Sam, Hi, thanks for your note. You may have misunderstood my colleague, or we may not have explained this clearly - apologies if that was the case. The issue is not licensing in your instance, but the need for planning consent for both large and small HMO's. Here is an extract from Croydon Council's web site stating their requirement for all sizes of HMO to have planning permission for change of use: Article 4 Direction - HMO licensing On 28 January 2020, we introduced an Article 4 Direction requiring owners to seek planning permission for the change of use from a dwelling house to an HMO of any size. The definition of an HMO is a property with 3 or more people formed of 2 or more households who share basic amenities such as bathrooms and/or kitchens. https://www.croydon.gov.uk/housing/landlords/houses-multiple-occupation-hmo Unfortunately as a couple and an unrelated friend you would count as two households and, on the basis of the above, any landlord renting to you would be required to have planning permission for change of use - although a license is not necessary. This is very frustrating - a local policy intended to protect family housing is also adversely affecting younger people and the less well-off in their search for a home. I regret that we were unable to help you at this time and do hope you find somewhere suitable. Kind regards, Peter Brown, Director