Additional HMO licensing in Croydon
Yes. Croydon operates an additional HMO licensing scheme. Letting a covered property without a licence risks a civil penalty of up to £40,000 and a rent repayment order of up to two years' rent.
Common questions
Do I need an additional HMO licence in Croydon?
Yes. Croydon operates an additional HMO licensing scheme. Letting a covered property without a licence risks a civil penalty of up to £40,000 and a rent repayment order of up to two years' rent.
Which areas of Croydon does the scheme cover?
Borough-wide, all 28 wards. Designated 25 March 2026, commences 1 September 2026. Confirm a specific address against the council's own designation map before applying.
When does Croydon's scheme end?
The designation runs until 1 September 2031, unless the council revokes it earlier under section 84 of the Housing Act 2004.
What does the licence cost?
£1,250. Councils commonly discount for accredited landlords and early applications; confirm the current figure with Croydon before budgeting.
Paid in two parts — one on application, the balance before the licence is issued.
| Part A | £750 |
| Part B | £500 |
| Total | £1,250 |
- Discounts: EPC B or above £50 off Part B, accredited £100 off Part B
Croydon, read 28 August 2026
What the designation says
Croydon Council designated a borough-wide additional HMO licensing scheme on 25 March 2026 under section 56 of the Housing Act 2004. It comes into force on 1 September 2026 and runs for five years. It covers smaller HMOs occupied by three or more people forming two or more households that are not already caught by mandatory licensing. A property holding a mandatory HMO licence does not also need an additional licence. SOURCE CONFLICT — WE FOLLOW THE INSTRUMENT. Croydon's additional HMO licensing designation under section 56 of the Housing Act 2004 states that the designation "is made on 25 March 2026 and shall come into force on 1st September 2026", ceasing 1 September 2031. Croydon's own website states 25 September 2026 on two separate landlord pages. The council contradicts its own instrument. We publish the instrument date, 1 September 2026, because a designation takes effect on the date the notice specifies and not on the date a summary page repeats. A landlord should hold a licence by 1 September 2026 to be compliant under either reading — the earlier date is the safe one, and being licensed early carries no penalty while being licensed late carries a civil penalty of up to £40,000 and a rent repayment order. Section 21 was abolished on 1 May 2026; possession now runs through the amended section 8 grounds. The £40,000 ceiling applies to offences committed on or after 1 May 2026; the £30,000 ceiling still applies to offences committed before that date.
What this means for a landlord
A licence must be in place before the property is let, not applied for afterwards. Operating unlicensed in a designated area is a criminal offence: a civil penalty of up to £40,000 per offence and a rent repayment order of up to two years' rent. Both maxima apply to conduct on or after 1 May 2026; before that date they were £30,000 and twelve months. Section 21 was abolished on 1 May 2026 and possession now runs through the amended section 8 grounds. Mandatory HMO licensing applies separately and everywhere, wherever a property is let to five or more people forming two or more households.
Information tool, not legal advice. Confirm the position with Croydon before letting.