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Change of use / Article 4 Direction

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Hi, in September 2011 I bought a property in Sheffield with the sole purpose of letting to 4 students. At that point it was not classed as an HMO, I was in regular contact with the Council and was advised. Then in December I received a random email from the Council asking if I was aware of this new law 'Article 4 Direction' which meant that I had to apply to the Council to change the use from C3 (Residential) to C4 (HMO). This was denied.
I now have a property which is neither viable to keep or to sell to the only market which could potentially be interested - landlords.
I totally understand the purpose of the new law, but a street where 98% are students!!! No family would be interested!
Any advice on appealing against their decision please!
I believe this law was not publicised - even one year on some agents aren't aware.At the time auctioneers and agents should all have been informing potential buyers. I would not have purchased this particular house if I had known. Neither legal party were aware either.
I would sincerely appreciate any advice or legal recommendation!

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