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Council under fire over immediate HMO rule change
12:01 AM, 21st August 2025, 8 months ago
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A legal expert has accused a council of “abuse of power” over its failure to give prior warning before introducing new rules for Houses in Multiple Occupation (HMOs).
Bolton Council has introduced an immediate Article 4 direction, meaning landlords can no longer convert family homes into HMOs for three to six occupants without applying for full planning permission.
Des Taylor, director at Landlord Licensing & Defence, slammed the decision, claiming “the council has no case to impose an emergency action without due notice.”
Surge in HMOs
The council says the rules are necessary due to a surge in HMOs, which have risen from around 170 to more than 700 in recent years, many of which are accommodating asylum seekers under government plans.
Under the new rules, the automatic right to convert family homes (C3) into HMOs for three to six occupants (C4) has been removed. The change took effect immediately in June, without the usual prior notice.
Mr Taylor argues that councils normally provide a year’s notice to allow developers and investors to adjust plans and avoid huge financial losses but Bolton council has bypassed this convention.
He pointed out that a typical “back to brick” HMO conversion costs between £200,000 and £250,000, most of which will now have to be written off for each project that was being developed under the assumption of permitted development rights.
Councils should consider compensation schemes for their unreasonable actions
Mr Taylor warned that landlords are being put at risk and called for compensation schemes to protect them from the council’s actions.
He said: “While there might be a case for HMO numbers to be restricted, the council has no case to impose an emergency action without due notice, especially one that puts HMO landlords and developers at risk since they potentially face severe financial losses due to the government’s immigration policy.
“The mounting political pressure was the council’s flimsy excuse for its outrageous action.
“If anything, councils should consider compensation schemes for their unreasonable actions.”
Sets a dangerous precedent
Mr Taylor added that other councils may now see this as a signal to impose similar immediate restrictions.
He said: “This sets a dangerous precedent. Councils are increasingly making abrupt policy changes that disrupt developers’ plans, with little regard for financial commitments made under existing rules.
“Other local authorities may now feel emboldened to follow suit.”
He urged HMO landlords and developers to take extra care with compliance to avoid financial disaster.
He said: “Getting planning, licensing and building control right from the outset is the difference between a profitable project and a financial disaster. The rules can change overnight, sometimes literally. Without compliance built into your plan from day one, your investment could become a liability.”
Landlord Licensing & Defence has supported hundreds of landlords and developers in navigating compliance challenges and defending against enforcement actions.
Landlords and developers can book a no-charge, no-commitment 10-minute diagnostic call with an expert on HMO planning, planning enforcement, Rent Repayment Orders or other compliance matters by clicking here or by calling 0208 088 8393.
Tags:
Article 4 direction, Bolton Council, Des Taylor, HMO rules, housing policy, Landlord Licensing, Landlord Licensing & Defence, Landlord rights, planning permission, property investors, property law
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Member Since May 2015 - Comments: 2197 - Articles: 2
10:58 AM, 21st August 2025, About 8 months ago
Next, Bolton Council will be applying to eliminate hotel housing for Asylum Seekers. When will local and national authorities learn that landlords are part of the solution rather than the problem.
Member Since March 2022 - Comments: 365
11:14 AM, 21st August 2025, About 8 months ago
Having to apply for planning permission for smaller HMO’s is a good idea. It means that HMO’s can’t just pop up in normal residential streets. The planning process means that the existing neighbours have to be informed, plans can be inspected, and anybody can raise objections for consideration at planning meetings.
While some HMO’s might be for the “professional” people referred to in planning applications, realistically we all know that is not the case. HMO’s are springing up everywhere (round here empty pubs are a popular choice). The trend is going to continue apace as moving illegal migrants out of hotels will increase demand for cheaper forms of housing to reduce Government spending.
Member Since January 2025 - Comments: 57
10:27 PM, 21st August 2025, About 8 months ago
Reply to the comment left by northern landlord at 21/08/2025 – 11:14No, it’s a terrible idea
I live near a major uni and hospital and the council invoked Article 4, now a lot of the properties that were student houses are now housing drug addicts/ex-offenders as these are exempt from the rules. No license needed, no minimum room sizes etc
Not only are the landlords getting 5x market rate (compared to a family), we now have a crime epidemic, with 29,000 supported housing people in my city alone, costing roughly £300M to house.
Member Since January 2025 - Comments: 57
10:28 PM, 21st August 2025, About 8 months ago
Reply to the comment left by northern landlord at 21/08/2025 – 11:14
Also, a 2 bed apartment rented to a married couple and their friend is now classed as a HMO
Member Since September 2018 - Comments: 3528 - Articles: 5
10:58 AM, 23rd August 2025, About 8 months ago
Planning permission and a licence should be gained for any property no matter what if its NOT going to be a single let to a family.
Small HMO’s are being found in residential areas and causing issues with parking/illegal sublets/Air bnb etc.
If a property like a family 3 bed house was built in a residential area, then it should be used for that purpose alone. ANY changes to the occupancy being used for any rental purpose outside of one family unit needs to be regulated.
Member Since March 2016 - Comments: 22
9:38 PM, 23rd August 2025, About 8 months ago
Reply to the comment left by Billy Gunn at 21/08/2025 – 22:28
That’s been a HMO since 2004! Just not mandatory licencable
Member Since September 2018 - Comments: 3528 - Articles: 5
12:40 PM, 24th August 2025, About 8 months ago
Here’s my issue with all this.
I have a 5 bed house in a not such great area. 20 years ago we had students rent it until the Uni’s built PBSA.
We then let direct to the HO (when they did direct contracts) and house single ladies and kids from Africa.
Then it moved back into a single family let for 12 years. This family were evicted at the end of the day as they trashed the place/rent arrears etc, so it was refurbed.
Despite being huge and put up for slightly below market rate, no private paying families wanted to move here.
The EASY option would have been to give it to Serco and forget about it and achieve more rent, but we took the moral high ground and decided against this.
I offered it to the HO again for use by large Afghan families under the ARAP scheme, but they had all landed in London and all refused to be located out of the area, despite having no local connections. (one family alone taking up 4 hotel rooms) Councils didn’t push them to move as they were getting a very nice kick back from central government for ‘additional costs’ related to such arrivals for at least three years)
We offered it out to registered social housing providers (outside of the LT Act) for long term use, but none were interested due to the area (and ironically due to the concerns over the amount of neighbouring houses that has been given over to Serco or exempt accom providers).
So what options were left? Its in and Article 4 area and so inevitably would not get permission for a ‘legit’ HMO as locals and council would probably kick off but to be honest didn’t want to go down the HMO route at all.
Serviced accommodation/AirBnB not an option given the location.
In the end we gave it to a provider that seeks houses from LL on behalf of the Council itself for family units only for temp accommodation use. It pays market rate now (but fixed for the three year contract) and exempt from SL and of course the RRB. The family in there will inevitably stay here as the council has ZERO bigger homes to offer them.
Member Since May 2015 - Comments: 2197 - Articles: 2
12:53 PM, 24th August 2025, About 8 months ago
Reply to the comment left by Reluctant Landlord at 24/08/2025 – 12:40
I do so love the rules and regulations that inhibit housing being used in the middle of a housing crisis.
Member Since July 2013 - Comments: 2002 - Articles: 21
4:49 PM, 28th August 2025, About 8 months ago
Reply to the comment left by Reluctant Landlord at 23/08/2025 – 10:58
So you can’t have a lodger without obtaining planning permission.