Croydon Council tenants who agree to move out of oversized family properties will be offered brand-new kitchens, bathrooms, and a full redecoration under a new housing policy.
Croydon is launching the pilot scheme later this month to target under-occupancy of larger properties and free up family-sized homes for thousands of overcrowded households on the housing waiting list.
The policy will replace a previous scheme in which under-occupying tenants were offered cash incentives of up to £8,000, alongside help with removal and utility disconnection costs.
However, only 13 tenants agreed to relocate last year, with only seven recorded in 2026 to date.
These results prompted a consultation to better understand what would encourage households to move.
In response, participating tenants said financial incentives were not the main factor, and instead highlighted the importance of remaining within their established communities, securing high-quality accommodation and receiving hands-on support throughout relocation.
Responding to the feedback, the council’s revamped pilot will guarantee that downsizing tenants are offered replacement homes in their preferred area.
The scheme will also offer home improvements, such as new kitchens and bathrooms and decorating, alongside dedicated co-ordinators and officers providing one-to-one support throughout relocation.
The council has not yet confirmed the overall cost of the new relocation pilot, with officers saying the resources and funding required will be assessed as part of its wider Housing Improvement Plan.
The scheme will also work alongside plans to build new homes, including at Regina Road in South Norwood, as the council seeks to address pressure on the borough’s housing stock.
More than 1,000 council properties across Croydon are currently classified as under-occupied, representing roughly 8.5 per cent of the borough’s total housing stock. Properties are deemed under-occupied when they have more bedrooms than the household requires.
Elsewhere, council officers also identified 234 single tenants residing in oversized homes, with 230 of those residents being aged over 65.
Last month, the Local Democracy Reporting Service revealed that 417 council homes in Croydon were vacant and awaiting repairs.
Our report also revealed how average time taken by the council to re-let a property has risen from 130 days in 2024/25 to 206 days in the first quarter of 2026/27.
Meanwhile, pressure on the council’s housing stock remains high, with more than 8,500 households waiting for suitable accommodation.
The figure includes more than 2,100 existing council tenants living in what the council classifies as “severe overcrowding” and waiting for three or four-bedroom homes.
Out of 13,360 managed council homes in the borough, four-bedroom properties make up just 2.37 per cent, while five-bedroom units account for merely 0.24 per cent.
Alongside the new incentives, the council is considering five-year fixed-term tenancies for larger properties.
It is also exploring potential “de-conversion” schemes, which would combine two or more smaller council properties – or reverse previous subdivisions – to create larger family homes.
The new downsizing pilot scheme is due to launch at the end of October 2026, subject to formal approval.
It will be presented to the Housing Assurance Board on October 12, where councillors will scrutinise the plans and provide oversight.
