Croydon’s New Licensing Schemes: What London Landlords Must Do Now to Avoid Risk

Croydon’s Bold Move: Two New Licensing Schemes for Private Landlords

Croydon Council is rolling out two significant private rented sector (PRS) licensing schemes, effective from 1 September 2026, each lasting five years. The first is a selective licensing scheme covering roughly 72.5% of private rented homes across 14 wards. The second is an additional licensing scheme targeting smaller Houses in Multiple Occupation (HMOs) not governed by existing national licensing rules.

These schemes are designed to elevate property standards by requiring landlords to obtain licences and comply with clearly defined conditions regarding property condition, safety, and management. Importantly, the council will enforce these through a targeted inspection programme, focusing on properties with poor conditions or known hazards.

Who Is Affected? Understanding Your Portfolio’s Exposure

• Single-unit landlords: If your property is in one of the 14 designated wards and privately rented, it likely falls under the selective licensing scheme.
• HMO landlords: Smaller HMOs not meeting national licensing thresholds (e.g., those with fewer occupants or rooms) will now require additional licensing.
• Portfolio landlords: Those owning multiple properties in Croydon should undertake an urgent mapping exercise to identify which units fall within the schemes.
• Accidental landlords: Even landlords with only one or two properties must assess whether they are caught by these new rules.

Currently, precise ward boundaries and lists are published on Croydon Council's website and should be the first port of call for verification.

Compliance Requirements and Inspection Regime

Obtaining a licence goes beyond paperwork: landlords must ensure that their properties meet minimum standards relating to:

• Condition: No significant disrepair, damp, or structural defects.
• Safety: Compliance with fire safety measures, gas safety certificates, electrical inspections, and any other prescribed safety protocols.
• Management: Effective tenancy management to prevent anti-social behaviour and ensure tenant welfare.

The licences will last for five years, meaning landlords must maintain these standards throughout the licence period, not just at the point of application.

Croydon Council’s targeted inspections will likely prioritise properties previously flagged for issues or complaints, increasing the risk of penalties for non-compliance.

Financial and Operational Implications

• Licence fees and costs: Landlords should budget for licensing fees (details will be available from the council) and potential costs associated with bringing properties up to standard.
• Penalties: Failure to secure a licence or comply with conditions can result in enforcement notices, fines, or prosecution, posing a material risk to rental income and capital value.
• Operational impact: Increased inspections and compliance demands may require landlords to enhance record-keeping and tenant communication protocols.

Recommended Next Steps for Landlords

1. Map your Croydon portfolio to identify properties affected by the selective or additional licensing schemes.
2. Review each property’s condition, safety, and management practices now to identify and address any deficits well before the September 2026 deadline.
3. Prepare licence applications early, allowing time to resolve any compliance issues flagged during pre-application inspections or reviews.
4. Document all maintenance, safety checks, and management actions meticulously to demonstrate compliance across the licence term.
5. Engage legal or compliance specialists if uncertain about specific requirements or to assist with the licence application process.
6. Communicate proactively with tenants about the forthcoming changes to reinforce your commitment to safe, well-managed homes.

Mitigating Risk Through Strategic Planning

Given the scale and duration of these licensing schemes, landlords with multiple properties should consider:

• Incorporating Croydon licensing compliance into their regular operational workflows.
• Budgeting annually for compliance-related works and fees.
• Reviewing insurance policies to confirm coverage aligns with the new licensing framework.

For accidental landlords and smaller landlords unfamiliar with licensing regimes, early engagement with professional advisors can prevent costly mistakes.

How Rentals & Sales Can Support You

Our team offers comprehensive portfolio reviews, compliance audits, and licensing application support targeted at Croydon landlords. We help ensure your properties meet Croydon Council’s standards, prepare inspection-ready documentation, and optimise your pricing strategy to reflect compliance costs. Contact us to schedule a tailored consultation and safeguard your investment against emerging regulatory risks.

Compliance Disclaimer: This article provides a summary of Croydon Council’s licensing schemes as of June 2024. While we strive for accuracy, landlords should consult official council sources and legal advisors for definitive guidance.