The resident landlord exemption — three conditions that must all be met
Schedule 1, paragraph 10 of the Housing Act 1988 excludes from the assured tenancy framework any tenancy where all three conditions are satisfied: the building is not a purpose-built block of flats; the landlord occupies another dwelling in the same building; and that building is the landlord's only or principal home.
- Condition 1 — not a purpose-built block of flats: the building must have been converted rather than built as a block of separate self-contained flats; a Victorian terraced house converted to flats qualifies
- Condition 2 — same building: the landlord must occupy another dwelling in the same physical building — not adjacent, not next door
- Condition 3 — only or principal home: the building must be the landlord's primary residence; courts look at where the landlord sleeps, keeps possessions, and is registered to vote
- Effect: the tenancy is a common law tenancy; Section 21 and Section 8 do not apply; possession is by notice to quit and court claim
Notice to quit — recovering possession as a resident landlord
Where the resident landlord exemption applies, the landlord recovers possession by serving a valid notice to quit on the occupier and, if the occupier remains after the notice expires, issuing a possession claim in the County Court.
- Minimum 4 weeks' notice under Protection from Eviction Act 1977 s.5, expiring at the end of a period of the tenancy
- Notice must be in writing and include the prescribed information under the Notices to Quit (Prescribed Information) Regulations 1988 (reference to occupier's right to free legal advice)
- After the notice expires and if the occupier remains: issue a possession claim in the County Court — no mandatory/discretionary grounds need to be satisfied
- Some excluded occupiers (lodgers sharing facilities with the landlord) can be excluded peaceably — but legal advice should always be taken before changing locks
What happens when the landlord moves out — the 28-day transition rule
Where a landlord initially satisfies the exemption conditions but subsequently ceases to occupy the building as their only or principal home, Schedule 1 para 10(4) HA 1988 gives the landlord 28 days to return.
- If the landlord returns within 28 days of ceasing to occupy: the exemption is restored and the tenancy remains a common law tenancy
- If the landlord does not return within 28 days: the tenancy converts to an assured tenancy (or from 1 May 2026, a periodic assured tenancy under the RRA 2025 regime)
- Once the tenancy converts to an AST: the occupier has full statutory protection and the landlord must use possession grounds; there is no mechanism to revert to excluded occupier status
- Common trap: a landlord who lets a room and then permanently moves out loses the exemption — always seek legal advice before moving out of a property where rooms are let
Resident landlords and mandatory HMO licensing
The resident landlord exemption from the AST regime does not exempt the property from mandatory HMO licensing if the occupancy threshold is met. A property with the resident landlord plus 4 unrelated tenants (5 persons, 5 households) requires a mandatory HMO licence.
- The mandatory HMO licensing threshold (5+ persons, 2+ households, no storey requirement since October 2018) applies regardless of whether the landlord is resident
- Some additional and selective licensing schemes exempt properties with a resident landlord below the mandatory threshold — but this varies by scheme
- Resident landlords should use correctly-drafted lodger agreements (not AST forms) that reflect the excluded occupancy status
- Keep records of occupation as principal home: utility bills, voter registration, correspondence — essential if the exemption is ever challenged