Do I Need a Landlord Licence in Croydon? How to Check Your Property

The Quick Answer

If you rent out a residential property in Croydon to anyone other than a close family member, there is a strong chance you need a licence. Three separate schemes between them cover most of the borough's private rented stock. Here is how to work out which one applies.

Step 1: Count Occupiers and Households

Start with who lives in the property and how they are related:

• Five or more people from two or more separate households sharing amenities → you need a mandatory HMO licence (borough-wide, all 28 wards)
• Three or four people from two or more households sharing amenities → you need an additional HMO licence (borough-wide, all 28 wards)
• A single family, single tenant, or two unrelated sharers → move to Step 2

Under the Housing Act 2004, a "household" is members of the same family — including cohabiting couples, parents, children, grandparents, siblings, and step-relations. Two unrelated people count as two separate households, but they do not meet the HMO threshold unless there are at least three occupiers from multiple households.

Step 2: Check Your Ward

If your property houses a single household or up to two unrelated sharers, the next question is location. Selective licensing applies only in 14 designated wards: Addiscombe East, Addiscombe West, Bensham Manor, Broad Green, Fairfield, Norbury and Pollards Hill, Norbury Park, Selhurst, South Croydon, South Norwood, Thornton Heath, Waddon, West Thornton, and Woodside.

Use the council's official address lookup tool to confirm your ward. Do not rely on a postcode search — ward boundaries often cut through postcode areas.

• Property in one of the 14 wards → you need a selective licence
• Property outside the 14 wards → no local licence required (standard housing law still applies)

Step 3: Check for Exemptions

Even if your property falls within a licensing scheme, certain categories are exempt:

• Social housing let by a registered provider or local authority
• Family lettings to close relatives without a commercial tenancy
• Long leaseholders holding a lease over 21 years
• Resident landlords living in the property as their main home and letting to no more than two lodgers (three or more lodgers triggers HMO classification)
• Regulated accommodation such as student halls under an approved code, care homes, or bail hostels
• Properties with an active Temporary Exemption Notice (TEN) under Sections 62 or 86 of the Housing Act 2004

Using a letting agent or managing agent does not exempt you. The legal obligation to hold a licence stays with the property owner.

Common Scenarios

I rent to a couple and their child. One household — not an HMO. If the property is in one of the 14 selective wards, you need a selective licence. Outside those wards, no local licence.

I rent to three friends. Three people, three separate households — this is an HMO under Section 254 of the Housing Act 2004. You need an additional HMO licence (borough-wide).

I rent to two unrelated people in Thornton Heath. Two sharers, two households, but below the HMO threshold. Thornton Heath is a designated ward, so you need a selective licence.

I rent to six people in separate rooms in Selhurst. Six occupiers from multiple households — mandatory HMO licence. The HMO licence also exempts you from selective licensing in Selhurst.

What Happens If You Do Not Apply

Letting without the required licence is a criminal offence. Croydon Council can impose civil penalties of up to £40,000 per offence. Tenants can pursue rent repayment orders for up to 24 months of gross rent. And while the property is unlicensed, you cannot lawfully serve statutory possession notices.

Using the Council's Checker

Croydon maintains an online public register where you can search for existing licences by address. For an HMO, check both the new public HMO register and the legacy mandatory HMO register. If the property does not appear on the relevant register and you believe it should be licensed, contact the council before assuming it is unlicensed.

For a complete decision tree covering every combination of occupancy, ward location, and exemption status, see our Croydon Landlord Licensing Guide.

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