Additional HMO licensing scheme 2026

From 25 September 2026, Additional HMO licensing applies to all smaller House in Multiple Occupation (HMO) properties in Croydon not covered under the Mandatory HMO Licensing schemes.

Properties that need an Additional HMO licence

You will need an Additional HMO licence if your property is occupied by 3 or 4 persons comprising 2 or more households. You must apply for a licence before renting out your property, unless it is already licensed as a Mandatory House in Multiple Occupation (HMO) or is exempt.

All HMOs occupied by 5 or more people who are not living together as a single household, but share facilities, need to be licensed under the Mandatory HMO Licensing Scheme.

If your property is already licensed under a Mandatory HMO licence, you do not need an Additional HMO or Selective licence for the same property. However, if you rent out other properties, they may still require a Selective licence or Additional HMO licence.

Area covered by the Additional HMO licensing scheme

This scheme is borough wide.

Exempt properties 

The Additional HMO licensing scheme applies to all Houses in Multiple Occupation (HMO) as defined by section 254 of the Housing Act 2004 that are occupied by 3 or 4 persons comprising 2 or more households within the borough unless: 

• the house is an HMO that falls within the nationally prescribed category of HMO that is required to be licensed as a ‘mandatory HMO’ under section 55(2)(a) Part 2 of the Act1
• the house is subject to an Interim or Final Management Order under Part 4 of the Act
• the house is subject to a temporary exemption under section 62 of the Act
• the house is an HMO that is a building or part of a building that is not an HMO for the purposes of licensing under Part 2 of the Act2 Schedule 14 of the Act
• it is a building converted into self-contained flats but does not meet the standards of conversion required by the Building Regulations 1991, and where less than two thirds of the flats are owner occupied to which Section 257 of the Housing Act 2004 applies where: 
  • the building or part of a building is of 3 or more storeys that have been converted into 3 or more self-contained flats
  • both the building and self-contained flats it contains are under the same ownership or considered by the council to be effectively under the same control

How long Additional HMO licences last

Licences are granted for up to 5 years, unless there are concerns about compliance or property management that require a shorter term. The licence will remain in effect unless we revoke it.