Introduction
If you’re exploring HMO property investment in England, one phrase you’ll encounter again and again is Article 4 Direction. For landlords and developers, Article 4 can significantly affect whether you can convert a standard residential property into a House in Multiple Occupation (HMO) without full planning permission.
In simple terms, areas without Article 4 HMO restrictions offer greater flexibility, faster project turnaround, and lower upfront planning risk. That’s why savvy investors constantly research which towns and cities in England still allow permitted development rights for small HMOs (Use Class C4) without additional planning barriers.
While many major cities have introduced Article 4 in specific zones, there are still attractive locations across England where investors can benefit from strong rental demand without restrictive HMO planning controls. Below, we break down how Article 4 works, how to identify promising investment areas, and highlight examples of places where opportunities still exist.
Article 4 and thier Planning
An Article 4 Direction removes permitted development rights that would normally allow a property to change from a single dwelling (Use Class C3) to a small HMO (Use Class C4 for 3–6 occupants) without full planning permission.
For example, cities such as Manchester, Liverpool, and Nottingham have implemented Article 4 Directions in defined areas due to high concentrations of student HMOs. Similarly, parts of Birmingham and Leeds have introduced restrictions to manage housing balance.
Where Article 4 applies, investors must:
- Submit a full planning application for HMO conversion
- Pay additional planning fees
- Accept increased uncertainty and longer timelines
- Meet stricter local housing policies
In contrast, areas without Article 4 allow you to convert a property from C3 to C4 under permitted development (subject to licensing and building regulations). This reduces risk, speeds up refurbishment schedules, and improves return on investment.
For landlords seeking strong cash flow, avoiding Article 4 zones can mean the difference between a smooth 12-week project and a 9-month planning delay.
How to Identifying Areas for HMO Investments
The most profitable HMO locations typically combine:
- Strong tenant demand (students, young professionals, NHS staff)
- Affordable property purchase prices
- Solid rental yields (8%–15% gross in many northern towns)
- Good transport links and employment hubs
- Limited or no Article 4 restrictions
University towns, hospital catchment areas, and regeneration corridors often provide excellent HMO opportunities. However, investors must always check with the relevant local authority, as Article 4 can apply to specific wards rather than entire cities.
Emerging markets often outperform saturated city centres. Towns near major employment hubs but outside strict planning zones frequently offer:
- Lower entry prices
- Reduced competition
- Higher yield potential
- Simpler planning pathways
The key is combining local authority planning research with on-the-ground demand analysis.
Areas in England Without Article 4
While planning policies change, several areas in England currently offer significant HMO potential outside blanket Article 4 restrictions (always verify with the local council before purchase).
Doncaster
Doncaster has become increasingly popular with HMO investors. With relatively affordable property prices and strong tenant demand linked to logistics, rail, and distribution industries, Doncaster offers attractive yields. Large parts of the borough remain outside Article 4 controls, giving investors flexibility when converting family homes into professional HMOs.
Grimsby
Grimsby is another northern location gaining attention. Regeneration projects and renewable energy sector growth have boosted rental demand. Many areas do not operate Article 4 restrictions, making entry simpler for first-time HMO landlords seeking strong cash flow returns.
Hull
Kingston upon Hull continues to attract students and working professionals. While certain pockets may have selective controls, much of the city remains accessible for HMO conversion without Article 4 planning barriers. Investors benefit from low acquisition costs and strong rental yields.
Stoke-on-Trent
Stoke-on-Trent offers a strong student population and ongoing regeneration. Compared to major cities, it remains less restrictive in many zones. Affordable terraces and high tenant demand make it a strong contender for HMO portfolio growth.
Blackpool
Blackpool provides excellent opportunities for serviced accommodation and HMOs alike. While selective licensing may apply, broad Article 4 restrictions are not city-wide, offering planning flexibility in many neighbourhoods.
Final Thoughts for HMO Investors
Finding areas in England without Article 4 HMO restrictions can significantly increase your investment efficiency and profitability. Locations such as Doncaster, Grimsby, Hull, Stoke-on-Trent, and Blackpool demonstrate that strong yields and planning flexibility still exist outside heavily regulated city centres.
However, planning policies evolve. Before purchasing, always:
- Confirm Article 4 status directly with the local authority
- Review local HMO licensing requirements
- Assess saturation levels
- Analyse tenant demand and comparable rents
For investors seeking high-yield HMO investments in England, targeting non-Article 4 areas can provide a powerful competitive advantage—allowing you to scale faster, reduce planning risk, and maximise long-term rental income.
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