This piece from Landlord Licensing & Defence
Bolton Council has sent shockwaves through the HMO development sector by implementing an immediate Article 4 Direction in Horwich, effective June 2025.
The implementation comes with no prior warning, no 12-month notice period and no grace period.
One critic says the move is not only unreasonable but also an abuse of the council’s powers.
Des Taylor, casework director at Landlord Licensing & Defence, warns that developer businesses are being jeopardised by the automatic right to convert family homes (C3) into Houses in Multiple Occupation (HMOs) for three to six occupants (C4), which require full planning permission for all such conversions, regardless of size.
The council’s decision follows a reported surge in HMOs, rising from approximately 170 to over 700 in recent years, many of which are accommodating asylum seekers under the government’s “Operation Scatter” scheme.
Taylor says that while there might be a case for HMO numbers to be restricted, the council has no case to impose an emergency action without due notice, especially one that puts HMO landlords and developers at risk since they potentially face severe financial losses due to the government’s immigration policy. If anything, he warns, councils should consider compensation schemes for their unreasonable actions.
Local residents have voiced concerns over overcrowding, noise, anti-social behaviour and declining property values, with some estate agents advising buyers to avoid entire streets.
The mounting political pressure was the council’s flimsy excuse for its outrageous action.
Typically, councils provide a year’s notice to allow developers and investors to adjust their plans, so they don’t incur huge financial losses, but Bolton has bypassed this convention.
Taylor points out that a ‘back to brick’ house to HMO conversion typically costs £200,000-£250,000. Most of which will have to be written off for each HMO that was being developed under the understanding it had Permitted Development – now the council has pulled this rug from under the landlord/developer.
Taylor warns: “This sets a dangerous precedent. Councils are increasingly making abrupt policy changes that disrupt developers’ plans, with little regard for financial commitments made under existing rules.
“Other local authorities may now feel emboldened to follow suit.”
Neighbouring boroughs, including Bury, Wigan, Salford, Manchester and Chorley, may view Bolton’s move as a signal to impose similar immediate restrictions, particularly where housing pressures and resident opposition meet.
Developers now face a complex legal landscape, navigating planning law, licensing regimes and building control. Non-compliance risks enforcement action or costly Rent Repayment Orders.
Taylor says: “Developers operating in areas where HMO saturation is under discussion must act proactively. That means seeking professional advice before purchasing, converting or submitting HMO applications.
“Getting planning, licensing and building control right from the outset is the difference between a profitable project and a financial disaster.”
Landlord Licensing & Defence has supported hundreds of landlords and developers in navigating compliance challenges and defending against enforcement actions. The firm has saved private rental sector landlords and agents millions in rent repayments and civil penalty fines.
Taylor emphasises: “The rules can change overnight – sometimes literally. Without compliance built into your plan from day one, your investment could become a liability.”
