HMOs in Warrington: What Landlords Need to Know Before the Rules Change

Until recently, converting a family home into a small HMO of between three and six tenants was permitted development in most parts of Warrington. That meant you could make the change without applying for planning permission, provided the property fell outside areas already covered by an Article 4 Direction.

That is changing. Warrington Borough Council's Article 4 Direction for its Central 6 wards is due to come into force on 25 September 2026, covering Orford, Poplars and Hulme, Fairfield and Howley, Latchford East, Latchford West and Bewsey and Whitecross. Cabinet has also approved plans to extend these controls borough-wide, which will affect properties across the rest of Warrington as that process completes.

What this means in practice is that the automatic permitted development right to convert a family home (C3) into a small HMO (C4) without planning permission is being removed. New conversions in controlled areas require a planning application.

This does not prevent HMO conversions from going ahead. Planning permission may still be granted where the proposal is appropriate. But it introduces an additional step, a cost and a degree of uncertainty that was not there before.

Culcheth, Birchwood, Croft and Glazebury all fall within Warrington Borough and will be affected as the borough-wide rollout is confirmed. Lowton falls under Wigan Borough Council and Newton-le-Willows falls under St Helens Borough Council, where separate local planning policies apply.

An HMO is a property occupied by three or more people from more than one household who share basic facilities such as a kitchen or bathroom.

Small HMOs of three to six unrelated occupants are Use Class C4. Large HMOs of seven or more occupants are classed as Sui Generis and have always required full planning permission regardless of any Article 4 Direction.

A property shared by two people is a standard joint tenancy, not an HMO, regardless of whether they are from different households.

Separate from planning permission, HMOs are subject to licensing requirements. Mandatory licensing applies to any property occupied by five or more people forming two or more separate households. Licensed properties must meet specific standards covering room sizes, amenity provision and fire safety, and are subject to regular inspection.

Properties with fewer than five occupants may still require a licence depending on local council schemes. It is worth checking the current position with Warrington Borough Council directly before letting any property as an HMO. Operating without a required licence carries significant financial penalties.

The financial case is straightforward. A three-bedroom house let as a single let in the WA3 area might achieve around £1,000 to £1,200 per month. The same house operating as a three-person HMO, with rooms let individually, can generate considerably more. Gross yields on well-run HMOs in the North West typically sit between seven and ten percent, compared to four to five percent for standard single lets.

The trade-off is management. HMOs require more active oversight than single lets. Compliance obligations are greater, wear and tear is higher and tenant turnover tends to be more frequent. The management question is as important as the financial case when weighing up whether a conversion makes sense.

The Renters Rights Act changed the tenancy landscape for all private landlords in England. Individual room lets in an HMO are somewhat less affected by the abolition of fixed-term tenancies than standard single lets, since most HMO rooms were already let on periodic terms. However, the Act's provisions around rent increases, possession grounds and notice periods apply to HMO tenancies in the same way as any other.

Not every property is suitable and the Article 4 Direction means planning permission will be required across an increasing part of the borough from September 2026 onwards. The council will consider the existing concentration of HMOs in the area, parking and traffic impact, the character of the neighbourhood and the proposed room sizes and management arrangements. Some applications will be approved. Others will not, and it is better to find that out before committing money to conversion work.