Houses in multiple occupation (HMO) Article 4 Direction

What is an Article 4 Direction?

Effective from 1 May 2026

Hinckley and Bosworth Borough Council has introduced an Article 4 Direction covering a defined area of Hinckley town centre and nearby streets. This page explains what that means, why it has been introduced, and what it means for residents, landlords and future development.

What is an Article 4 Direction?

An Article 4 Direction is a planning tool that allows a council to remove specific national permitted development rights in a defined area.

Usually, planning permission is not required to change a house (Use Class C3) into a small house in multiple occupation (HMO) for up to six people (Use Class C4). This is allowed automatically under national planning rules.

From 1 May, the Article 4 Direction means that planning permission is now required to create a new small HMO within the defined area.

The Article 4 Direction:

  • Does not ban HMOs
  • Does not force existing HMOs to close
  • Does not affect large HMOs (which already require planning permission)
  • Allows the council to assess each proposal on its individual merits

This approach is widely used by councils to manage the location of HMOs, rather than prevent them.

What is a house in multiple occupation (HMO)?

A house in multiple occupation (HMO) is a property where three or more people, who are not all part of the same household share facilities, such as a kitchen, bathroom or toilet.

HMOs provide important housing for a range of people, including young professionals, students, and those who need smaller or more affordable homes.

However, where HMOs become highly concentrated in certain streets, councils can see impacts such as:

  • Changes to the balance of housing in an area
  • Increased pressure on parking and local services
  • Reduced availability of family housing
  • Changes to the character of residential neighbourhoods

Best practice nationally shows that managing concentrations rather than individual properties leads to more balanced and sustainable communities.

Why has the council introduced this Article 4 Direction?

The council has received ongoing concerns from residents, ward councillors and community groups about the growing concentration of HMOs in parts of Hinckley town centre and surrounding residential streets.

Under national planning rules, the council previously had very limited control over where new small HMOs could be located.

The Article 4 Direction gives the council the ability to:

  • Consider the cumulative impact of HMOs on a street or neighbourhood
  • Assess whether an area already has a high concentration of HMOs
  • Apply local planning policies consistently
  • Make balanced decisions that consider housing need, amenity and neighbourhood character

The intention is not to discourage good quality HMOs, but to ensure they are provided in the right locations and at a level that communities can sustain.

Streets covered by the Article 4 Direction

The Direction covers both sides of the streets listed, unless stated otherwise:

  • Albert Road
  • Alma Road
  • Baines Lane
  • Baptist Walk
  • Castle Street (north side)
  • Clarence Road
  • Council Road (north side)
  • Dares Walk
  • Davenport Terrace
  • Derby Road (west side)
  • Druid Street
  • Factory Road
  • Friary Close
  • Gladstone Terrace
  • Hollycroft (north side)
  • Holliers Walk
  • King Street
  • Langham Close
  • Leicester Road (south side)
  • London Road (south side)
  • Middlefield Lane (south side)
  • Neals Yard
  • New Buildings
  • New Street
  • Park Road (north side)
  • Priory Walk
  • Queen Victoria Court
  • Queens Road
  • Spa Lane (west side)
  • Spencer Street
  • Stockwell Head (north side)
  • The Lawns
  • Upper Bond Street
  • Well Lane
  • Wood Street
  •  Wood Street Close

You can download the map and full street listing showing the boundary of the Article 4 Direction.

The council will keep the area under review, and the boundary may be reconsidered in future if circumstances change.

What does this mean in practice?

For existing HMOs, the Article 4 Direction is not retrospective:

  • Lawful HMOs in place before 1 May are not affected
  • They can continue to operate without needing new planning permission
  • Licensing arrangements remain unchanged

For new HMOs, if you intend to create a new small HMO within the defined area:

  • You will need to apply for planning permission
  • Each application will be assessed on its own merits
  • Factors considered may include: 
    • Existing concentration of HMOs nearby
    • Impact on the character of the street
    • Amenity of neighbouring homes
    • Local planning policies
    • National planning policies and relevant material considerations 

This is consistent with national best practice and the approach taken by many other local authorities.

HMO licensing

It is important to note that:

  • Planning and licensing are separate systems
  • The Article 4 Direction does not change licensing requirements
  • Landlords must continue to meet all relevant HMO licensing, safety and management standards

More information on how to apply for an HMO licence can be found by visiting house in multiple occupation (HMO)

Consultation outcome

A public consultation was held to inform the council’s decision.

  • The consultation closed on Friday 27 March 2026
  • Responses were received from residents, landlords, businesses and stakeholders
  • Feedback was used to inform the final decision and boundary

The consultation was promoted through:

  • Local media
  • The council’s website
  • Email notifications to subscribers
  • Social media
  • Parish councils, borough councillors and the local MP
  • The Borough Bulletin, delivered borough wide in March

Last updated: 30/04/2026 08:59