Croydon HMO Licensing Requirements 2026: Landlord Guide

Croydon's property licensing landscape is set for significant changes in 2026. Currently operating only mandatory HMO licensing, the council has proposals for new additional and selective licensing schemes that will affect thousands of landlords. If you let property in Croydon, understanding both the current rules and upcoming changes is essential.

This guide covers Croydon's current licensing requirements, the 2026 consultation proposals, property standards, and what you need to do to prepare.

Croydon's Current Licensing Position

Unlike many London boroughs with multiple active schemes, Croydon currently operates a relatively simple licensing framework — though this is about to change.

Mandatory HMO Licensing (Currently Active)

This national scheme applies to larger HMOs with five or more occupants from two or more households sharing facilities.

Current status: Active now Licence term: Five years Coverage: Borough-wide for qualifying properties

If your property has five or more unrelated tenants sharing kitchen or bathroom facilities, you need a mandatory HMO licence now. No exceptions.

Additional HMO Licensing (Proposed for 2026)

Croydon is consulting on a new additional licensing scheme that would cover HMOs with 3-4 occupants. This is currently under consultation and, if approved, would launch in 2026.

Proposed fee: £1,250

If you're operating a smaller HMO with 3-4 tenants, monitor the council's consultation closely. You may need to licence these properties soon.

Selective Licensing (Proposed for 2026)

Croydon's previous selective licensing scheme expired in September 2020. A new scheme is under consultation for 2026 that would apply to designated areas.

Proposed fee: £800

This would affect private rentals in specific wards, regardless of property size.

Fees: Per-Room Pricing Structure

Croydon uses a unique per-room fee structure for mandatory HMO licensing:

Mandatory HMO Licence

Fee structure: £285 per habitable room (maximum £5,707)

• Part A: £171 per room (application fee)
• Part B: £114 per room (grant fee)

Examples:

• 5-room HMO: £285 × 5 = £1,425
• 6-room HMO: £285 × 6 = £1,710
• 10-room HMO: £285 × 10 = £2,850

This per-room structure means larger properties pay significantly more. There's a cap at £5,707 (20 rooms), so very large properties don't pay beyond this point.

Current Processing Times

Standard processing: 12 weeks typical

Croydon's processing times are slightly longer than some London boroughs. Start applications early, particularly if you have a fixed tenancy start date.

Property Standards in Croydon

Croydon applies national HMO standards. The council's housing team conducts inspections and enforces compliance.

Room Size Requirements

Minimum floor areas:

• Single bedroom (1 person): 6.51 square metres
• Double bedroom (2 persons): 10.22 square metres
• Kitchen: Adequate for number of occupants
• Living room: Required for larger HMOs

The council measures during inspection. Undersized rooms must be taken out of use.

Fire Safety Standards

Requirements include:

• Smoke alarms: On every floor
• Heat detectors: Required in kitchens
• Fire doors: On escape routes
• Fire risk assessment: Required
• Fire safety equipment: Required
• Clear escape routes: Must be maintained

Gas and Electrical Safety

• Gas safety: Annual CP12 certificate
• Electrical safety: EICR every 5 years minimum
• EPC rating: Minimum E rating required by law

Additional Requirements

• Adequate heating throughout
• Hot and cold water
• Adequate ventilation
• Secure entry systems
• Waste management facilities

Required Documentation

Prepare these documents before applying:

• HMO licence application
• Gas safety certificate (CP12)
• Electrical Installation Condition Report (EICR)
• Energy Performance Certificate (EPC)
• Fire risk assessment
• Floor plans with room measurements
• Building insurance certificate
• Landlord identity verification
• Proof of ownership

The 2026 Consultation: What Landlords Need to Know

Croydon is consulting on expanding its licensing regime. Here's what to watch for:

Timeline

The consultation proposes new schemes for 2026. Monitor the council's website for:

• Consultation outcomes
• Final scheme design
• Launch dates
• Fee structures

Impact on Smaller HMOs

If additional licensing is approved, properties with 3-4 occupants will need licences for the first time. This affects thousands of Croydon landlords currently operating without licensing.

Impact on Private Rentals

If selective licensing is approved, private rentals in designated areas will need licences regardless of household size. This extends regulation to single-family rentals and self-contained flats.

Preparing for Changes

If you operate properties that might be affected:

1. Monitor the council's announcements
2. Assess your properties against HMO standards
3. Budget for potential licence fees
4. Gather documentation early

Supported Living and Exempt Accommodation

Supported accommodation may qualify for exemption from HMO licensing under Housing Act 2004 sections 254 and 257. However:

• Exemption is assessed case-by-case
• Contact the council to confirm your status
• Exemption does not exempt you from property standards
• The council will still inspect and enforce

Even if new licensing schemes don't technically apply to exempt accommodation, the council's standards enforcement will continue.

Enforcement Approach

Croydon enforces HMO licensing requirements. Penalties for non-compliance include:

• Civil penalties up to £30,000 per offence
• Rent repayment orders (up to 12 months' rent)
• Prohibition orders
• Criminal prosecution for serious breaches

The council uses various methods to identify unlicensed properties, including data matching and complaints.

Planning Permission

For HMOs:

• 3-6 occupants: C4 use class
• 7+ occupants: Sui Generis use class

Check with the planning department before converting properties. Some areas may have restrictions.

No Current Discounts

Unlike some boroughs, Croydon currently offers no discounts for accredited landlords. All applicants pay the same per-room fees.

The Application Process

1. Count habitable rooms: This determines your fee
2. Prepare property: Meet all standards
3. Gather documents: Complete documentation
4. Submit application: Via council portal
5. Pay Part A fees: £171 per room on application
6. Inspection: Council inspects
7. Pay Part B fees: £114 per room before grant
8. Receive licence: Five-year term

Getting Help

Croydon HMO Licensing Team

• Email: housing@croydon.gov.uk
• Phone: 020 8726 6100
• Website: croydon.gov.uk/housing/landlords/houses-multiple-occupation-hmo

The team can answer questions about current requirements and provide updates on the 2026 consultation.

BoroughReady Support for Croydon

With 2026 changes likely, Croydon landlords need to stay informed. BoroughReady's Croydon compliance pack includes:

• Current mandatory HMO guidance
• Updates on 2026 consultation outcomes
• Property assessment tools
• Document templates
• Application support
• Renewal tracking

Get your Croydon compliance quote and ensure you're ready for both current and upcoming requirements.

Summary

Croydon's licensing landscape is evolving:

1. Mandatory HMO licensing active now (5+ occupants)
2. Per-room fee structure (currently £285 per room)
3. Additional and selective licensing proposed for 2026
4. 12-week processing times
5. No discounts currently available

Monitor the council's announcements closely if you operate smaller HMOs or private rentals. The 2026 changes could significantly affect your compliance obligations.

For current requirements and consultation updates, check Croydon Council's HMO licensing pages.