If you own or manage an HMO in Stoke-on-Trent, September 2026 marks an important moment. Stoke-on-Trent City Council is proposing changes that could reshape how houses in multiple occupation are regulated across the city. From a proposed Article 4 Direction to a proposed city-wide additional licensing scheme and concentration caps, the landscape for HMO landlords, whether you own one property or an entire portfolio, could change significantly.
At Martin & Co Stoke-on-Trent, we have been monitoring these proposals closely. With over 30 years of lettings expertise and a dedicated local team that understands this city’s property market inside out, we want to make sure every landlord we work with is fully informed, fully prepared, and ahead of the curve.
What is Article 4 Direction, and why does it matter?
Currently, converting a property into a smaller HMO (up to six occupants, Use Class C4) in Stoke-on-Trent does not require planning permission. This is because permitted development rights allow landlords to make this change without going through the formal planning process.
The proposed Article 4 Direction would remove those permitted development rights. If it takes effect, relevant new HMO conversions would require a planning application to Stoke-on-Trent City Council before work can begin.
This is not a minor administrative change. It means:
- Planning applications take time and carry no guarantee of approval.
- Costs associated with planning submissions will be an additional consideration for any landlord looking to convert a new property.
- Properties that are already operating as lawful HMOs before the Direction is confirmed will retain their existing use, but any new conversions after that date will need to go through the planning system.
If you are considering converting a property to an HMO, acting now, before the Direction is formally adopted, is critical. Once it is in place, that window closes.
The proposed additional licensing scheme explained
Alongside the Article 4 Direction, the council is proposing a city-wide additional licensing scheme. This would cover smaller HMOs, those with up to four occupants, that currently fall outside mandatory HMO licensing requirements.
What this means for landlords
Licence fees are estimated at between £750 and £1,000 per property over a five-year period. While this represents a manageable cost for well-prepared landlords, those managing multiple smaller HMOs across Stoke-on-Trent should factor this into their financial planning now.
Licensing also comes with conditions: property standards, management obligations, and ongoing compliance requirements. Failure to hold a valid licence where one is required is a criminal offence and can result in substantial fines, as well as Rent Repayment Orders that allow tenants to reclaim up to 12 months’ rent.
For landlords managing larger portfolios across the city, the cumulative licensing burden is significant. This is precisely the kind of compliance complexity where Martin & Co’s managed services deliver real, measurable value.
Concentration caps: which areas are most affected?
One of the most consequential elements of the proposals is the introduction of concentration caps. These are designed to prevent HMOs from clustering too densely in particular streets and wards.
How the caps work
The proposed framework sets out three tiers:
- A 5% cap on HMOs within a 50-metre radius in standard wards across Stoke-on-Trent.
- A tighter 2.5% cap in high-concentration wards where HMO density is already elevated.
- A 1.5% cap in other areas where the council wishes to limit further HMO growth.
In addition, frontage rules would prevent two HMOs from sitting on the same street frontage, a measure that could directly affect landlords who own multiple properties on the same road.
The postcodes and neighbourhoods to watch
With approximately 2,000 HMOs currently operating across Stoke-on-Trent, the areas most affected by these caps are those where HMO density is already highest. Basford and Hartshill, Hanley Park, Joiners Square, and Shelton are the neighbourhoods most concentrated with HMO stock, and therefore the areas where landlords face the greatest risk of falling foul of the new limits.
If you own or are considering purchasing an HMO in any of these areas, understanding where your property sits relative to the concentration thresholds is essential. Martin & Co Stoke-on-Trent can help you assess your position with local knowledge that goes beyond the postcode.
What landlords should be doing right now
The pace of these changes means that waiting is not a viable strategy. Here is what we recommend every HMO landlord in Stoke-on-Trent consider immediately.
Audit your existing HMO portfolio
Review every property you operate as an HMO. Confirm its current licensing status, the number of occupants, and whether it falls within one of the high-concentration wards. Identify any properties that may be approaching the proposed concentration limits.
Assess any planned conversions urgently
If you are planning to convert a property to HMO use, the window under permitted development rights may be closing faster than you expect. Take professional advice now, before the Article 4 Direction is formally adopted.
Factor licensing costs into your financial planning
Whether you manage one HMO or twenty, the additional licensing fees need to be accounted for in your projections. At £750 to £1,000 per property over five years, a portfolio of ten HMOs could represent up to £10,000 in licensing costs alone.
Consider the value of professional management
The compliance burden on HMO landlords in Stoke-on-Trent is increasing substantially. From licence applications and property inspections to tenancy management and maintenance obligations, the administrative weight is considerable.
Martin & Co’s Premium Managed and Managed services are specifically designed to take this burden off your shoulders. Our dedicated local team handles compliance, maintenance, inspections, and tenant management, so you can focus on the returns, not the red tape. With 24/7 repairs support, state-of-the-art tenant background checks, and guaranteed rental income options, we give landlords the peace of mind that comes from knowing every detail is being handled by experts.
Why Martin & Co Stoke-on-Trent is the right partner for HMO landlords
Navigating regulatory change of this scale requires more than a checklist. It requires a lettings partner who understands the local market, knows the legislation, and has the experience to guide you through complexity without fuss.
Martin & Co has been doing exactly that for over 30 years. Across our national network, we manage more than 41,000 properties and let 370 new properties every week. Our Stoke-on-Trent team combines that national depth of expertise with genuine, on-the-ground knowledge of the city’s neighbourhoods, from Basford and Shelton to Hanley Park and beyond.
We are not just letting agents. Many of our team members are landlords themselves. We understand the pressures you face, and we are here to simplify your property journey at every stage.
Take the next step with confidence
The HMO regulatory changes coming to Stoke-on-Trent are significant, but they are navigable, with the right support in place. The landlords who act now, who understand the proposals and position their portfolios accordingly, will be the ones best placed to continue operating profitably and compliantly in this city.
Do not wait for the Article 4 Direction to land before taking action. Get in touch with Martin & Co Stoke-on-Trent today for a free, no-obligation landlord consultation. Our local team will talk you through how the proposed changes affect your specific properties, what steps you need to take, and how our managed services can protect your investment going forward.
Ready to understand what your HMO is worth in the current market? Book a free rental valuation with Martin & Co Stoke-on-Trent and get an accurate, expert assessment from a team that knows this city’s lettings market inside out. There is no obligation, no fuss, just clear, honest advice from a trusted local partner with over 30 years of experience behind it.
