Traditionally, councils provide a 12-month notice period before implementing such a change, allowing developers and investors to adjust their plans. However, Bolton has bypassed this convention, leaving developers with significant financial exposure. According to Taylor , a typical “back to brick” HMO conversion can cost between £200,000 and £250,000, much of which may now have to be written off.

The council justified its action by citing a surge in HMOs, with numbers reportedly rising from 170 to over 700 in recent years, many of which are housing asylum seekers. Local residents have also voiced concerns about overcrowding, noise, and declining property values.

Critics argue that while some restrictions on HMOs may be warranted, the council’s emergency action is “unreasonable” and has jeopardized businesses. This move sets a “dangerous precedent,” with warnings that other local authorities may now be emboldened to follow suit, creating a complex and unpredictable landscape for property investors across the country.

Developers are now urged to seek professional advice and ensure compliance is built into their plans from the very beginning to avoid a “financial disaster.”