Croydon’s landlord licensing delay creates legal uncertainty

Landlords in Croydon will be unable to apply for two new property licences until the day the schemes come into force, prompting warnings about confusion and possible legal exposure.

Croydon Council has postponed the start of its additional HMO and selective licensing schemes from 1 September to 25 September 2026.

However, the council’s application system will not open until 25 September.

Its website tells landlords they will be able to apply online from that date and warns them not to attempt an application beforehand.

The decision leaves landlords unable to apply before the legal requirement is due to begin.

Delay brings uncertainty

London Property Licensing says the legal position could ultimately be determined only by a court or tribunal.

Richard Tacagni, the firm’s managing director, said: “The situation in Croydon highlights the risk of implementing a licensing scheme before all the building blocks are in place.”

He said councils should normally open applications three months before a scheme begins, allowing landlords and managing agents sufficient time to comply.

Mr Tacagni also called for ‘clear, simple and timely communication’ from councils introducing licensing requirements.

Croydon landlord speaks out

One concerned Property118.com reader, Heather, contacted us and said: “According to my understanding of the law, the licensing schemes start at midnight on the commencement date.

“This means that there is no possibility of any Croydon landlord being able to comply with the law and thus being involuntarily opened up to Civil Financial Penalties of up to £40,000, prosecution, unlimited fines, Rent Repayment Orders and the possibility of being added to the Rogue Landlord database.”

She added: “In Croydon Council’s ‘consultation’ pack they said they estimate 32,043 dwellings will require a Selective License at £800 each (a nice £25.6 million to pad their coffers).

“They were still saying on their website about 10 days ago that ‘Further information on the date from which applications for selective licences can be made will be provided in July 2026’ after Landlords had received an email from them on 18th August to inform us that the scheme’s start date has been amended to 25/9/26.

“I imagine they will say that they won’t penalise anyone who applies and pays in the first days or weeks, but technically it still makes us criminals and wouldn’t stop a tenant from pursuing a RRO.”

Croydon’s landlord licensing

Both schemes were formally designated on 25 March with the additional licensing scheme covering smaller HMOs across the borough.

Selective licensing will apply to privately rented homes in 14 wards.

The schemes were originally due to begin on 1 September and continue for five years.

However, council officers became concerned in July that Croydon would not be ready to implement them on time.

Licensing delayed

On 9 July, the council’s Regeneration Lead, in consultation with the Statutory Deputy Mayor and Cabinet Member for Homes, decided to move the schemes’ start date to 25 September.

Croydon has since published an amendment notice stating that the commencement date has been changed under authority delegated by the Cabinet.

The designated areas and other elements of the schemes remain unchanged.

Questions have now been raised about whether the Housing Act 2004 allows a council to amend the commencement date of a designation once it has been made.

Housing Act issues

The legislation contains provisions allowing councils to revoke additional and selective licensing designations.

However, it does not contain an obvious procedure allowing the date of an existing designation to be varied.

Once the schemes are in force, landlords controlling or managing a qualifying property without a licence could potentially commit an offence.

A landlord normally has a defence where a valid licence application has been duly made and remains under consideration.

Opening Croydon’s application system on the commencement date means landlords cannot obtain that protection beforehand.

Landlord penalties

That does not mean Croydon landlords will automatically receive penalties on 25 September.

A council seeking to impose a civil penalty would have to establish the offence to the criminal standard of proof and follow the statutory notice and appeal procedure.

There is also a reasonable-excuse defence.

Whether a landlord prevented from applying because the council had not opened its system could rely upon that defence would depend on the circumstances and, ultimately, the decision of a court or tribunal.