When converting or managing an HMO (House in Multiple Occupation), understanding the requirements for licensing and planning permission is crucial. Both are legal obligations, but they serve different purposes. Knowing which permissions apply to your property ensures compliance with regulations and avoids unnecessary penalties.
What is an HMO?
An HMO refers to any property that houses three or more unrelated tenants who share facilities such as kitchens or bathrooms. This arrangement is often used for student accommodation or shared housing for young professionals. While HMOs can offer higher returns than traditional rentals, they also come with increased regulatory scrutiny to ensure tenant safety and proper property management.
HMO Licensing Explained
Licensing is a legal requirement that focuses on the health, safety, and management standards of HMOs. Local councils use licensing schemes to ensure that landlords meet minimum standards for living conditions and tenant welfare.
1. Mandatory HMO Licensing
If your property is occupied by five or more unrelated tenants, you are legally required to obtain a mandatory HMO licence. This type of licence ensures that larger properties are managed correctly and that they meet essential safety and space standards, including fire precautions and adequate living conditions.
2. Additional HMO Licensing
In some areas, councils extend licensing to smaller HMOs through additional licensing schemes. This applies to properties with three to four unrelated tenants in areas where councils aim to improve housing conditions in the private rental sector. If your property is in an area with additional licensing, even small HMOs need a licence to ensure they meet safety standards.
3. Selective Licensing
Selective licensing is broader and applies to all rental properties, including single-family homes and smaller HMOs. This is typically introduced in areas with problematic housing conditions or high levels of anti-social behaviour. Under this scheme, landlords need a licence to ensure their properties are managed according to local standards. A selective licence is usually not required for a property that requires an HMO licence.
Planning Permission for HMOs
Planning permission deals with how the property is used and the impact it has on the surrounding area. While licensing ensures tenant safety, planning permission is concerned with the broader implications of an HMO on the local neighbourhood.
Small HMOs and Permitted Development Rights
If your property is being converted to a small HMO (3-6 occupants), you may not need full planning permission. Under permitted development rights, you can change the use of the property from a family home (C3 Use Class) to a small HMO (C4 Use Class) without requiring planning approval. However, it’s important to check local restrictions.
Large HMOs (Sui Generis)
If your HMO will house more than six tenants, it falls under the Sui Generis Use Class, which requires full planning permission. This is because larger HMOs are considered to have a greater impact on the local area in terms of noise, parking, and property management. Councils will assess these factors when deciding whether to grant planning permission.
Article 4 Directions
Article 4 Directions are used by local councils to limit permitted development rights. This means that in certain areas, you will need planning permission to convert a property into an HMO, even if it would usually fall under permitted development rights. Trafford is one such area where an Article 4 Direction has been introduced to manage the number of HMOs. Here, even small HMOs require planning permission to ensure neighbourhoods maintain a balance between family homes and shared accommodation.
In Salford, Article 4 only applies to specific areas, meaning that in some regions, small HMOs can still be established under permitted development rights without planning permission. It’s essential to check with the local council to determine whether your property is affected by an Article 4 Direction.
Conservation Areas and HMO Restrictions
If your property is in a conservation area, additional restrictions may apply when converting it into an HMO. Conservation areas are designated to protect the architectural or historical character of a neighbourhood, and councils may require planning permission to make changes, including converting a property into an HMO. The goal is to prevent changes that could negatively impact the appearance and character of these areas.
Greater Manchester HMO Licencing & Planning Requirements
Where available, click on the links below to go to the relevant council website
| Borough | Article 4 | Additional HMO Licensing |
|---|---|---|
| Bolton | No | No |
| Bury | No | No |
| Manchester | Yes* | No |
| Oldham | No | No |
| Rochdale | No | No |
| Salford | Partial | Yes |
| Stockport | Partial | No |
| Tameside | No | No |
| Trafford | Yes | No |
| Wigan | Partial | No |
*MCC has a policy of refusing any planning applications for HMO conversions
Disclaimer: The information in this table is correct as of October 2024 – please check with your local council for current licensing and planning regulations.
The Importance of Compliance
Understanding the requirements for HMO licensing and planning permission is crucial, as non-compliance can lead to significant penalties. Councils have the power to issue fines of up to £30,000 per offence for unlicensed HMOs, or in some cases, take legal action resulting in unlimited fines. In severe situations, landlords may face criminal prosecution, and tenants can apply for Rent Repayment Orders, reclaiming up to 12 months’ rent.
Additionally, failing to obtain planning permission where required could result in enforcement action. Councils may issue enforcement notices requiring the property to revert to its original use, which can be costly. This is especially risky in areas where Article 4 Directions apply, as many landlords mistakenly assume they can operate under permitted development rights.
What Should Landlords Do?
To avoid penalties and legal issues, landlords must ensure they are fully compliant with both licensing and planning regulations. Here are some steps to take:
- Check local council requirements: Confirm whether your area has additional or selective licensing schemes, and whether your property is affected by an Article 4 Direction.
- Apply for an HMO licence: If your property meets the criteria for licensing, apply as early as possible to avoid fines.
- Seek planning permission if necessary: Even if you have an HMO licence, you may still need planning permission, particularly in areas with Article 4 restrictions or conservation areas. We would always recommend engaging with a Planning Consultant or Architect.
- Maintain compliance: Regularly check for changes in local regulations and ensure your property continues to meet safety and management standards.
For landlords looking to convert properties into HMOs or ensure they are meeting current regulations, working with experts like Confidence Property can help navigate the complexities of licensing and planning.
