Knowsley Council introduces Article 4 Direction to restrict small HMOs

Knowsley Council introduces Article 4 Direction to restrict small HMOs

Knowsley Council has implemented an Article 4 Direction requiring planning permission for converting family homes into small Houses in Multiple Occupation (HMOs). This change affects landlords seeking to create HMOs for up to six occupants.

Knowsley Council has approved new planning regulations aimed at controlling the conversion of family homes into small HMOs, defined as properties housing up to six unrelated individuals. The Article 4 Direction removes the previous automatic right, in place since 2010, that allowed landlords to convert homes into small HMOs without planning permission. Once the legal process is complete and the Secretary of State confirms the direction, landlords will need to apply for planning permission before converting properties into small HMOs across the borough.

The council emphasises that this is not a blanket ban on HMOs but a measure to manage their concentration in specific areas. The council has expressed concerns about the negative impact of high HMO densities, including increased traffic, waste, property neglect, and pest issues. The new rules will come into effect immediately after the legal notice is published, followed by a 21-day public consultation period.

Details of Knowsley’s Article 4 Direction on HMOs

Since 2010, landlords in Knowsley have been able to convert family homes into small HMOs without seeking planning permission. This permitted development right allowed up to six tenants to occupy a property without the need for local authority approval. The new Article 4 Direction revokes this automatic right borough-wide, meaning any landlord wishing to convert a property into a small HMO must now submit a planning application and obtain approval.

The council’s rationale is to prevent the “inappropriate conversion” of family homes into HMOs, which can affect the character and amenity of local areas. The council spokesperson highlighted issues arising when HMOs cluster in one area, such as increased vehicle parking pressure, waste accumulation, and poorly maintained properties and gardens. These conditions can lead to a decline in neighbourhood quality and attract vermin, negatively impacting residents’ quality of life.

Knowsley Council has stated that it recognises the role HMOs play in providing affordable accommodation and supporting those at risk of homelessness. However, the council seeks to balance this with maintaining a diverse housing mix and protecting local communities from the adverse effects of high HMO concentrations.

Context and implications for landlords and letting agents

The use of Article 4 Directions to control HMOs has become more common in recent years as local authorities respond to concerns about the impact of HMOs on communities. Article 4 Directions remove permitted development rights, requiring landlords to seek planning permission for changes that were previously automatic. This adds an additional regulatory hurdle and can delay or prevent conversions.

For landlords and letting agents operating in Knowsley, this change means that any plans to convert family homes into small HMOs must now factor in the planning application process. This includes preparing detailed proposals, potentially engaging with planning consultants, and allowing for the time and cost associated with obtaining permission. Failure to secure planning permission before conversion could lead to enforcement action, including fines and orders to revert the property to its original use.

Letting agents will need to advise clients accordingly and ensure that any marketing or letting of new HMOs complies with the updated planning requirements. The change may also affect investment decisions, as the increased regulatory burden could impact the viability of HMO conversions.

What remains uncertain and areas to monitor

The Article 4 Direction requires confirmation by the Secretary of State following the public consultation. While the council expects this to proceed, the consultation could generate objections or requests for modifications. Landlords should monitor the consultation outcomes and any guidance issued by the council regarding the application process.

It is also unclear how the council will approach planning applications for HMOs under the new regime. The criteria and policies that will guide approval or refusal decisions have yet to be fully detailed. Landlords should review local planning policies and seek professional advice to understand the likelihood of obtaining permission for specific properties.

Additionally, the council’s enforcement approach towards unpermitted HMOs will be important to watch. Proactive enforcement could lead to increased scrutiny of existing HMOs and retrospective action where conversions have occurred without permission.

Practical steps landlords should consider now

• Review any current or planned HMO conversions in Knowsley to ensure compliance with the new Article 4 Direction.
• Check the timing of the legal notice publication and public consultation to understand when the new rules come into effect.
• Engage with planning professionals to prepare for the application process if converting properties into small HMOs.
• Maintain clear records of property use and any planning permissions to demonstrate compliance if challenged.
• Advise tenants and prospective tenants transparently about the status of planning permissions and any potential impact on tenancy arrangements.
• Monitor local authority communications for updates on enforcement and guidance related to HMOs.

Keeping your rental properties compliant with planning changes

Membership of The Landlord Association (TLA) offers access to detailed compliance resources and practical guidance on navigating planning regulations affecting HMOs. TLA’s developing property management platform, ORBIT, currently in BETA testing, is designed to help landlords and letting agents organise property records, including planning documentation and communications with local authorities. This can be invaluable in managing the additional administrative requirements introduced by Article 4 Directions.

Through TLA membership, landlords can stay informed about evolving planning policies and enforcement trends, helping to reduce risks associated with unauthorised property conversions. Access to expert advice and document templates also supports landlords in preparing robust planning applications and maintaining evidence of compliance. Exploring TLA’s member compliance support and ORBIT BETA access can assist landlords in adapting to these regulatory changes effectively.

Looking ahead, landlords in Knowsley and other areas subject to Article 4 Directions should anticipate more stringent controls on HMOs. Staying proactive in understanding and meeting planning obligations will be essential to maintaining viable rental portfolios and avoiding enforcement penalties.

Sources: Landlord Today