Croydon Temporary Exemption Notice: When You Can Delay Licensing

What a Temporary Exemption Notice Is

A Temporary Exemption Notice (TEN) is a formal mechanism under the Housing Act 2004 that allows a property owner to delay licensing for a short period while taking steps to remove the property from the licensing requirement altogether. It applies to both selective licensing (Section 86) and HMO licensing (Section 62).

A TEN is not a general-purpose extension or a way to avoid licensing costs. It exists for specific transitional situations where the property will genuinely stop needing a licence within a few months.

Qualifying Grounds

Croydon Council will consider a TEN application where the owner can demonstrate they are actively taking steps so the property no longer requires a licence. Typical qualifying scenarios include:

• Selling the property with vacant possession — the property is being marketed and the owner intends to complete the sale before the exemption period ends
• Converting back to single-family use — the owner is reducing occupancy from an HMO configuration to a single-household let (or owner-occupation), including any necessary planning applications to reverse a C4 HMO use
• Recovering possession — the owner is serving lawful notices to regain the property for personal occupation

The key test is that the owner has a credible, time-bound plan to take the property out of the licensing requirement entirely. Vague intentions or financial difficulties are not qualifying grounds.

How Long the Exemption Lasts

An initial TEN covers a period of three months. If the owner can demonstrate that the planned steps are progressing but not yet complete (for example, a property sale has exchanged contracts but not completed), the council may grant a second TEN for a further three months.

The absolute maximum exemption period is six months — two consecutive TENs. No further extensions are available. If the property still requires a licence at the end of the exemption period, a full licence application must be submitted immediately. Operating without either a licence or a valid TEN after that point is a criminal offence.

How to Apply

Apply directly to Croydon Council's Private Sector Housing Team. You will need to set out:

• The property address and current occupancy
• Which licensing requirement applies (selective, additional HMO or mandatory HMO)
• What steps you are taking to remove the property from the licensing requirement
• Evidence supporting those steps (estate agent marketing particulars, solicitor correspondence for a sale, planning application reference numbers, possession notices served)
• A realistic timeline for completion

The council is not obliged to grant a TEN. If the application is refused, you must submit a licence application without further delay.

What a TEN Does Not Do

A TEN exempts the property from licensing — it does not exempt it from other legal obligations. During the exemption period:

• Housing standards still apply — the council can still inspect for HHSRS hazards
• Tenancy law obligations continue — gas safety, electrical safety, EPC and right-to-rent checks remain mandatory
• You cannot use a TEN to continue letting a licensable property indefinitely — it is a transitional measure, not a workaround

Statutory Exemptions (No TEN Needed)

Some properties are permanently exempt from licensing without needing a TEN:

• Properties let by registered social housing providers or local authorities
• Properties let to close family members without a commercial tenancy
• Leases granted for more than 21 years
• Resident landlords with no more than two lodgers (though three or more lodgers creates an HMO)
• Student accommodation managed by an institution under an approved code of practice

If your property falls into one of these categories, you do not need to apply for either a licence or a TEN. The exemptions are defined in the Selective Licensing of Houses (Specified Exemptions) (England) Order 2006 and Schedule 14 of the Housing Act 2004.

For the full licensing process where a TEN does not apply, see our Croydon landlord licensing guide.

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