Croydon Mandatory HMO Licence: Rules for Larger Shared Houses

When Mandatory HMO Licensing Applies

Mandatory HMO licensing is a permanent national scheme under Part 2 of the Housing Act 2004. In Croydon — as everywhere else in England — it applies to any property occupied by five or more people forming two or more separate households who share basic amenities such as a kitchen, bathroom, or toilet.

The expanded criteria have been in force since 1 October 2018, when the government removed the previous three-storey requirement. A single-storey property with five sharers needs a mandatory HMO licence just as much as a four-storey bedsit conversion.

This scheme covers all 28 Croydon wards with no expiry date. It sits at the top of the licensing hierarchy — if your property qualifies, mandatory HMO licensing applies regardless of whether it is also in a selective licensing ward.

Bedsits and Converted Properties

Classic bedsit HMOs — properties where tenants have individual rooms with shared kitchens and bathrooms — fall under mandatory licensing once the five-occupier, two-household threshold is met. Bedsit room standards in Croydon require 13.50 m² for a single-person bedsit with a kitchen inside (shared bathroom), or 10.00 m² where both kitchen and bathroom are shared.

Section 257 converted blocks may have separate licensing treatment. Croydon's current Additional HMO scheme page lists qualifying Section 257 blocks among the exceptions to that scheme, so do not assume they use the additional route.

Per-Room Fee Structure

Unlike selective and additional HMO licensing, which charge flat fees, mandatory HMO licensing in Croydon is calculated per habitable room at £295 per room for a five-year licence:

• Part A (submission): £177 per room
• Part B (before grant): £118 per room

A five-bedroom HMO would cost £1,475 for a standard five-year licence. The total five-year fee is capped at £5,907. A one-year licence (issued where the council has compliance concerns) is charged at £201 per room.

The Part A fee is non-refundable. Croydon lists the mandatory HMO fee separately from the selective and additional HMO discounts.

Room Size Requirements

Croydon enforces both the national statutory minimums and local amenity standards:

Any floor area where the ceiling height is below 1.5 metres does not count toward these minimums. Rooms under 4.64 m² cannot be used as sleeping accommodation at all.

For shared facilities, Croydon requires one complete set of cooking amenities (four-ring hob, oven, sink, fridge-freezer, storage) per five occupants, and one bathroom with separate WC per five occupants.

Licence Conditions

Mandatory HMO licences carry conditions covering maximum occupancy, room-by-room usage, gas and electrical safety certification, smoke and carbon monoxide alarm maintenance, waste management, and tenant reference requirements. The licence specifies the maximum number of occupiers and households for the property.

Breaching licence conditions is an offence. The council can issue civil penalties of up to £40,000, and permitting overcrowding in a licensed HMO carries a separate starting fine of £20,000 under Croydon's enforcement policy.

The Housing Act 2004 Framework

The Housing Act 2004 established the mandatory HMO licensing regime in Part 2 (Sections 55-78). The Licensing of Houses in Multiple Occupation (Mandatory Conditions of Licences) (England) Regulations 2018 set the current national room size standards. Croydon's local amenity standards sit alongside these as additional requirements for licensed HMOs.

For a full walkthrough of the licensing hierarchy, application process, and compliance conditions, see our Croydon Landlord Licensing Guide.

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