Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

HMO Planning Refusals Double Across English Councils Since 2021

Planning refusals for houses in multiple occupation (HMOs) have more than doubled since 2021, according to research from property firm 1st Avenue. Analysis of 144 English councils found that the number of HMO applications refused rose from 590 in 2021 to 1,203 in 2025.

The total number of decided HMO applications increased by 87% over the same period, rising from 1,848 in 2021 to 3,454 in 2025. Approval rates for HMO applications remained at around 68% between 2021 and 2023, but fell during 2024 and 2025, with early 2026 figures showing a rate of 63%.

The research highlights that a growing number of councils are using Article 4 directions, which can remove permitted development rights for converting family homes into small HMOs and require landlords to seek planning permission. The National Residential Landlords Association estimates that between 75 and 80 English local authorities have introduced Article 4 directions, although there is no central register.

Mandatory HMO licensing applies to properties occupied by five or more people from two or more households who share facilities. Some councils also operate additional licensing schemes that cover smaller HMOs.

1st Avenue warns that restrictions on legitimate HMO supply could push some tenants towards informal or unregulated accommodation, as demand for affordable shared housing remains high.

This trend is particularly relevant for UK letting agents and inventory clerks, as changes in planning and licensing requirements may affect the supply and management of shared housing stock.