A council's decision to introduce an immediate Article 4 Direction has left House in Multiple Occupation (HMO) landlords and developers reeling, one legal expert says.
The decision by Bolton Council removes the automatic right to convert family homes (C3) into HMOs for three to six occupants (C4).
There is now a demand for full planning permission for all such conversions, regardless of scale.
Unlike typical council procedures, this change arrived without warning, bypassing the standard 12-month notice period or any grace period for adjustment.
'Abuse of the council's powers'
Des Taylor, casework director at Landlord Licensing & Defence, condemned the move as 'not only unreasonable but also an abuse of the council's powers'.
He highlighted the severe financial strain on developers, noting that a typical 'back to brick' HMO conversion costs between £200,000 and £250,000.
With the council's abrupt withdrawal of Permitted Development rights, Mr Taylor says many developers now face significant losses on projects initiated under previous regulations.
The council's decision follows a sharp rise in HMOs across Bolton, with numbers climbing from around 170 to more than 700 in recent years.
Mr Taylor says that many of these properties house asylum seekers under the government's 'Operation Scatter' initiative.
No justification for decision
While local residents have raised concerns about overcrowding, noise, anti-social behaviour and falling property values, this has prompted some estate agents to advise buyers to steer clear of certain streets.
Mr Taylor argues that the council's emergency action lacks justification.
He told Accommodation for Students: "While there might be a case for HMO numbers to be restricted, the council has no case to impose an emergency action without due notice."
Mr Taylor, a landlord law expert, added that developers risk severe financial losses tied to the government's immigration policies.
He also suggests that councils should consider compensation schemes to offset such drastic measures.
No notice period
Mr Taylor says the lack of a notice period has sparked outrage, with critics calling the council's justification for the move, under mounting political pressure, insufficient.
Typically, councils offer a year's notice to allow developers to adapt, minimising financial disruption.
However, Bolton's decision to sidestep this convention has raised fears of a broader trend.
Mr Taylor warns: "This sets a dangerous precedent.
"Councils are increasingly making abrupt policy changes that disrupt developers' plans, with little regard for financial commitments made under existing rules."
More councils may follow
Mr Taylor is also predicting that neighbouring councils, such as Bury, Wigan, Salford, Manchester and Chorley, may follow Bolton's lead, particularly in areas facing similar housing pressures and resident pushback.
For HMO developers and landlords, the new rules create a challenging legal landscape, requiring navigation of complex planning laws, licensing requirements and building regulations.
Non-compliance could lead to enforcement actions or costly Rent Repayment Orders.
Mr Taylor is advising landlords and developers to act cautiously.
He said: "Developers operating in areas where HMO saturation is under discussion must act proactively.
"That means seeking professional advice before purchasing, converting or submitting HMO applications.
"Getting planning, licensing and building control right from the outset is the difference between a profitable project and a financial disaster."
Student landlords with HMOs
The managing director of Accommodation for Students, Simon Thompson, said: "For student landlords with HMOs, this sudden policy shift serves as a stark warning.
"Landlords will need meticulous planning to avoid financial pitfalls which could see their investment vanish."
He added: "Since student housing often relies on HMOs, landlords must prioritise compliance and legal advice to safeguard their ventures."
