Selective Licensing Coming to Croydon???
What Is Selective Licensing:
Selective licensing is a scheme introduced by local councils that requires private landlords to obtain a licence before renting out a property in specific areas.
It applies to privately rented homes and is used by councils to improve housing standards and tackle issues such as poor property conditions, anti-social behaviour, and low demand in certain neighbourhoods.
When Does Selective Licensing Apply?
Selective licensing does not apply everywhere. It only applies if:
The local council has designated a specific area, and
Your rental property is located within that area
Each council sets its own rules, fees and licence conditions.
What Does a License Cover?
A selective licence typically requires the landlord to:
Meet minimum property standards
Provide valid gas safety, electrical safety and EPC certificates
Demonstrate that the landlord is a “fit and proper person”
Comply with management and maintenance requirements
Address issues linked to anti-social behaviour
Licences usually last up to five years.
What Types of Properties Are Included?
Houses and flats rented to single households
Unlike HMO licensing, selective licensing can apply to any privately rented property, regardless of the number of occupants
What Happens If You Don’t Have a License?
If your property requires a licence and you do not have one:
You may be fined up to £30,000
You could face a rent repayment order (repaying up to 12 months’ rent)
You may be unable to evict tenants using certain possession grounds
The council may take enforcement action
Why Councils Use Selective Licensing
Councils introduce selective licensing to:
Improve rental property conditions - They may inspect your property at any time.
Reduce rogue landlords
Address neighbourhood issues
Raise overall housing standards
Croydon Now Currently In A Consultation Period - Have Your Say
Croydon Council is currently in consultation to bring back the Selective Licensing Scheme
Croydon Council is currently in consultation regarding the potential reintroduction of selective licensing for privately rented properties across parts of the borough. This consultation is live and due to close shortly, meaning landlords with property in Croydon still have an opportunity to make their views known before any decision is taken.
Selective licensing, if introduced, would require landlords to obtain a licence for each rental property within designated areas, at an additional cost, alongside meeting specific management and compliance requirements.
Check out the latest update on their website https://news.croydon.gov.uk/have-your-say-on-plans-to-introduce-new-licensing-schemes-for-private-landlords/
You can submit your views and object via this link
Many London Boroughs are already operating this scheme, for example in Lewisham the selective licensing is approximately £680.00. This is exactly why you might want to make your view count. Furthermore Croydon implemented this same scheme in 2015, it was rejected when the council proposed to renew it in 2020- so why are they brining it back and why did they get rid of it in the first place?
A Look Back at the Previous Scheme (2015-2020)
Many landlords (if you’ve been holding rental property for sometime) will recall that Croydon implemented a similar scheme in 2015. At the time, landlords were required to pay a substantial licence fee - around £750.00 per property, with the expectation that properties would be inspected and standards actively enforced.
In practice, however, inspections were rare. Despite holding licensed properties throughout the duration of the scheme, none of my own properties were ever inspected. After a number of years, the scheme was ultimately withdrawn, raising legitimate questions about its effectiveness, value for money and the council’s capacity to enforce it meaningfully. Just another property tax.
The scheme lasted for 5 years and the application to renew after the 5 years was rejected and Croydon Council were heavily criticised for the delivery or lack of. Croydon Borough has over 50,000 rental property’s and it is reported that only 3,473 were ever inspected and of those the inspections were said to be questionable. If you have time read the article and you’ll understand why the selective licensing scheme seems like just another tax and so it is paramount you have your say and object. Read the full article.
Why This Matters Now
If reintroduced, selective licensing would represent another financial and administrative burden for landlords at a time when profit margins are already under significant pressure. Rising mortgage costs, increased compliance obligations, taxation changes, and forthcoming reforms under the Renters’ Rights Act are already reshaping the economics of the private rented sector.
Licensing fees, when not supported by meaningful enforcement or tangible improvements, risk becoming little more than an additional cost to landlords — one that inevitably feeds into wider market pressures.
Questions That Need Answering
As part of this consultation, landlords should be asking some important questions:
How will the council realistically resource and enforce the scheme?
What assurances are there that inspections will actually take place?
How will this differ from the previous scheme that was ultimately revoked?
In a borough heavily reliant on government support, how will ongoing enforcement be funded?
Without clear answers, there is a genuine concern that selective licensing risks becoming another form of taxation rather than a tool that delivers real improvements.
Have Your Say
With the consultation period still open, I would strongly encourage all landlords with property in Croydon to engage and submit their views. This is an opportunity to influence policy before decisions are finalised.
I will be submitting my own response, drawing on direct experience of the previous scheme and raising concerns around enforcement, value, and the cumulative impact of further costs on landlords.
Final Thought
Regulation is not inherently a bad thing, but it must be proportionate, effective and deliver genuine outcomes. As landlords, it is vital that we speak up when policies risk repeating past mistakes.
If you own rental property in Croydon, now is the time to make your voice heard.
The 12-week consultation will run from Tuesday 21 October to Monday 12 January 2026, and is available on M.E.L Research’s website.
