Croydon council appoints private firm for landlord licensing schemes

Croydon council appoints private firm for landlord licensing schemes

Croydon council has begun operating selective and additional HMO licensing schemes with support from a private company handling applications and inspections, marking a significant development in local landlord regulation.

From 25 September 2026, Croydon introduced selective licensing in 14 wards and additional licensing for smaller HMOs borough-wide. The council has contracted The Oyster Partnership to assist with processing and compliance activities, while retaining enforcement responsibility.

This move reflects a growing trend among local authorities to strengthen oversight of the private rented sector, with implications for landlords and agents managing properties in Croydon.

Details of the Croydon licensing schemes and private contract

Croydon council’s new landlord licensing regime comprises two schemes: selective licensing targeting privately rented homes in specified wards, and additional licensing for HMOs with three or four occupants from multiple households. Larger HMOs with five or more occupants remain subject to mandatory licensing.

The council has engaged The Oyster Partnership, a private firm specialising in property and real estate services, under two contracts worth over £14.7 million including VAT. The firm’s role includes processing licence applications, verifying documentation, responding to landlord enquiries, and conducting property inspections as necessary.

Despite outsourcing these operational tasks, Croydon council emphasises that it retains ultimate authority over licensing decisions and enforcement actions. The council describes a dedicated team from Oyster supporting landlords and managing agents through the application process.

Context of private sector involvement in landlord licensing

Local authorities across England have increasingly sought to introduce or expand landlord licensing schemes as part of efforts to improve housing standards and tackle poor management in the private rented sector. However, resource constraints and administrative burdens have led some councils to outsource elements of scheme delivery.

Croydon’s approach of contracting a private company to handle licensing administration is notable for the scale of the financial commitment and the extent of operational involvement. While councils remain responsible for enforcement, the delegation of application processing and inspections to a third party raises questions about oversight, transparency, and cost-effectiveness.

For landlords, this development may signal more rigorous scrutiny and potentially more streamlined application procedures, but also the need to engage with a new intermediary in the licensing process.

Practical implications for landlords and letting agents

Landlords with properties in the affected Croydon wards or operating smaller HMOs must now comply with the new licensing requirements. The involvement of The Oyster Partnership means applications and inspections will be managed by an external team, which could impact communication channels and response times.

Managing agents should prepare for additional administrative steps and ensure that all documentation meets the standards required for licensing approval. The council’s assertion of retaining enforcement responsibility means that failure to comply could still result in penalties or legal action initiated by Croydon council.

Landlords should familiarise themselves with the specific conditions and standards set out in the selective and additional licensing schemes, and monitor communications from both the council and The Oyster Partnership to avoid delays or complications.

Outstanding questions and areas to monitor

The exact financial terms of the contracts with The Oyster Partnership have been disclosed, but the long-term cost-benefit and impact on licensing efficiency remain to be seen. It is unclear how the council will ensure accountability and quality control over the private firm’s work.

Landlords may also wish to watch for any changes in licensing fees, application processing times, or enforcement policies as the schemes mature. The interaction between the council and the private contractor in decision-making and dispute resolution could affect landlords’ experiences and outcomes.

Further guidance from Croydon council and updates on the operational performance of the licensing schemes will be important for landlords and agents to track.

What landlords should consider now

• Check whether your property falls within the selective licensing wards or qualifies as an additional HMO under Croydon’s schemes.
• Prepare to submit licence applications through the process managed by The Oyster Partnership, ensuring all required documents are accurate and complete.
• Maintain clear records of communications, inspections, and compliance activities to support licence applications and potential enforcement reviews.
• Stay informed about any updates from Croydon council or The Oyster Partnership regarding application procedures, fees, or compliance standards.
• Review tenancy management practices and property conditions to meet the standards expected under the new licensing regimes.

Supporting landlords through regulatory changes with TLA

The Landlord Association (TLA) offers members access to detailed compliance resources and practical guidance relevant to new licensing schemes such as Croydon’s. Through TLA membership, landlords and letting agents can review documentation requirements, track communications, and stay updated on regulatory developments affecting their portfolios.

TLA’s new property management and compliance platform, ORBIT, currently in BETA testing, is designed to help organise property records, manage rental documents, and record key actions including inspections and licence applications. This can be particularly useful for landlords navigating the complexities of local licensing regimes involving third-party administrators.

Explore TLA membership and learn more about ORBIT BETA access to support your compliance efforts during these regulatory changes.

Looking ahead, landlords in Croydon and elsewhere should anticipate further local authority initiatives to regulate the private rented sector, with potential for more partnerships involving private firms. Staying proactive in compliance and maintaining good communication with licensing bodies will be essential.

Sources: Landlord Today