Planning guide

What is an HMO?

An HMO — House in Multiple Occupation — is a property rented to three or more people from more than one household who share facilities such as a kitchen or bathroom. HMOs are common across Birmingham and are subject to specific planning and licensing rules.

What counts as an HMO?

Under Section 254 of the Housing Act 2004, a property is an HMO if it is occupied by three or more people forming more than one household, it is their only or main home, and they share amenities such as a bathroom, toilet or kitchen.

Shared houses rented by students or working adults are typical examples. A home shared by only two unrelated people, or one that is predominantly owner-occupied, does not meet the definition.

Three or more occupiers from more than one household
Shared kitchen, bathroom or toilet
Used as the occupiers' main or only home

Small HMOs (Use Class C4) and large HMOs (sui generis)

Planning law divides HMOs by size, under the Town and Country Planning (Use Classes) Order 1987 as amended.

A small HMO for between three and six unrelated people falls into Use Class C4. A large HMO for seven or more people sits outside all use classes — it is 'sui generis' ('in a class of its own') and always needs full planning permission. A standard family home is Use Class C3.

C4 (small HMO): 3–6 unrelated occupiers sharing facilities
Sui generis (large HMO): 7 or more occupiers — always needs permission
C3: an ordinary family home

When is planning permission needed?

Nationally, permitted development rights let a landlord change a C3 home to a C4 small HMO without planning permission — but only where no Article 4 Direction applies. Changing to a large (sui generis) HMO always needs a full application.

In Birmingham that national right no longer applies. From 8 June 2020 the council introduced a city-wide Article 4 Direction covering all wards, including Kingstanding, which removes the C3-to-C4 permitted development right.

So any landlord in Kingstanding wanting to convert a family home into a small HMO must now apply for planning permission first.

Elsewhere, with no Article 4 in force: C3→C4 is permitted development
In Birmingham since 8 June 2020: C3→C4 always needs permission
C3→large (sui generis) HMO: always needs permission everywhere

Licensing is separate from planning

Planning permission and a property licence are different requirements — a landlord may need both.

Mandatory licensing applies to any HMO occupied by five or more people from two or more households. Birmingham also runs an Additional Licensing scheme (in force since 5 June 2023, covering all wards) that brings smaller three- and four-occupant HMOs into licensing, plus Selective Licensing in some areas. Operating a licensable property without a licence risks a large civil penalty or prosecution.

Mandatory licence: 5+ occupiers from 2+ households (national)
Additional licence: 3–4 occupier HMOs in Birmingham (since June 2023)
Selective licence: all private rented homes in designated wards

Why HMOs matter to a neighbourhood

HMOs provide affordable shared housing, but a high concentration in one area can change the character of a street. This is why councils use Article 4 Directions and planning policies to manage their spread, and why neighbours often comment on HMO applications.

On-street parking pressure
Extra waste and recycling
Noise and amenity concerns
Cumulative loss of family homes

Key terms

Use Class C3: The planning category for a standard dwellinghouse or family home.
Use Class C4: A small HMO with 3–6 unrelated occupiers sharing facilities.
Sui generis: 'In a class of its own' — large HMOs of 7+ occupiers have no use class and always need permission.
Permitted development: Development allowed by national rules without an application, unless a local Article 4 Direction removes that right.

Official sources

This is general guidance, not legal advice. Planning rules and local procedures can change. For a specific application or situation, check directly with Birmingham City Council or seek independent planning or legal advice.