Newham Article 4 Direction: HMO Planning Permission Rules

Getting a property licence in Newham is only half the story if you're converting a single-family home into a shared house. Newham operates a borough-wide Article 4 Direction that removes the automatic right to change a property from a family dwelling to a small HMO — and many landlords discover this only after they've already started letting to multiple tenants.

What the Article 4 Direction Does

Under normal national planning rules, converting a property from Class C3 (single dwelling) to Class C4 (small HMO for 3-6 unrelated occupants) is "permitted development" — meaning you don't need planning permission.

Newham removed that right. The council's Article 4 Direction, made on 31 July 2012 and in force since 31 July 2013, applies across the entire borough. Any landlord who wants to change a family home from C3 use to HMO use must first obtain full planning permission from Newham's Planning Authority.

Large HMOs — properties with seven or more unrelated occupants (Sui Generis use class) — have never had permitted development rights anywhere in England. They always require planning permission.

Planning Permission and Property Licensing Are Separate

This is the point where landlords get caught. A property licence under the Housing Act 2004 and planning permission under the Town and Country Planning Act 1990 are two entirely separate regulatory systems. Having one does not grant or imply the other.

A landlord can hold a valid Additional HMO Licence from Newham and still be in breach of planning law if they never obtained permission for the C3-to-C4 conversion. Conversely, having planning permission for HMO use doesn't remove the need for a property licence.

Newham makes this explicit: if a landlord applies for an Additional or Mandatory HMO licence and is subsequently refused planning permission, the licence application fee is not refunded.

The Practical Risk

Planning enforcement and licensing enforcement operate independently. A landlord letting a property as a 4-person HMO without planning permission faces:

• A planning enforcement notice from Newham's Planning Authority requiring the use to revert to C3 or a retrospective planning application to be submitted
• Separately, a civil penalty of up to £40,000 from the licensing team if the property is also unlicensed
• Potential Rent Repayment Order claims from tenants for the unlicensed period

The planning route is particularly expensive if retrospective permission is refused, because the landlord must then reduce occupancy back to a single household or couple — losing rental income and potentially needing to serve notices on existing tenants.

What Landlords Should Do Before Letting as an HMO

Check planning status first. Before letting to three or more unrelated people, verify whether the property already has C4 or Sui Generis planning permission. If the property has been used as a shared house continuously since before 31 July 2013 (the Article 4 operative date), the existing use may be lawful — but you'd need evidence to demonstrate that.

Contact the planning team. Newham's Planning Duty Officer can confirm existing permissions and advise on whether an application is needed. Reach the team at [email protected] before committing to a licensing application.

Apply for planning permission before or alongside your licence application. Don't assume the licence covers everything. The standard planning application fee applies, and the timeline is separate from the licensing process.

Our Newham landlord licensing guide explains how planning and licensing interact, including what documents you need for each and the risks of proceeding with only one.

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