For immediate release: A leading property expert shared his advice on how landlords specialising in HMOs can best prepare for changes to planning restrictions
With demand for affordable rental housing continuing to surge across UK cities, landlords face a new set of planning challenges.
Recent reports reveal that councils are increasingly turning to “planning tactics”, particularly Article 4 Directions, to restrict the growth of Houses in Multiple Occupation (HMOs).
Mish Liyanage, founder of Mistoria Estate Agents, explained: “For landlords and property investors, this is both a red flag and a reminder to act strategically.
“Local authorities such as Bolton, Salford, Liverpool, Leicester, Coventry, and parts of London are implementing stricter planning controls to curb what they describe as “over concentrations” of HMOs in certain areas.
“By deploying Article 4 Directions, councils can require landlords to obtain planning permission before converting a family home into an HMO, even for small-scale conversions that would normally fall under permitted development rights.
While these policies aim to protect community balance and housing diversity, they also present serious challenges for landlords, especially those operating in Manchester, and Liverpool.”
Mr Liyanage says that for landlords working in areas like Salford, Liverpool and Bolton, which already have selective and additional licensing zones, the imposition of planning restrictions adds another regulatory hurdle.
In November 2024, Salford landlords were given a strict deadline to obtain additional HMO licences in Langworthy, Weaste, and Seedley. Missing this deadline can lead to substantial fines, legal action, or worse, being forced to evict tenants.
Now, with planning restrictions layered on top of licensing frameworks, landlords could face a dual barrier: needing both a licence and planning permission to operate legally.
Mr Liyanage continued: “This clampdown may discourage new HMO developments, reduce supply, and drive up competition for already-scarce licensed properties. While this could lead to higher rents due to demand, it also increases the risk of non-compliance, delays in conversion timelines, and greater scrutiny from councils.
Moreover, it comes at a time when many landlords are already grappling with reforms under the Renters’ Rights Bill, including the abolition of Section 21, stricter rent controls, and mandatory property standards.”
Here Mr Liyanage offers his guidance on how to best navigate the HMO regulatory maze
Check Local Planning Policies: Before purchasing or converting any property into an HMO, check if Article 4 applies in that area.
Apply for Licences Promptly: Stay ahead of deadlines and keep your HMO licence current.
Maintain Compliance: Ensure your property meets fire safety, space, and amenity standards—even if you haven’t converted it yet.
Seek Expert Guidance: Work with estate agents who understand local licensing and planning policies. At Mistoria, our deep local knowledge helps landlords avoid costly pitfalls.
Mr Liyanage concluded: “The rise of Article 4 Directions and tighter planning controls is not a passing trend, it’s a structural shift in how councils are managing local housing markets. For landlords, this means adapting business models, reviewing portfolios, and staying agile in a rapidly changing regulatory landscape.”
