Tower Hamlets Section 257 HMOs and the Article 4 Direction Explained

Two of the most misunderstood aspects of property licensing in Tower Hamlets aren't about the licence application itself — they're about whether your building triggers an unusual HMO classification under Section 257, and whether you need planning permission on top of (or instead of) a property licence.

Section 257 HMOs: Converted Buildings

A Section 257 HMO is defined under the Housing Act 2004 as a building that has been converted into self-contained flats where:

1. The conversion works did not comply with the Building Regulations 1991 (or later equivalent standards), and
2. Less than two-thirds of the flats are owner-occupied

This catches older Victorian and Edwardian houses that were split into flats decades ago without proper building control sign-off. Tower Hamlets has a significant stock of these — pre-war terraces in Whitechapel, Stepney and Bow that were divided into bedsits or small flats during the mid-20th century, often without any formal conversion approval.

The classification matters because it creates licensing obligations at two levels:

Building level: The freeholder or head lessor of a Section 257 building may have overarching management duties for the building's common parts, structural elements and fire safety systems.

Individual flat level: If a flat within a Section 257 building is let to three or more people from two or more separate households, that individual flat requires an additional HMO licence under the borough-wide scheme. The Section 257 status of the building is separate from the licensing obligation of each flat.

The confusion arises because landlords often assume that if their flat is self-contained (its own front door, kitchen, bathroom), it can't be an HMO. That's wrong. A self-contained flat occupied by three unrelated sharers is an HMO regardless of the building's conversion history. Building-level duties may also arise depending on the ownership and management arrangements.

The Article 4 Direction

Tower Hamlets enforces a borough-wide Article 4 Direction that removes permitted development rights for converting a C3 dwelling (single household) into a C4 small HMO (3–6 unrelated occupants).

Under normal permitted development rights (the Town and Country Planning (General Permitted Development) Order 2015), you can switch between C3 and C4 use without applying for planning permission. The Article 4 Direction removes that automatic right across the entire borough. In Tower Hamlets, establishing a new HMO — even a small one with just three or four sharers — requires formal planning permission for a change of use.

Why Both Systems Exist Independently

Property licensing (Housing Act 2004) and planning permission (Town and Country Planning Act 1990) operate as completely separate legal frameworks. Getting one does not give you the other.

A property licence confirms that the property meets housing safety and management standards. Planning permission confirms that the use of the building is lawfully authorised. You can have a valid HMO licence but be in breach of planning control if you never obtained C4 permission. Conversely, you can have C4 planning permission but face enforcement under the Housing Act for operating without the required licence.

Tower Hamlets can and does enforce on both fronts simultaneously. Planning enforcement can include Enforcement Notices and Stop Notices.

Practical Steps

For Section 257 buildings: Check when the building was converted and whether the works had building control approval. If the conversion did not comply with the Building Regulations 1991 or later standards, check what proportion of flats are owner-occupied. If less than two-thirds are, the building may be classified as a Section 257 HMO. Contact the Housing Licensing Team for written confirmation.

For Article 4 compliance: Before converting a single-household let into a shared house, check whether the property has existing C4 use rights. Properties that were already operating as HMOs before the Article 4 Direction took effect may have established lawful use. Properties that have always been single-household need planning permission for C4 use — apply to the Tower Hamlets planning department before changing the occupancy.

For both: The property licence application asks about planning status. Declaring your property as an HMO on the licence application while lacking C4 planning permission creates a documented admission of a planning breach.

The Tower Hamlets Landlord Licensing Guide covers Section 257 diagnostics, the Article 4 Direction's practical implications, and how to handle the planning/licensing interaction without exposing yourself to parallel enforcement on both fronts.

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