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Charity Hire of Premises Agreement UK Guide

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Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Charities often find themselves on both sides of a premises hire arrangement. Sometimes the charity opens up its hall, meeting rooms or grounds to community groups, private hirers or other organisations. Other times the charity itself needs space, perhaps for a fundraiser, a training day or a one off event. Either way, the arrangement needs to be written down properly. A verbal promise and a diary entry will not protect trustees if something goes wrong, and trustees have a legal duty to act in the best interests of the charity. This guide walks through what a hire of premises agreement typically covers, why the detail matters, and the practical points trustees should think about before signing. It is written for charity trustees, administrators and anyone who finds themselves responsible for venue bookings on behalf of a registered charity or charitable organisation in England and Wales.

What this document is

A charity hire of premises agreement is a written contract that sets out the terms on which space is made available for temporary use. It differs from a lease or a tenancy because the hirer gains permission to use the premises for a defined purpose and period, rather than exclusive possession of the property.

Think of a church hall booked for a yoga class on Tuesday evenings, or a community centre hired for a birthday party on a Saturday afternoon. The document records who the parties are, what space is included, when the hirer can be there, what they are paying, and what each side is responsible for.

It will usually deal with insurance, damage, cancellation, licensing restrictions (for example around alcohol or amplified music), safeguarding if children or vulnerable adults are present, and how the arrangement can be ended. Two variants are common: one where the charity is the owner letting space out, and one where the charity is the hirer using someone else's venue. The risks, and therefore the clauses that matter most, differ depending on which side you are on.

How to use this document

  1. Identify the parties and the premises clearly. Name the charity in full, including its registered charity number, and identify the other party with their legal status (individual, company, unincorporated group). Describe the space being hired with enough precision that there is no ambiguity. A vague reference to 'the hall' can cause disputes if the hirer expected access to the kitchen, car park or outdoor area.
  2. Pin down dates, times and access arrangements. Set out the exact hire period, including any set up and clear down time. Specify who holds keys, how access is granted, and whether the hirer can use the space outside the booked hours. For block bookings, list the recurring dates or attach a schedule so there is a single source of truth for when the space is reserved.
  3. Agree the fee and payment terms in writing. State the hire fee, any deposit, when payment is due, and what happens if payment is late or the booking is cancelled. Charities should think carefully about deposits for potentially higher risk events, and about refund policies. Clear terms here prevent arguments and help trustees demonstrate they have managed charity funds responsibly.
  4. Deal with responsibilities, insurance and conduct. Cover who is responsible for health and safety during the hire, what the hirer must do about insurance (public liability cover is commonly required), restrictions on the activities that can take place, noise, numbers of attendees, and rules on alcohol, smoking or cooking. Include safeguarding requirements where children or vulnerable adults may be present.
  5. Include termination, indemnity and damage provisions. Explain how either side can end the arrangement, what notice is needed, and what happens to payments already made. Make clear that the hirer is liable for damage caused during their use, and that the charity reserves the right to refuse or cancel bookings in defined circumstances, for example where the intended use would be inconsistent with the charity's purposes.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £149.

Common questions

Q Is a written agreement really necessary for a one off hire?
It is strongly advisable, even for a single booking. Without something in writing, there is no clear record of what was agreed on price, times, responsibilities or cancellation. If damage occurs or a dispute arises, trustees may struggle to show they acted reasonably. A short, well drafted hire agreement protects the charity and the hirer equally, and takes very little time to complete once you have a template you trust.
Q Does hiring out premises affect a charity's tax position?
It can do. Letting out space for purposes unrelated to the charity's objects may generate non primary purpose trading income, which has tax and VAT implications depending on scale and structure. Some charities set up a trading subsidiary for this reason. If your charity is beginning to hire out premises regularly or for significant sums, it is worth taking specific guidance before the arrangement grows, because restructuring later is harder than planning upfront.
Q Should we require the hirer to have their own insurance?
In most cases, yes. Public liability insurance covers claims by third parties injured or whose property is damaged during the hire. Many charities ask to see a copy of the hirer's policy, or provide cover under the charity's own policy and build the cost into the fee. The right approach depends on the type of activity, the risks involved, and what your existing insurance permits. Check with your insurer if you are unsure.
Q Can a charity refuse to hire out its premises to certain groups?
A charity can refuse bookings that would conflict with its charitable purposes, breach its policies, or cause reputational harm. However, decisions must not be discriminatory under the Equality Act 2010. Trustees should set out clear, objective criteria for accepting or refusing bookings and apply them consistently. If the hire agreement reserves the right to refuse on defined grounds, it becomes easier to turn down problematic requests without dispute.
Q What is the difference between a hire agreement and a lease?
A hire agreement gives permission to use space for a limited purpose and time, without granting exclusive possession. A lease grants exclusive possession and typically creates greater legal rights for the tenant, including potential security of tenure under the Landlord and Tenant Act 1954 for business tenancies. Getting this distinction wrong can have serious consequences, so if arrangements start looking like long term exclusive use, get proper advice before signing.
Q Who is responsible if someone is injured during the hire?
It depends on the cause of the injury and what the agreement says. The charity remains responsible for the safety of the premises themselves, including structural issues and fixed equipment. The hirer is usually responsible for the way they run their activity and supervise their attendees. A good hire agreement allocates these responsibilities clearly and requires the hirer to hold appropriate insurance so that claims can be met.
Q Do trustees need to approve every hire arrangement?
Not usually. Most charities delegate routine bookings to staff or a named trustee under an agreed policy, reserving trustee approval for larger or more unusual arrangements. The key is having a clear policy that sets out who can authorise what, standard terms that are always used, and a process for escalating anything outside the norm. This protects trustees and keeps day to day operations manageable.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £149.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.