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Lodger Agreement UK: Licence to Occupy Guide

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Part ofUK Property Law Guide

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
If you own your home and want to rent out a spare room, a licence to occupy, often called a lodger agreement, is usually the right paperwork. It sits in a different legal category from a tenancy. A lodger shares living space with you, the owner, which means they do not get the same rights as a tenant with their own self-contained flat. That distinction matters when it comes to notice periods, privacy, and ending the arrangement. This page walks through what a lodger agreement does, when it suits your situation, and the key terms to think about before putting one in writing. If you would rather talk it through with someone who handles these questions regularly, you can book a call with an experienced legal adviser further down the page.

What this document is

A licence to occupy is a written agreement giving someone permission to live in part of your home, typically a bedroom with shared use of the kitchen and bathroom. The person staying with you is called a lodger, not a tenant.

The practical difference is significant. Because you, as the homeowner, continue to live on the same premises and share facilities, the lodger has what is known as excluded occupier status under the Protection from Eviction Act 1977. That means you can ask them to leave by giving reasonable notice, without needing a court order, provided the notice period in the agreement is fair.

A lodger agreement sets out the rent, the length of stay, house rules, deposit arrangements if any, and how either side can end the arrangement. It does not create an assured shorthold tenancy, so the rules that apply to buy-to-let landlords, such as deposit protection schemes and section 21 notices, generally do not apply here. The document should be clear and signed by both parties before the lodger moves in.

How to use this document

  1. Work out whether a lodger arrangement is right for you. A licence to occupy only works if the person will be living in your own home and sharing space with you. If the property is separate, or you will not be living there, you likely need a tenancy agreement instead. Getting this wrong can cause real problems later.
  2. Agree the commercial terms before writing anything down. Decide on the weekly or monthly rent, what it includes such as bills, council tax, internet, and whether you will take a deposit. Think about house rules, overnight guests, cleaning duties, quiet hours, and use of shared areas. These conversations are easier before someone moves in.
  3. Put the agreement in writing and cover the essentials. Your document should name both parties, describe the room and any shared areas, state the rent and payment dates, set the notice period for ending the arrangement, and list the house rules. A written record protects both sides if disagreements come up later.
  4. Check your own obligations as the homeowner. If you have a mortgage, your lender may need to be told. If you rent the property yourself, your landlord usually needs to consent before you can take in a lodger. You should also check your home insurance policy and consider the tax position under the Rent a Room scheme run by HMRC.
  5. Sign, keep copies, and keep communication open. Both you and the lodger should sign and date the agreement and hold a copy each. Keep a record of rent payments. If the arrangement needs to end, follow the notice period in the document and put the notice in writing so there is no dispute about dates.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Common questions

Q What is the difference between a lodger and a tenant?
A lodger lives in the same property as the owner and shares living space such as the kitchen or bathroom. A tenant has exclusive use of a self-contained property or part of one. The distinction affects legal rights significantly. Lodgers have fewer statutory protections, which is why homeowners renting out a spare room use a licence to occupy rather than a tenancy agreement.
Q How much notice do I need to give a lodger to leave?
The notice period should be set out in the agreement itself. A common approach is to mirror the rent period, so monthly rent means a month's notice. Because a lodger is an excluded occupier, you do not usually need a court order to end the arrangement, but the notice you give should still be reasonable and in writing.
Q Do I need to protect a lodger's deposit in a government scheme?
No. The deposit protection rules under the Housing Act 2004 apply to assured shorthold tenancies, not to lodger arrangements. That said, you should still hold any deposit carefully, make clear in the agreement what it covers, and return it promptly at the end of the stay minus any fair deductions you have evidenced.
Q Do I need my mortgage lender's permission to take in a lodger?
In most cases, yes. Residential mortgages often include terms requiring you to notify the lender or get consent before letting out part of the property. Failing to do so could breach your mortgage conditions. Check your mortgage documents or contact your lender directly. If you rent the property, you will also need your landlord's permission.
Q Is rent from a lodger taxable?
It can be, but HMRC runs the Rent a Room scheme which lets homeowners earn rental income from a lodger up to a set annual threshold tax-free. If you earn above the threshold, you pay tax on the excess or can choose a different method of calculation. Check gov.uk for the current threshold and how to claim the relief.
Q Can I enter the lodger's room whenever I want?
Because the lodger does not have exclusive possession, you have more access rights than you would with a tenant. Even so, it is good practice, and usually set out in the agreement, to give reasonable notice before entering the room except in an emergency. Respecting privacy helps keep the arrangement working well for both sides.
Q What happens if the lodger refuses to leave after notice?
For excluded occupiers, you generally do not need a court order to end the arrangement, and once proper notice has expired you can change the locks when the lodger is out, provided you do so without violence or harassment. This is a sensitive area though, and if you are unsure it is worth talking through your specific situation before acting.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

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.