Selective Licensing in London: Which Boroughs Have Schemes and What They Cost

How Selective Licensing Works Across London

Selective licensing under Part 3 of the Housing Act 2004 allows local authorities to require all privately rented properties in designated areas to hold a licence — even single-household lets that would not otherwise need one. Each borough decides independently whether to designate areas and sets its own fees, conditions and enforcement approach.

Since the Housing Act 2004 General Approval 2024 removed the requirement for Secretary of State confirmation on large-scale schemes (those covering more than 20% of a borough's area or private rented stock), London boroughs have been faster to introduce or expand selective licensing. The approval now sits with local cabinet decisions, provided the statutory evidence tests are met.

South London Schemes

Several south London boroughs operate selective licensing alongside Croydon:

Croydon — The CPRPL 2026 scheme covers 14 wards in the north and west of the borough from 25 September 2026 to 24 September 2031. The fee is £800 for five years (£480 Part A, £320 Part B), with discounts available for eligible accredited landlords or scheme members (£100 off), qualifying multi-dwelling selective applications (£100 off) and EPC Band B+ properties (£50 off). The multi-dwelling discount requires common ownership and management control, contiguous properties in the same block or building, and applications made at the same time; it applies to the second and later properties. Croydon also runs borough-wide additional HMO licensing (£1,250) alongside the permanent mandatory HMO scheme.

Lewisham — Operates a borough-wide selective licensing scheme. Fees are comparable to Croydon's range.

Southwark — Has run selective and additional licensing schemes covering significant portions of the borough.

Lambeth — Introduced selective licensing in designated wards with schemes targeting areas of high housing demand and poor conditions.

The pattern across south London is clear: boroughs with large private rented sectors and evidence of housing hazards are increasingly turning to licensing as an enforcement and monitoring tool.

How Costs Compare

Selective licensing fees across London typically range from £500 to £900 for a five-year term. Where a council uses split payments, Part A covers application processing and Part B is payable at the grant stage. Croydon requires Part A on submission and Part B after it decides to grant the licence, before the final licence is issued.

HMO licensing fees are higher everywhere, reflecting the additional compliance requirements for multi-occupant properties. Mandatory HMO fees in London commonly run to £1,000–£1,500 for a standard five-bedroom property, with some boroughs charging per room and others using flat rates.

Croydon's fees sit mid-range for London. The accreditation and multi-dwelling discounts offer savings for eligible landlords with accepted accreditation or membership and for qualifying second or later properties in the same block.

What This Means for Multi-Borough Landlords

If you own properties across several London boroughs, each property is subject to the licensing requirements of the borough it sits in. There is no London-wide licence — each borough operates independently.

Practical implications:

• Check every borough separately — a property that does not need a selective licence in one borough may need one in the neighbouring borough if it falls within a designated area
• Fees vary — budget for each borough's fee schedule individually
• Conditions differ — one borough's licence conditions may require different documentation or management standards than another's
• Accreditation helps everywhere — LLAS accreditation is recognised across London boroughs, and many offer fee discounts for accredited landlords

The National PRS Database (Coming 2027)

Alongside local licensing, the Renters' Rights Act 2025 introduces a national Private Rented Sector Database. For London landlords, the registration window opens on 15 July 2027 with a mandatory deadline of 14 October 2027. The annual registration fee is £65 per property.

The national database is a separate requirement — it does not replace local licensing. A Croydon landlord will need both a local property licence and a national database registration once the system goes live.

For Croydon-specific licensing details, see our complete Croydon landlord licensing guide.

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