The Truth About HMO Article 4 Areas: What You Need to Know
( 3-4 Min Read )
If you’re investing in Houses in Multiple Occupation (HMOs), you’ve likely heard of Article 4 areas — and possibly felt a shiver run down your spine when you did.
Article 4 Directions often get a bad reputation among investors. They’re seen as restrictive, anti-development, and designed to block HMO growth altogether. But the truth is a bit more nuanced — and if you understand how they work, Article 4 areas don’t have to be a deal-breaker.
Let’s break it down.
🏘 What is an Article 4 Direction?
Under normal planning rules in England (called Permitted Development Rights), you can convert a single-family dwelling (C3 use class) into a small HMO (C4 use class – up to 6 unrelated people) without needing full planning permission.
But in certain areas, councils have introduced an Article 4 Direction, which removes this automatic right. That means you need to apply for planning permission if you want to convert a house into an HMO — even a small one.
It’s important to understand: Article 4 doesn’t stop HMO development completely. It just brings the process under tighter control.
❌ Myth: Article 4 Means HMOs Are Banned
✅ Truth: It’s About Control, Not Prohibition
Contrary to popular belief, most councils don’t introduce Article 4 to block all HMOs. In fact, some local authorities still support well-designed, well-managed shared housing — especially in areas where there's demand from students or young professionals.
So why introduce Article 4?
To manage saturation.
In some neighbourhoods, the number of HMOs has reached a level where local planning authorities deem them to start to negatively impact the area.
An Article 4 Direction allows the council to say: “We’re not stopping HMOs — but we do want a say in where they go and how many there are.”
🧭 What Happens If You Want to Invest in an Article 4 Area?
You’ll need to apply for full planning permission to create an HMO — even if it’s under 6 people.
And that means:
The council will assess your application based on local planning policy
They may look at HMO concentration thresholds (e.g. no more than 10% of homes on a street can be a HMO)
You may need to provide extra detail in your application (e.g. bin storage, room sizes, layout)
Applications can be refused — but many are approved if the case is well made
👉 Tip: A strong planning strategy, supported by a professional who understands local policy, can make a big difference.
⚖️ Is It Still Worth Investing in Article 4 Areas?
Absolutely — if you know what you’re doing.
In fact, Article 4 areas can create opportunity:
Less competition from casual landlords or DIY investors
Higher demand for HMOs in constrained supply areas
Better long-term yields and increased HMO values.
Yes, the planning process adds some complexity — but if you can get permission, you’re entering a market with tighter supply and often better returns.
🔍 Final Thoughts
The key takeaway? Article 4 Directions are not the enemy.
They’re a planning tool used by local councils to manage — not eliminate — the growth of HMOs. They exist to strike a balance between shared accommodation and single family dwellings.
If you're a serious investor willing to navigate the process, Article 4 areas can actually work in your favour — especially when supported by good design, proper planning advice, and a clear understanding of local policy.