HMO Licence in Croydon: Fee, Who Needs One and How to Apply

The fee, from Croydon’s own page

Council PDF ('croydon-council-hmo-mandatory-licensing-fee-structure-1st-april-2026.pdf', Version 5, implementation date 1 April 2026): 'Licence fee structure. Fee maximum £5,907. Licence issued for up to 5 years: Total Fee | Part A | Part B. Fee per habitable room (e.g. bedroom or living room): £295 | £177 | £118.' 'Licence issued for 1 year: Fee per habitable room: £201 | £177 | £24.' 'HMO Advisory visit: Total Fee £236.' Enforcement notice charge £531 + £103.50 per hazard.

Fee is per-habitable-room with no flat baseline, capped at £5,907 total; fee_new_gbp/fee_renewal_gbp report the per-room rate (£295) since there is no fixed 'base' fee -- publishers should multiply by room count up to the cap.

Croydon’s new-licence fee sits below the median of the 34 councils whose fee we could read from their own pages (£1,364). The cheapest verified is Islington at £288 and the dearest Lambeth at £2,530; fee structures differ — some charge per room or in occupancy bands, so a large HMO can cost far more than the headline figure above.

Who needs a licence in Croydon

The national rule is the same everywhere in England and Wales — gov.uk: “You must have a licence if you’re renting out a large HMO in England or Wales. Your property is defined as a large HMO if all of the following apply: it is rented to 5 or more people who form more than 1 household; some or all tenants share toilet, bathroom or kitchen facilities; at least 1 tenant pays rent (or their employer pays it for them).” … “A licence is valid for a maximum of 5 years. You must renew your licence before it runs out. You need a separate licence for each HMO you run.” Whether a smaller shared house needs a licence depends on whether the council runs an additional or selective scheme:

Additional licensing (smaller HMOs): yes. Selective and Additional HMO Licensing Schemes 2026 (see croydon.gov.uk selective-and-additional-hmo-licensing-schemes-2026 pages). Check the scheme map before letting to three or four sharers.

Selective licensing (all private lets in an area): yes. Selective Licensing Scheme 2026. Inside a selective area every private tenancy needs a licence, HMO or not.

Letting a licensable HMO without a licence is an offence; the penalties, rent repayment orders and the fee’s tax treatment are on the HMO licence in England guide.

The Croydon numbers around an HMO

• Rents: the average 4+-bedroom rent in Croydon is £2,665 a month (ONS, July 2026) against £1,581 across all sizes — rents, prices and yield in Croydon.
• EPC: 39% of EPCs lodged here in the last year were below band C, the level a rented home needs by 1 October 2030 (EPC ratings in Croydon).
• Council tax: Band D is £2,600 for 2026/27; in an HMO let room by room the landlord is usually the liable person (council tax in Croydon).

How to apply

Applications go to the council, not to a national body. Have the floor plans, gas and electrical certificates, fire-safety details and the manager’s details ready; most councils take a non-refundable first payment on submission and the balance on grant (the quote above shows where Croydon splits its fee, if it does).

Apply or check on Croydon’s site

All councils compared · Student HMOs and Ground 4A · Renters’ Rights Act rules