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When investing in property, one of the most common questions landlords ask is whether they need planning permission to operate a House in Multiple Occupation (HMO). The answer isn’t always straightforward. Some HMOs fall under permitted development rights, while others require formal planning consent depending on size, location, and tenant numbers.
What Is a HMO?
A House in Multiple Occupation (HMO) is a property rented out by at least three people who are not from the same household but share facilities such as a kitchen or bathroom. They are particularly popular among students, young professionals, and low-income tenants because they provide affordable accommodation.
When Planning Permission Is Not Required
Not all HMOs require planning permission. Generally, if your property is rented to between three and six tenants, it may fall under what’s called C4 use class, which often does not require planning consent. In many areas, you can convert a single dwelling (C3 use) into a small HMO (C4 use) under permitted development rights.
When Planning Permission Is Required
You are more likely to need planning permission in the following scenarios:
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Large HMOs: If the property will house seven or more tenants, it falls under the sui generis use class and usually requires planning approval.
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Article 4 Directions: Some local councils have introduced restrictions (Article 4) removing permitted development rights. In these areas, planning permission is required even for smaller HMOs (three to six tenants).
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Structural Changes: If you are making significant alterations to the building, such as extensions or loft conversions, planning consent may also be required regardless of the number of tenants.
Licensing vs. Planning Permission
It’s important to remember that licensing and planning permission are different. Even if your HMO does not need planning approval, you may still need a licence from the local council. Licences are usually required for:
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Large HMOs (five or more tenants, forming more than one household, sharing facilities).
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Smaller HMOs in areas with additional licensing schemes introduced by local councils.
Why This Matters for Property Investors
From a lending perspective, mortgage providers want to see that your property complies with all planning and licensing requirements. An unauthorised HMO can affect:
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Property valuation
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Mortgage approval
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Future refinancing or sale
That’s why understanding your obligations before converting or letting a property as an HMO is essential.
Final Thoughts
Whether you need planning permission for an HMO depends on tenant numbers, property size, and local council rules. Small HMOs may be possible under permitted development, but larger HMOs and properties in Article 4 areas will almost always require formal approval.
At Advocate Finance, we specialise in helping landlords and property investors secure finance for HMOs, including properties needing refurbishment, conversion, or planning approval.
Want expert advice tailored to your situation? Contact Advocate Finance today to explore your funding options for HMO investments.
