If you let property in Croydon, there is an important date to put in your diary. From 25 September 2026, the council is introducing two new licensing schemes that will bring thousands of rental properties into scope for the first time. Having let and managed properties across this borough for over 28 years, we want every landlord we work with to be ready well before the deadline.
What Is Changing on 25 September 2026?
Croydon Council is launching a borough-wide additional HMO licensing scheme alongside a selective licensing scheme covering 14 wards. Both schemes run for up to five years.
The additional HMO scheme applies to any property shared by three or more people forming two or more households, anywhere in the borough. This catches many smaller house shares that have never needed a licence before. Larger HMOs with five or more occupants already require a mandatory licence, and that rule stays in place.
The selective scheme goes further. In the 14 designated wards, almost every privately rented home will need a licence, even a standard single let with one family living in it.
Which Wards Are Affected?
The selective licensing wards are 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. If your property sits in any of these areas, you should assume a licence is required and check your position now.
How Much Will a Licence Cost?
The council has confirmed its fees. A selective licence costs £800 per property and an additional HMO licence costs £1,250 per property. The date applications open will be announced by Croydon Council in July 2026, so there is a short window to get your paperwork in order.
What Happens If You Do Not Apply?
The penalties are serious. Letting an unlicensed property can lead to civil penalties of up to £40,000 per offence, following the increase introduced under the Renters’ Rights Act 2025. Tenants can also claim back up to 24 months of rent through a Rent Repayment Order. Councils now use council tax and tenancy data to identify unlicensed properties, and most enforcement activity tends to happen within the first few months of a scheme going live. Waiting is a risk not worth taking.
How Allen Heritage Can Help
Our lettings team has managed properties across the Croydon and Bromley boroughs since 1998, and we keep every landlord we act for on the right side of licensing rules. Whether you own one property or a full portfolio, we can check what applies to you, prepare the application and handle the council on your behalf.
Call us on 020 8777 3000 or visit our Shirley office to speak to the team before the new schemes take effect.