Yes, almost all private rented properties in Croydon need to be licensed. There are very few exemptions.
You will need a licence if you rent your property to a single family or individual as Croydon Council have implemented a selective licensing scheme that came into force on 1 October 2015 and lasts for five years until 30 September 2020. There are very few exemptions.
If you rent your property as a House in Multiple Occupation, the answer is slightly more complicated. Whilst Croydon Council’s additional licensing schemes have ended, some HMOs will need a licence under the selective licensing scheme and some are covered under the mandatory HMO licensing scheme that applies across England and Wales.
If you think you may need a licence, you now need to decide which one. We will try to help you choose the right licence for your property.
1. Mandatory HMO licence
You will need a mandatory HMO licence if your property:
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Is three or more storeys high (a storey includes a basement, loft conversion and any storey comprising business premises); and
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Contains five or more people in two or more households; and
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Contains shared facilities such as a kitchen, bathroom or toilet.
Following a recent government announcement, the mandatory HMO licensing criteria look set to change in April 2018 bringing thousands more properties within the scope of licensing. It is important to keep up to date as these changes could impact on you. You can sign up to our free newsletter for all the latest news.
2. Selective Licence
You will need a selective licence if your property (house or flat) is let out to a single person, couple or single household anywhere in the borough.
Selective licences are also needed for most HMOs and this is where is gets more complicated. Croydon Council says that selective licensing applies to all HMOs not already covered by the mandatory HMO licensing scheme. They may be right and the easiest thing is to apply for a licence to make sure you are covered.
But there is also another legal interpretation that suggests some HMOs may be exempt. It’s a bit longwinded so unless you are really interested you may want to skip this part!
Under section 79(2)(b) of the Housing Act 2004, selective licensing only applies to a property if the whole of it is occupied either:
(i) under a single tenancy or licence; or
(ii) under two or more tenancies or licences in respect of different dwellings contained within it.
So under section 79(2)(b)(i), if your property is let on one tenancy to people not all related to each other (e.g. a house share), it is a House in Multiple Occupation that will need to be licensed under the selective licensing scheme.
The meaning of section 79(2)(b)(ii) is more difficult to follow. If your property is let on two or more tenancies or licences, it will need a selective licence if each one relates to a different dwelling contained within it. But what is the definition of a dwelling? Well, it certainly includes self-contained accommodation but does it include a room with shared facilities? The simplest option is to apply for a selective licence for all HMOs that fall outside the mandatory HMO licensing scheme, or seek independent legal advice on your options.
Ultimately, only the Courts can interpret the law and unless this issue is ever tested in court, we may never know for sure. If you want to share your thoughts on this we would love to hear from you via our contact form.
3. Additional licence
Whilst Croydon’s additional licensing schemes have ended, we felt this is still worth a mention as some landlords may still have licences issued under the old schemes, and those licences will remain in force until the expiry date on the licence.
The 2010 Designation
This additional licensing scheme ran for five years from 24 August 2010 until 23 August 2015. It applied to all properties that were let out as HMOs and were not already covered by the mandatory HMO licensing scheme.
It applied in the council wards of Addiscombe, Ashburton, Bensham Manor, Broad Green, Coulston East, Coulston West, Croham, Fairfield, Heathfield, Kenley, Norbury, Purley, Sanderstead, Selhurst, South Norwood, Thornton Heath, Upper Norwood, Waddon, West Thornton and Woodside wards. In practice it covered most of the borough.
The 2014 Designation
On 1 August 2014, Croydon Council introduced another additional licensing scheme covering all HMOs in the borough. The scheme designation said it was due to run until 30 June 2019 although the council have told us the document was wrong. They say that the scheme was only ever intended to extend the existing additional licensing scheme borough wide for the remainder of the original licensing period i.e. until 23 August 2015. So it only lasted for just over a year.
Remember that if you do manage an HMO, it may still need a licence under the mandatory HMO or selective licensing scheme, even though the additional licensing schemes have ended.
