Our Insights
In February 2025, Middlesbrough Council introduced a non-immediate Article 4 Direction, officially coming into force on 8 February 2025. This regulation marks a significant shift in how investors and landlords can develop and manage properties within the borough—especially those looking to convert homes into Houses in Multiple Occupation (HMOs).
But what does this really mean for investors?
What Is Article 4 and Why Is It Important?
Article 4 Directions are planning tools used by local councils to control development rights. In Middlesbrough’s case, it means that landlords can no longer convert single-family homes (Class C3) into small HMOs (Class C4) under permitted development. Instead, they must now apply for full planning permission before making any such changes.
This applies borough-wide, with the exception of areas governed by the Middlesbrough Development Corporation (MDC)—such as parts of the town centre.
Who’s Affected by the Change?
Traditionally, planning permission for HMOs was only a concern if you were housing five or more tenants (a large HMO). Now, under Article 4, any property accommodating three or more unrelated individuals is classed as an HMO and requires planning consent—even if it’s only three or four bedrooms.
It’s worth noting that while planning permission is now required, licensing rules remain unchanged. You still only need a license if your property houses five or more occupants.
The TS1 HMO Setup – What’s Changing?
In areas like TS1, many HMOs are configured as 3–4 bedroom homes, often created by converting the front living room into an additional bedroom. Under the new Article 4 Directive, this setup is now under scrutiny.
One of the biggest concerns from the council is tenant privacy. Bedrooms that face directly onto the street or public footpaths—common in terraced housing—are now no longer considered acceptable unless the property has a significant frontage or setback from the street. This means many existing or potential HMO conversions will no longer meet planning criteria.
How This Affects Sales and Lettings
For investors, these changes can have serious implications:- Conversion restrictions: Buying a 2 or 3-bedroom property with plans to convert it into a 4-bed HMO may no longer be viable.
- Devaluation: Properties previously marketed as HMOs may now be listed as standard residential homes, reducing their income potential and market value.
- Lending challenges: Many traditional mortgage lenders are now less willing to finance HMOs in Article 4 areas without confirmed planning permission in place.
Is Article 4 the End for HMO Investment in Middlesbrough?
Absolutely not—but it does mean you’ll need to approach investment more strategically. Article 4 doesn’t stop you from developing HMOs; it simply means the process is more regulated.
With the right team and advice, you can still make the most of your investment. Whether it’s assessing the viability of a property before purchase, navigating planning applications, or managing renovations to meet compliance standards—we’re here to help.
Need Help with an Article 4 Property?
Whether you’re already holding a property in an Article 4 area or just considering your next investment, expert guidance is key. We offer advice and support on property selection, planning, conversion, letting, and management—even if the property isn’t listed with us.
If you’re looking to invest in Middlesbrough and want to stay ahead of the changes, get in touch today. Let us help you protect your investment and maximise your rental income in this new Article 4 landscape.
