Understanding Derby's New Article 4 Direction for HMOs: What Property Owners Need to Know

Significant Changes Coming for Derby Property Owners

If you own or are looking to invest in Houses in Multiple Occupation (HMOs) in Derby, there are significant changes on the horizon that you need to be aware of. Derby City Council (DCC) is introducing a new Article 4 Direction that will affect how HMOs are regulated within designated city centre areas.

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What is the Article 4 Direction?

The new Article 4 Direction is under public consultation and expected to be implemented as early as May 3rd, 2025. This directive will remove Permitted Development Rights for HMOs within specific areas of Derby City Centre.

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Why is this happening?

The council's primary concern is the high concentration of HMOs in certain areas, which they believe is:

• Creating an imbalance in housing types

• Putting pressure on local resources

• Causing issues such as limited parking

• Creating bin storage problems

• Contributing to overcrowding

• Potentially increasing antisocial behaviour

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How Will This Affect Property Owners?

Once the Article 4 Direction is implemented, all HMOs in the designated area will require a full planning application - regardless of size. This includes smaller 6-person HMOs that previously benefited from permitted development rights.

The success of planning applications may be influenced by the existing concentration of HMOs in the immediate vicinity, with areas already saturated with HMOs potentially facing more scrutiny.

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Understanding HMO Classifications

6-Person HMOs (C4 Use Class)

Currently, 6-person HMOs benefit from standard permitted development rights, allowing modifications like rear dormers and small extensions without planning permission. However, this will change once the Article 4 Direction comes into force.

If you're unsure whether your property falls into this category, Derby City Council recommends submitting a Lawful Development Certificate (LDC) - Proposed Use application, which:

• Costs £199 (including VAT)

• Takes approximately 8 weeks to process

• Requires minimal documentation (site plans, floor layouts)

• Is a straightforward administrative procedure not affected by neighbour comments

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Larger HMOs (7+ Persons - Sui Generis Use Class)

Larger HMOs housing seven or more people fall under the Sui Generis use class.

This will typically take 8 weeks to process and cost £199 (including VAT)

An LDC Proposed Use Application requires the following minimum information: •

• OS Site Location Layout

• Existing Floor Layout

• Existing Site Layout

• Proposed Floor Layout (if anything is being altered/extending)

• Proposed Site Layout (if anything is being altered/extending)

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Conversion into a Larger HMO of 7+ persons (Sui Generis Use Class)

For these properties:

• Any external works or conversion to this category requires a full planning application

• Applications start at £648 (including VAT)

• Processing time is 8-10 weeks

• More extensive documentation is required

• External consultees like Highways Department and Environmental Health will be involved

• Neighbour impact factors will be considered

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Documentation Requirements for Lawful Development Certificate Applications:

• OS Site Location Layout

• Existing Floor Layout

• Existing Elevations

• Existing Site Layout

• Proposed Floor Layout

• Proposed Site Layout

• Proposed Elevations

• Design & Access Statement

• Potentially additional reports (soil investigations, heritage assessments, ecology reports, etc.)

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Next Steps for Property Owners

If you own or are considering purchasing a property in the affected area, you should:

• Check the Article 4 Direction map to see if your property falls within the designated area

• Consider applying for a Lawful Development Certificate if you're uncertain about your property's classification

• Review the council's space standards to ensure compliance

• Budget for potential planning application costs if you're planning any modifications

• Ensure you have the appropriate HMO license if required

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Stay Informed

This post contains information based on discussions with Planning Officer Isabel Bancroft of Derby City Council's Planning Department in September 2024. As regulations and procedures can change, it's advisable to check the latest information from Derby City Council before making any decisions.

For more information, visit the Derby City Council website or contact their planning department directly.