How to Work Out Which Croydon Landlord Licence Your Property Needs

The Quick Answer

Croydon runs three property licensing schemes simultaneously, and the licence your property needs depends on the number of occupants, how many households they form, whether HMO occupants share basic amenities, and the property's ward. Get it wrong and you waste a non-refundable Part A fee — £480 for selective, £750 for additional HMO — on the wrong application. Here is how to work it out before you spend anything.

The Three Schemes, Side by Side

Both the selective and additional HMO schemes run from 25 September 2026 to 1 September 2031. Mandatory HMO licensing is a permanent national scheme with no expiry date.

The Four-Question Decision Process

You can determine which licence applies — or whether you need one at all — by answering four questions in order. The order matters because a higher-tier licence exempts you from a lower one.

Question 1: How many people live in the property?

Count every person who uses the property as their main residence, including children of any age, lodgers, and live-in carers who are not family members. Couples count as two people but form one household.

• 5 or more people → go to Question 2
• 3 or 4 people → go to Question 3
• 1 or 2 people → go to Question 4

Question 2: Do they form 2 or more households?

A household is broadly a family unit or a single person. Two unrelated friends sharing are two households. A couple is one household. A parent and adult child are one household.

• 5+ people in 2+ households sharing basic amenities → your property needs a mandatory HMO licence (borough-wide, all wards). Stop here. A mandatory HMO licence exempts you from both the additional HMO and selective schemes.
• 5+ people in 1 household (e.g. a large family) → go to Question 4.

Question 3: Do they form 2 or more households?

Same household test as above, but for a property with 3 or 4 occupants.

• 3–4 people in 2+ households sharing basic amenities → your property needs an additional HMO licence under CAHMOL 2026 (borough-wide). Stop here. An additional HMO licence exempts you from the selective scheme.
• 3–4 people in 1 household (e.g. a family of three or four) → go to Question 4.

Question 4: Is your property in one of the 14 selective wards?

If you have reached this question, your property has not met either HMO licensing threshold; it may be occupied by a single household (one tenant, a couple, or a family) or by two individuals sharing. The selective licensing scheme applies only in these 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, Woodside.

• Yes, in a listed ward → your property needs a selective licence under CPRPL 2026.
• No, not in a listed ward → no licence is required under current Croydon schemes.

If your property sits on a ward boundary, use the council's address checker or contact the licensing team to confirm which ward it falls in.

Common Situations That Confuse Landlords

"My tenant's partner moved in — does that change the licence?" If they are a couple (one household) and no other tenants are present, the property is still a single-household let. The scheme does not change. If another unrelated tenant also lives there, making 3 people in 2 households who share basic amenities, the property may meet the additional HMO threshold.

"I have a selective licence but my tenant moved out and three sharers moved in." Three unrelated sharers who share basic amenities are three households. That triggers the additional HMO scheme, not selective. You need to apply for the correct licence — continuing with a selective licence when the property is an HMO is an offence.

"My property is an HMO but I already have a selective licence." An HMO licence (mandatory or additional) supersedes the selective scheme. If your tenant composition changes to meet HMO criteria, you need the HMO licence even if you already hold a selective one.

"I'm not sure if my lodger counts." If you live in the property and take in a lodger, the property is owner-occupied and generally exempt from licensing. But if you do not live there and a lodger occupies a room, they count as a separate household.

Why Getting This Right Matters

The Part A fee is non-refundable. If you apply for a selective licence (£480 Part A) but your property actually needs an additional HMO licence, you lose that £480 and still need to pay £750 for the correct application. That is £1,230 in Part A fees alone for what should have been a single £750 payment.

Beyond the wasted fee, letting without the correct licence exposes you to a civil penalty of up to £40,000, prosecution, and a Rent Repayment Order where your tenant can claim back up to two years of rent.

The Croydon Landlord Licensing guide includes a printable decision tree that walks through these four questions with the specific ward list, exemption checks, and the fee for each outcome — so you verify the answer on paper before you commit any money to the portal.

Who This Decision Process Is For

• Landlords with a rented property in Croydon who are not sure whether it needs a licence
• Landlords who have heard that Croydon's new schemes started in September 2026 and want to check whether their property is affected
• Landlords whose tenant arrangement has changed (new sharers, a partner moving in, a lodger) and who need to re-check
• Managing agents who want to verify the correct licence type before submitting on a landlord's behalf

Who This Is NOT For

• Landlords outside Croydon — other London boroughs have their own licensing schemes with different ward lists and thresholds
• Landlords seeking legal advice on an enforcement notice or penalty already issued — that requires a solicitor
• Commercial property owners — these schemes cover residential rented homes only

Frequently Asked Questions

Can my property need more than one Croydon licence at the same time?

No. The schemes are hierarchical. A mandatory HMO licence supersedes additional HMO licensing, and an HMO licence exempts the property from selective licensing. Your property needs the licence that matches its current occupancy — not two licences simultaneously.

What if my property is exempt from licensing?

Certain properties are exempt: those managed by registered social landlords, properties subject to a lease of 21 years or more, and properties covered by a temporary exemption notice. If you believe an exemption applies, check the full exemption list on the council website before assuming you do not need to apply.

How do I check which ward my Croydon property is in?

The council's website has a ward lookup by address. You can also search your postcode on the council's property licensing pages. For boundary-edge properties, contact the licensing team directly — the designation is by ward boundary, not by postcode.

Does a pending licence application protect me from enforcement?

Yes. Under the Housing Act 2004, a duly submitted application is a statutory defence against prosecution for operating without a licence. The protection lasts while the application is being processed.

What happens when the selective and additional HMO schemes expire in 2031?

Both schemes run until 1 September 2031. Before expiry, the council will decide whether to renew, modify, or let them lapse. If renewed, existing licence holders typically need to reapply under the new designation. The mandatory HMO scheme has no expiry.

I let to a single family in a non-designated ward — do I need anything?

Under the current Croydon schemes, no licence is required. You should still comply with general landlord obligations (gas safety, electrical safety, EPC, deposit protection, right-to-rent checks), but you do not need a property licence.

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