Quick answer
More councils in England now require planning permission to turn a family home into a small HMO. Warrington's Article 4 directions came into force on 25 September 2026, covering the whole borough. Ribble Valley's borough-wide direction took effect immediately on 28 August, and Burnley made a direction on 25 September for its six remaining wards, due to take effect on 27 September 2027 if confirmed. For investors, an HMO conversion in these areas now depends on planning, so check the rules before you buy and make sure your lender knows whether permission is needed.
What an Article 4 direction does
Normally, turning a house (use class C3) into a small HMO for three to six unrelated people (use class C4) is permitted development and needs no planning application. An Article 4 direction removes that right in a defined area, so the change needs full planning permission. Larger HMOs, for seven or more people, already need permission everywhere. A direction does not ban HMOs: each application is decided on its merits, usually against the council's policies on how many HMOs a street or area can take.
Our guide to permitted development explains how these rights work, and our planning report covers the wider changes to the planning system this year.
Which councils have moved this autumn
- Warrington: two directions came into force on 25 September 2026. One covers six central wards (Orford, Poplars and Hulme, Fairfield and Howley, Latchford East, Latchford West, and Bewsey and Whitecross) after a 12-month notice period. The second covers the rest of the borough with immediate effect, and is open for comments until 19 October before the council decides whether to confirm it. Source: Warrington Borough Council.
- Ribble Valley: a borough-wide direction was approved on 27 August and came into force immediately on 28 August 2026. Source: Ribble Valley Borough Council.
- Burnley: a direction for the six wards not already covered was made on 25 September 2026, with consultation until 6 November. If confirmed, it takes effect on 27 September 2027, giving borough-wide control. Source: Planning Geek.
- Coming up: Newcastle-under-Lyme is due to consider a borough-wide direction on 20 October, and Luton is commissioning evidence for a possible direction.
Warrington's cabinet member, Cllr John Kerr-Brown, said requiring permission "means we can carefully consider their impact before decisions are made".
Why it matters when you buy
An immediate direction can change the rules between viewing a house and completing on it. Before you commit to an HMO conversion:
- Check the council's Article 4 map and its HMO policy, including any limits on how many HMOs are allowed nearby.
- Check whether an existing HMO is lawful. A house already used as a small HMO before a direction took effect can usually carry on, but you may need evidence, such as a lawful development certificate.
- Check licensing too. Planning and licensing are separate. An HMO with five or more people from more than one household needs a mandatory licence, and some councils license smaller ones.
Demand for rooms remains strong. Zoopla's September report found rental supply fell for the first time in three years, with enquiries per listing up 6% on a year earlier, as reported by The Negotiator. But in Article 4 areas, the value of a house as an HMO depends on having permission to use it as one.
What it means for HMO finance
Lenders want to know the use is lawful. If a conversion needs planning, most will lend on the house as it is, and only on the HMO value once permission is granted and the works are done. Some options:
- Buying an existing, lawful HMO: HMO bridging loans can fund the purchase and any works to meet licensing standards.
- Converting with planning: structural work, fire safety and extra bathrooms usually mean heavy refurbishment finance.
- Buying before permission: some lenders fund purchases where planning is still to come. See planning gain bridging.
- The exit: most HMO bridges are repaid by an HMO mortgage. A bridge-to-let agrees that route at the start. See refinancing a bridge onto a mortgage.
Our guide to light vs heavy refurbishment explains how lenders classify the works, and Instant Quotes shows which lenders on our panel fit your HMO purchase or conversion.
Common questions
Do I need planning permission for a small HMO?
Not usually, unless the council has an Article 4 direction for the area. Where one applies, changing a house into a small HMO for three to six people needs full planning permission.
Which councils brought in HMO Article 4 directions this autumn?
Ribble Valley from 28 August 2026 and Warrington from 25 September 2026. Burnley made a direction for its remaining wards on 25 September, due to take effect in September 2027 if confirmed.
Does an Article 4 direction stop existing HMOs?
No. An HMO already in lawful use before the direction took effect can usually continue. A direction affects new conversions.
Can I get a bridging loan for an HMO conversion?
Yes. Lenders on our panel fund HMO purchases and conversions, but where planning is needed most will lend on the current value until permission is granted.
This article reports news and published figures as at 13 October 2026. It is for general information only and is not legal, tax or financial advice. Bridge & Build Finance is a commercial finance brokerage service, not a lender. Finance is subject to status, lender criteria, valuation, underwriting and approval.
