The document outlines the implications of Article 4 Directions (A4D) in Nottingham, which removes general permitted development rights, requiring planning permission for converting family homes into houses in multiple occupation (HMOs). Introduced to prevent community imbalances and associated issues like noise and anti-social behavior, A4Ds have faced opposition from landlords and organizations, citing bureaucratic hurdles and the need for more shared housing options. The document also highlights the financial effects on landlords, the impact on housing markets, and the potential for further licensing regulations in the future.

1. Article 4 Direction -
Background
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• Rugg Review 2008
 Changing planning legislation was not appropriate
• April 2010
 Creation of the ‘C4’ or HMO Use Class
 All new HMOs needed planning permission
• October 2010
 Incorporation of ‘C4’ within the General Permitted Development Rights
 Properties could move from a ‘Dwelling House’ to an ‘HMO’ without
planning permission
 KEY: Local Authorities could still insist on planning
permission through Article 4 Directions
• House in Multiple Occupation (HMO):
 Three or more unrelated sharers
 Comprising two or more households
 Shared Facilities

2. What is an Article 4 Direction
• Removes General Permitted Development Rights
 Used to be for conservation purposes
 Can now be used for restricting the number of new HMOs
 In a given geographical area
• What is it designed to do
 To stop noise, anti-social behaviour, rubbish accumulation, parking
problems, (attract visitors, attract investors, improve HMO standards)
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• Cost Implications
 Planning applications are free (take 8-12 weeks)
 12-months notice or compensation
 New planning application each time you change from a family to sharers

3. Article 4 Direction (A4D) –
summary
• A landlord has the right to convert a family dwelling (C3) to an HMO
(C4) within their General Permitted Development Rights
• An article 4 direction removes this Permitted Development Right
 Planning permission required from local council
• A4D come into force Notts on 11th March 2012
 Strong opposition from NLA, RLA, EMPO, LLs, Students
 Planning permission required to convert a family dwelling
(or standard rental unit) to an HMO (3-6 unrelated people)
 Planning permission has always been required for >6 occupants
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4. Article 4 Direction in
Nottingham
• Covers the whole of the Nottingham City Council area
• NCC wants to maintain balanced communities & preserve diverse
communities to create better neighbourhoods
Manage and control HMO growth – high concentrations of
HMOs can lead to imbalanced communities
Backlash against (student) HMOs is due to complaints from
residents groups that students are causing problems and
driving house prices down!!
Residents believe “A4D would put the interest of existing
residents ahead of commercial interests of landlords”
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5. Article 4 Direction in
Nottingham – Boundary map
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6. Article 4 Direction in Practice
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3-6 students
- HMO
- Investor can buy/rent
- No A4D impact
- HMO value increases
Student Street
Residential dwelling
- won’t be able to sell
- family or investor!!
- prices plummet??

7. A4D – “more balanced”
communities
• LAs are using A4Ds to “shape” its view on society to create more
balanced communities & prevent freedom of choice
• More/less welsh, scottish, migrants, students, gay, older, younger, rich??
• Form of social engineering (why restrict to students??)
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8. Shared housing – only option ?
• Shared housing is a viable option for FTBs
to get on the housing ladder
 3 households
Single, 2 couples
1 couple moved from expensive flat
1 couple decided to share to save money
 Both couples saving for deposit!!
• Local housing allowance (LHA)
• Under 35’s get single room rate
• Effective January 2012
• Options for under 35’s: parental home, HMOs
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9. A4 Direction Scenarios
Planning Permission
Buy a family home or
standard rental property
Rent out as HMO YES
Buy an existing HMO Rent out as HMO NO
Leave
empty
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required ?
Buy an existing HMO Re-Let as HMO NO
Buy or have an HMO Rent to Re-Let as HMO YES
2 people
Buy or have an HMO No longer ?
an HMO
1 person
leaves
Evaluate the planning regulations carefully!!

10. Opposition to Article 4
Directions
• Opposition to Article 4 Directions:
 Limits landlord’s legitimate rights over their properties
 Overly bureaucratic
 Wrong decision at a time when we need more shared housing, not less.
• The planning system is never going to:
 Improve standards
 Root out rogue landlords
 Increase professionalism in the sector
• Resource implications
 Local authorities are cash-strapped
 Article 4 Directions waste resources
 Money should be spent targeting rogue landlords
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11. Spread of Article 4 Direction
Approved/coming into force
Ashford, Barking and Dagenham, Basingstoke and Deane, Bexhill–on–Sea,
Bournemouth, Bristol, Canterbury, Durham, Exeter, Hastings, Leeds,
Loughborough, Manchester, Milton Keynes, Newcastle, Northampton,
Nottingham, Oxford, Ormskirk, Plymouth, Portsmouth, Preston
Sheffield, Southampton, Thanet, Warwick, Welwyn Hatfield, York
Recently Consulted/consulting/considering
London Borough of Hillingdon, Brighton & Hove, Chichester, Hull
London Borough of Redbridge, London Borough of Newham
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12. A4D impact on landlords:
what next?
• Limiting your ability to increase your portfolio?
 Only buy pre-existing HMOs
 Buy on condition that planning permission is 1st obtained
 Buy in a non-A4D affected areas eg different city
 Difficult if you are self-managing
 Research the demand carefully!!
• What will be next hurdles for the HMO/All landlords?
Future licencing
 Mandatory licence for 5 sharers/3-storey property
 Additional licencing may be next (ie all HMOs)
 Selective licencing for all rental properties?
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