Croydon Managing Agent and Freeholder Licensing: Who Needs the Licence?

Using an Agent Does Not Remove the Licensing Duty

A common misconception: employing a letting agent or managing agent does not exempt a property from licensing in Croydon. Whether you manage the property yourself or delegate to a full-service agency, the property still requires a licence if it falls within the selective, additional HMO or mandatory HMO schemes.

The application responsibility falls on the person in control of or managing the property. Croydon says this can include the owner, manager or rent-receiving agent; using an agent does not remove the licensing duty.

Who Should Be the Licence Holder?

The licence holder must be the "most appropriate person" to hold the licence — usually the landlord, person receiving the rent or person in control of the property. Croydon Council assesses who should be named on the licence.

Freeholder-owned properties: The freeholder may apply and hold the licence. If the proposed licence holder lives outside the UK, the application is valid only if a UK-based managing agent agrees to be bound by the licence conditions and obligations.

Leasehold properties: Where a leaseholder holds a lease and sublets the property, the leaseholder typically applies. However, if the freeholder retains significant control (for example, the lease requires the freeholder's consent for subletting and the freeholder directs the tenancy), the council may decide the freeholder is the appropriate licence holder.

Corporate ownership: If the property is owned by a company or partnership, the application must name a designated corporate officer as the responsible individual. The registered company details must match the Land Registry title.

The Managing Agent's Role

A managing agent can be named on the licence as the "manager" — the person responsible for day-to-day property management. The landlord may also nominate an agent or manager as licence holder if they agree and a suitable agreement binds them to the licence conditions and obligations.

Being named as the manager on a licence carries its own obligations:

• The manager must pass the fit-and-proper person test (same criteria as the licence holder — no unspent convictions for fraud, violence, housing offences or discrimination)
• The manager's name and contact details must be displayed in HMO common areas
• The manager must comply with the Management of Houses in Multiple Occupation Regulations 2006 in HMOs

The named licence holder must ensure the licence conditions are met. A manager or agent who agrees to be bound by those conditions also has obligations; do not assume that naming an agent removes the landlord's responsibilities.

Practical Steps for Landlords Using Agents

If you delegate to a managing agent in Croydon:

1. Confirm in your agency agreement that the agent will handle licence application documentation, upload certificates and manage ongoing condition compliance
2. Retain portal access — even if the agent submits the application through the Metastreet portal, ensure you have login credentials and can verify the application status yourself
3. Review the fit-and-proper declarations — the proposed licence holder must make declarations about their own suitability; if the agent is nominated as holder, the agent makes those declarations
4. Check certificates independently — verify that gas safety, EICR and EPC documents the agent claims to have arranged are actually current and uploaded

The £199–£500+ VAT that agents typically charge for licensing administration is separate from the council's statutory licence fee. You pay both.

What If Ownership Changes?

A property licence is personal and non-transferable. If a licensed property is sold, the new owner must submit a fresh application. The existing licence terminates automatically on completion of the sale.

If you are buying a property in Croydon that should be licensed, check the public register to confirm its current licensing status and budget for the application fee from day one.

For the full Croydon licensing application process, see our step-by-step guide.

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