Photo by Colony Living

For HMO investors, the planning stage can determine whether you can convert a property to a HMO or undertake specific renovations. While planning permission is often viewed as a procedural step, it’s actually one of the most critical phases of any development. 

Many otherwise promising schemes stall or fail because of avoidable mistakes or due to investors not considering or understanding certain things about planning permission from the outset.

To ensure you get this right, here we’ll cover what you need to know about planning permission for HMOs, including the different types of permissions, an update on the planning system and advice on how to navigate the planning process!

3 Types of Planning Permission

Permitted Development Rights

For starters, Permitted Development Rights allow property owners and developers to carry out certain building works, improvements or changes of use without needing full planning permission. This can include small extensions, loft conversions and converting properties for the use of multiple occupation.

This is like a fast-track route… If your proposal meets the rules and your location allows this type of development or change of use, you can often skey the delays, headaches and objections that often come with planning.

When it comes to change of use in particular, Commercial to Residential (Class MA) is considered one of the most investor-friendly routes. This allows many commercial buildings, offices, shops, gyms and more to be transformed into residential units.

However, keep in mind that Permitted Development Rights are not universal across the country. They can vary depending on location, property type, and the specific conversion or development you’re proposing. 

Prior Approval

As the middle ground between permitted development and full planning, prior approval could involve slightly larger extensions. This would still require approval from the local authority and has an application process that takes 42 days, which is much quicker than a full planning application.

It also costs less and generally faces less scrutiny from the planning office. You’ll need to submit drawings, provide adequate transport, noise and light conditions and meet fire safety and space standards.

Full Planning Application

Other renovation work and changes of use require full planning permission. When it comes to full planning applications, you’ll typically have to wait between 8 and 12 weeks. These can be contentious and take longer than expected.

Local planning authorities (LPAs) can also remove or restrict Permitted Developments Rights through Article 4 directions. This means specific types of PD rights will be removed, and the work will then require full planning permission. 

This has been done in areas across the country to remove the permitted development for certain things, such as the right to convert a house into a HMO. The LPA will then consider applications and decide whether or not to grant permission on a case-by-case basis.

Gaining planning permission in an Article 4 direction can still be possible, but you’ll need to construct a really robust case for why the development should be allowed and demonstrate that it won’t detriment the area’s local character. Article 4 directions will likely tighten even further moving forward, so there’s something you need to be aware of before investing!

Understanding the Planning System

You might be aware of this through your own first-hand experience or hearing about others’ experiences, but there are huge problems with the planning system! It really needs a full overhaul, and for HMO investors, it can be even more difficult. 

There are a range of challenges when it comes to going through the planning process, but some of the biggest ones you’ll face are planning delays, anti-HMO sentiment, application costs and risks.

Delays

Planning often takes as long as the local authority likes. There are of course statutory timeframes they’re supposed to meet for decisions. However, they often don’t meet these and request an extension. And sometimes if we don’t approve, they’ll just flat out reject the application!

Additionally, HMO investors trying to convert a property into a HMO often will face many rejections from planning officers, consultants, committee members and neighbours, so it can be a really slow grind working though all of these.

Anti-HMO Sentiment

Generally, people don’t like the idea of HMOs… This is typically misconstrued or an anti-student mentality. It’s not only neighbours; it’s also political sentiment. I’ve seen in many places, especially in certain cities, there’s a stereotype that HMO tenants are messy and cause more noise.

While we won’t be able to change the opinion of the people who think like this, be aware that this anti-HMO sentiment exists. Because of all this, many decisions can boil down to local politics and not actual planning law!

There is of course a framework that if you follow, you should get a decision based on that. However, it can have a lot of grey areas and not be based on logic. Some local authorities are known for putting their own spin on certain policies and how they interpret the framework to fit their own agenda. So, make sure you’re aware of this, especially in areas with Article 4 directions if you’re changing use from C3 to C4.

Costs & Risks

The associated costs of planning applications due to the direct impact on timelines is significant. This is extremely difficult to manage because so much of the planning process is out of your control. Understand the risks that come with this and that you can follow the rules and still get nowhere!

Because of this, having contingencies in place is absolutely crucial. If you’re considering purchasing a property with planning permission, think about what’ll happen if you can’t secure this or don’t get the exact permissions that you want.

8 Tips for Navigating the Planning Process

While there are many things to be aware of when it comes to navigating the planning process, there are some things you can do to increase your chances of success with your HMO investments!

• Do Your Own Due Diligence

One of the most common mistakes investors and developers make is not fully understanding the local authority’s planning policies before submitting an application or making decisions about purchasing a property. Each council has its own Local Plan, which outlines priorities regarding housing density, building heights, sustainability targets and design requirements.

Submitting a proposal that is in conflict with any of these policies can significantly increase the likelihood of being refused. Instead, you should review local planning documents carefully and ensure their scheme aligns with the council’s long-term development strategy. 

Also keep in mind that licensing and planning departments in your local council often do not communicate, so don’t assume that having a HMO licence means you have or don’t need planning permission. 

• Become an Expert on PD Rights & Prior Approval

It’s helpful to understand the ins and outs of Permitted Development Rights. They are not universal, varying based on property type, location and the specific development you’re proposing. But there are some key opportunities for investors when it comes to PD rights.

There is the opportunity of faster approval through Prior Approval rather than full planning and provides the ability to unlock undervalued commercial sites and the potential for higher yields through residential use. However, minimum space standards and natural light rules still apply, so due diligence is always essential.

PD rights allow investors to add significant space to residential properties through rear extensions, loft conversions, single-storey side extensions and even two-storey rear additions in some cases. These upgrades often deliver excellent return on investment, especially in areas where buyers and tenants value extra internal space!

However, even the strongest PD strategy has limits. Keep in mind that you can’t rely on PD Rights in conservation areas, national parks, Areas of Outstanding Natural Beauty, listed buildings and some Article 4 Direction zones (where councils restrict PD rights). Before making investment decisions, always check whether the property falls under any of these restrictions.

• Consider Getting Pre-App Advice

Many councils offer a pre-application advice service, but investors sometimes skip this step in an effort to save time or fees. However, this can be a costly oversight. Pre-app discussions allow planners to highlight concerns, recommend changes and clarify expectations before a formal application is submitted. 

This feedback can significantly improve the chances of approval and reduce delays caused by revisions later in the process. While pre-application advice naturally doesn’t guarantee approval, it provides valuable insight into how a proposal is likely to be received.

• Prioritise Good Design

Planning authorities place strong emphasis on how new developments should fit within their surroundings. Schemes that ignore local character, scale or urban context often face resistance.

For example, proposals that fail to respect established street patterns may struggle to gain approval or that are significantly taller than neighbouring buildings. Good architecture and thoughtful site planning are not just aesthetic considerations, they are key factors in planning success!

• Don’t Underestimate Technical Requirements for Full Planning

Nowadays planning applications require far more than just layouts and drawings… Depending on the project, you may need to submit a range of supporting reports, such as transport assessments, heritage statements, daylight and sunlight studies, drainage strategies and ecological surveys.

Failing to provide any necessary documentation can delay validation or even lead to rejection. Investors should identify required reports early on in the process to ensure all technical information is properly prepared prior to submission.

• Have a Back-Up Plan

Buying a property without planning permission can feel risky, particularly when your strategy relies on a certain configuration or exit. Not having the right planning in place can create uncertainty, but buying a property without planning permission doesn’t always mean walking away from the deal. 

With the right structure, a strong back-up option and the correct funding strategy, it can still be a viable and even profitable move. There are several possible approaches when a property doesn’t have the right planning permission for your plans, and while some are easier to navigate than others, there are solutions available.

With a change of use that requires planning, ensure the property could work without being granted that. If the property is in an Article 4 area, the back-up plan would need to be as a single let or holiday let, so that no planning is required. The key is ensuring that you’re genuinely comfortable with the alternative. If you’re not, you’ll want more certainty before proceeding with the purchase.

• Communicate Clearly with Key Stakeholders

Local planning officers, councillors and residents all play a role in the planning process. Ignoring community concerns or failing to communicate clearly can lead to objections that slow down or fully derail an application.

Engaging with neighbours and key stakeholders early can help address concerns before they escalate. In many cases, small adjustments to a design can reduce opposition and improve the overall outcome.

• Work with the Right Professionals

Working with a good planning consultant and architect who has experience of similar prospects to yours is highly recommended to navigate the challenges of the planning system. Applications involving HMOs can be very contentious, so it’s recommended to get the help of an experienced planning consultant and architect.

Engaging a planning consultant early can also help identify potential obstacles before they become costly problems, while working with experienced architects who understand planning constraints can help ensure the design supports, rather than undermines, the application.

Prepare for the Planning Process

Planning permission is rarely just a formality. Successful developments depend on careful preparation, thoughtful design and a clear understanding of local planning requirements.

By researching local policies, seeking pre-application advice, prioritising good design, preparing the necessary technical reports, engaging with stakeholders early and working with the right professionals, HMO investors can dramatically improve their chances of planning success.

In an increasingly complex planning environment, make sure you are fully prepared for this process. To learn more about how to start, scale and systemise your HMO business, including how to find, fund, refurb and manage HMOs, become a member of The HMO Roadmap today!

About the Author:

Andy Graham is the founder and the lead trainer at The HMO Roadmap! He writes as a regular columnist in different magazines about a variety of HMO topics and is the host of The HMO Podcast! Follow Andy on Instagram!