The number of planning applications for Houses in Multiple Occupation (HMOs) refused by 144 English councils more than doubled from 590 in 2021 to 1,203 in 2025. This represents an increase of 613 refused applications over the four-year period.
During the same timeframe, the total number of HMO applications decided by these councils also saw a sharp rise, from 1,848 to 3,454. Consequently, the approval rate for HMO applications decreased from 68.1% in 2021 to 65.2% in 2025.
The use of Article 4 Directions, which remove permitted development rights for converting a C3 dwelling into a small C4 HMO, is making it more difficult to secure permission in some areas. These directions, intended to address local problems, are increasingly applied across large areas, sometimes covering entire towns or boroughs.
For landlords, planning due diligence has become a crucial part of commercial appraisal. Before agreeing a purchase price, buyers need to verify if a property is in an Article 4 area, if a new direction is proposed, and the council's local HMO policies. Establishing the property's current lawful planning use is also important, as a licence does not equate to planning permission.