOs with detailed policies.
Step 2: Prepare a Strong Planning Application
Applications for HMO conversions in Article 4 areas need to be thorough. Common reasons for refusal include:
Insufficient evidence that the area can accommodate another HMO without harmful concentration
Inadequate management plan
Below-minimum floor areas or ceiling heights
Poor fire safety provision in the design
Insufficient parking or cycle storage
Failure to address the planning authority's local policies
A well-prepared application includes: a covering planning statement that addresses the relevant Local Plan policies; scaled floor plans showing room sizes, bathroom and kitchen provision, escape routes, and fire door positions; a management plan outlining how the property will be managed; and, for Sui Generis applications, sometimes a transport statement or noise assessment.
Step 3: Do Not Start the HMO Use Before Planning is Granted
This is the most common mistake. Landlords complete the conversion works, advertise rooms, take tenants, and then apply for planning permission retrospectively. Councils can and do refuse retrospective applications. If they do, they will issue an enforcement notice requiring the use to cease. At that point, you face the cost of decanting tenants and losing rental income, on top of the enforcement penalties.
Apply for planning permission. Wait for the decision. Then convert and let.
Step 4: Secure the HMO Licence Before Tenants Move In
Once planning permission is granted, apply for the HMO licence immediately. Licence applications can take several months to process, particularly in busy urban councils. Operating without a licence, even while the application is pending, is a criminal offence under the Housing Act 2004.
Note that some councils run a "parallel application" process allowing you to submit the planning application and licence application simultaneously. This can save time but requires you to be confident the planning application will succeed.
How Barnab Helps With HMO Planning Applications and Licensing
Planning applications for HMO conversions are more technical and more likely to be scrutinised than most residential applications. The overlap with HMO licensing adds further complexity. Getting the sequencing wrong — or submitting an under-prepared application — is expensive.
Barnab guides landlords and investors through the entire HMO compliance process:
Pre-purchase due diligence We check Article 4 status, existing planning history, Local Plan policies, and whether any existing HMO use is lawful — before you commit to a property.
Planning application preparation We prepare planning statements, floor plans, and management plans to give your application the best possible chance of success. We know what councils look for and what triggers refusal.
Lawful Development Certificates Whether you need a CLEUD to confirm an existing use or a CLOPUD to confirm a proposed change is permitted development, we handle the application from start to finish.
HMO licence applications Once planning is resolved, we manage your HMO licence application — checking the property meets room size and facility standards, compiling required documentation, and liaising with the council's housing team.
Portfolio compliance reviews For landlords with multiple properties, we assess the planning and licensing position across the entire portfolio, identifying risk and prioritising remediation.
Book a free consultation to discuss your property's specific position.
Useful Resources
Government Guidance:
Finding Local Requirements:
Your local council's planning portal (search the property address for Article 4 Directions and planning history)
Your local council's housing team (for HMO licensing schemes and requirements)
Barnab Services:
This article provides general information about HMO planning permission and property licensing. It is not legal advice. Planning requirements vary by local authority, property, and specific circumstances. Always verify Article 4 status and planning history with your local planning authority before making decisions. Last updated: February 2026
