Renting Out Rooms in Your Own Home: What the Law Means for You
If the owner of the property lives in it as their only or main home, they must use a Licence Agreement. An Assured Shorthold Tenancy would not be valid.
This is a situation we have often encountered when parents purchase a property for their child to live in with their friends at university.
If the owner of the property lives in it as their only or main home, a Licence Agreement, rather than an Assured Shorthold Tenancy, which would NOT be valid.
This changes the rights of the landlord and lodgers and what legislation applies.
Only or Main Home Test
The law looks at where the landlord genuinely lives as their only or main residence. There is no single rule. Courts look at evidence of real life occupation. Key factors:
– How often the landlord sleeps there.
– Where they keep most of their personal possessions.
– Where they receive post.
– Where they are registered for GP, bank, voting, insurance.
– Whether they intend to return after temporary absences.
– Whether the property is set up as their living space rather than guest space.
Courts look at the pattern, not isolated moments.
Which standard tenancy laws do NOT apply
Housing Act 1988
- No section 21.
- No section 8.
- No fixed-tenancy protections.
- No statutory grounds for possession.
- No tenancy-style rent rules.
Renters Reform Act
None of the new notice rules apply. None of the new periodic tenancy rules apply. The Act covers assured tenants, not lodgers. Licence agreements can have fixed end dates or be open ended.
Tenancy Deposit Protection
You do not protect deposits in a scheme.
How to Rent Guide
You do not provide this document.
EPC Requirements
You do not need an EPC for lodgers.
Laws that still apply to licence agreements
These duties still apply when you rent out rooms.
Gas Safety (Installation and Use) Regulations 1998
Annual gas safety check.
Gas Safe engineer.
Keep certificates.
Smoke and Carbon Monoxide Alarm Regulations 2015
Working smoke alarm on each storey.
Carbon monoxide alarm where required.
Test on move-in day.
Fix faults.
Housing Act 2004 (HHSRS)
You must keep the property safe.
You must address hazards.
Councils can inspect and enforce.
HMO Rules
You meet the HMO test if you house three or more unrelated people. Mandatory licensing applies at five or more, subject to local rules. You must follow HMO management regulations.
Electrical Safety
The 2020 EICR regulations do not apply, but you still must keep electrics safe. Repairs must be done by competent contractors.
Right to Rent
You must check immigration status for every adult. You must keep copies.
Equality Act 2010
You must avoid discrimination based on protected characteristics.
Consumer Rights Act 2015
Contract terms must be clear and fair.
Tax Rules
Income from lodgers is taxable. The Rent a Room scheme applies when criteria are met.
Smoke Free Premises Rules
If you ban smoking, the rule must be in the licence agreement.
What should be in a licence agreement?
There is no prescribed format for a licence agreement but it must include the following:
You give a licence agreement.
An AST is not valid.
A licence agreement should set out:
Names of both parties.
Full property address.
Confirmation you live there as your main home.
The room the lodger uses.
Shared areas.
Rent amount (does it include bills, council tax?).
Payment schedule.
Deposit terms.
House rules.
Start date.
Notice period.
Access rules.
Safety duties.
Right to Rent checks.
Signatures.
Ending a licence agreement
Lodgers rights are much more limited than those protected under an AST.
Step 1: Give Written Notice
Use the notice period set out in the licence; if none is written, use reasonable notice, one rental period is common. State the date the licence will end.
Step 2: Handover Plan
Confirm key return, when belongings must be removed, and any charges from the deposit.
Step 3: On the Leaving Date
Check the room, collect keys and end the agreement.
Step 4: If They Do Not Leave
If the lodger has not moved out once the notice has expired, they are an excluded occupier; you do not need a court order to evict them. You must not use force.
You take peaceful steps:
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Wait until they leave the room or the property.
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Change the locks.
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Place belongings in a safe place.
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Arrange a collection time.