Croydon HMO Licensing Scheme 2026

Key Points

• Croydon Council has designated the entire borough as an area for additional licensing of Houses in Multiple Occupation (HMOs) under section 56 of the Housing Act 2004.
• HMOs occupied by three or more people forming two or more households will require a licence, unless already covered by the mandatory HMO licensing scheme.
• The designation takes effect on September 1, 2026, following a cabinet decision on March 25, 2026, and lasts for five years until September 1, 2031, unless revoked earlier.
• Landlords of affected properties must obtain a licence.
• Operating an unlicensed HMO constitutes a criminal offence.
• Non-compliant landlords face prosecution and unlimited fines.
• Enforcement options include civil penalties up to £30,000, rent repayment orders for up to 12 months’ rent or benefits, and interim management orders transferring control to the council.
• Offences may lead to listing on the Greater London Authority’s Rogue Landlord and Agent Register.
• Croydon Council will maintain a public register of licensed properties, as required by law.

Croydon (South London News) April 21, 2026 – Croydon Council has confirmed a borough-wide additional licensing scheme for Houses in Multiple Occupation (HMOs), requiring landlords to license properties occupied by three or more people forming two or more households, unless exempt under mandatory schemes. The decision, made by the council cabinet on March 25, 2026, takes effect on September 1, 2026, and runs for five years until September 1, 2031. Operating without a licence will be a criminal offence, with penalties including unlimited fines, civil penalties up to £30,000, rent repayment orders, and potential listing on the Rogue Landlord and Agent Register.

What Is the New Croydon HMO Licensing Scheme?

The scheme designates the whole of the Croydon borough under section 56 of the Housing Act 2004 for additional HMO licensing.

This targets properties with three or more occupants forming two or more households not covered by mandatory licensing, which applies to larger HMOs with five or more occupants sharing facilities.

Croydon Council states that affected landlords must obtain a licence for their property. The council will maintain a public register of all licensed properties, fulfilling legal requirements.

As per the council’s announcement, the scheme aims to regulate standards across the borough.

When Does the Borough-Wide Designation Take Effect?

The cabinet approved the decision on March 25, 2026. The designation comes into force on September 1, 2026, and remains in place for five years, until September 1, 2031, unless the council revokes it sooner.

This timeline allows landlords time to prepare applications. Croydon Council has not specified application processes or fees in the initial confirmation, but standard practice involves online submissions with property inspections.

Which Properties Require a Licence Under This Scheme?

Properties qualify if occupied by three or more people forming two or more households, excluding those under mandatory HMO licensing.

Mandatory schemes cover larger HMOs, typically five-plus occupants sharing facilities like kitchens or bathrooms.

Croydon Council clarifies that licences apply unless properties already fall under mandatory rules. Landlords must check their property’s status against both schemes to avoid overlap.

What Happens If Landlords Operate Unlicensed HMOs?

Operating an unlicensed HMO will be a criminal offence. Croydon Council outlines enforcement: prosecution leading to unlimited fines; civil penalties up to £30,000; rent repayment orders requiring repayment of up to 12 months’ rent or housing benefits; and interim management orders, where the council assumes property management.

Additional consequences include entry on the Greater London Authority’s Rogue Landlord and Agent Register for serious offences. These measures deter non-compliance and protect tenants.

How Will Croydon Council Enforce the Scheme?

Enforcement follows Housing Act provisions. Prosecution carries unlimited fines via magistrates’ courts. Civil penalties offer an alternative up to £30,000 per offence, avoiding criminal records but still imposing financial burdens.

Rent repayment orders allow tenants or councils to reclaim housing costs for up to 12 months. Interim management orders let the council take control of unfit properties. The public register ensures transparency on licensed status.

Why Has Croydon Council Introduced This Scheme?

Croydon Council made the cabinet decision on March 25, 2026, to extend oversight borough-wide. The scheme addresses HMO standards, targeting unlicensed operations with three-plus occupants. It builds on existing mandatory licensing by covering smaller properties.

The five-year duration, until September 1, 2031, provides a defined period for compliance and review. Revocation remains possible if conditions change.

What Are the Exact Penalty Details for Non-Compliance?

Penalties include criminal prosecution with unlimited fines. Civil penalties reach £30,000 as an alternative. Rent repayment orders cover up to 12 months’ rent or benefits, applicable if landlords fail to license.

Interim management orders shift control to the council for safety issues. Rogue Landlord Register listings follow repeated or severe breaches, limiting future operations.

How Does This Fit Existing Croydon Housing Rules?

Croydon Council already operates licensing to raise standards and tackle rogue landlords. This additional scheme expands coverage to smaller HMOs borough-wide, complementing prior efforts.

The public register aligns with legal mandates for transparency. Enforcement powers draw from the Housing Act 2004 and related legislation.

Background of the Development

Croydon Council’s move stems from powers under section 56 of the Housing Act 2004, allowing additional licensing designations to improve HMO standards. The cabinet decision on March 25, 2026, followed consultations or assessments typical for such schemes, though specifics on prior public input are not detailed in the confirmation.

The borough-wide scope addresses concentrations of smaller HMOs not captured by mandatory licensing, which focuses on larger properties.

This aligns with national trends where councils designate areas to combat poor housing conditions, unlicensed operations, and tenant vulnerabilities. The five-year term matches standard durations, enabling periodic renewal or revocation based on outcomes.

Previous Croydon initiatives include selective licensing in parts of the borough and enforcement against rogue landlords, with historical fines and orders issued under the Housing and Planning Act 2016. The public register requirement ensures residents and landlords can verify compliance.

Predictions: How This Affects Landlords and Tenants

This development requires landlords of qualifying HMOs to apply for licences by September 1, 2026, involving fees, inspections, and compliance upgrades, which may raise operational costs passed to tenants via higher rents. Non-compliance risks criminal records, fines up to unlimited amounts or £30,000 civil penalties, rent repayments, management takeovers, and Rogue Register listings, potentially halting rental activities.

Tenants gain protections through enforced standards on safety, amenities, and management, with options to pursue rent repayments for unlicensed periods.

The public register aids informed renting choices. Landlords face administrative burdens but opportunities to demonstrate compliance, while tenants benefit from safer housing without bearing enforcement costs directly. Over five years, sustained enforcement could improve borough-wide HMO quality, influencing rental market dynamics for both groups.