Landlord Lodger UK 2026 — Complete Guide to Taking In a Lodger: Excluded Licence, Notice to Quit, and Rent-a-Room

Excluded licence vs assured shorthold tenancy — the key legal distinction

Whether a person is a lodger (excluded licence) or a tenant (AST) depends on two key factors: exclusive possession and the resident landlord status. Understanding this distinction determines the entire legal framework that applies:

• Resident landlord requirement: For the resident landlord exemption to apply, the landlord must be living in the same property as the lodger — sharing the property as their main or principal home. 'Same property' for a house means the same building; for a flat it means the same flat (not another flat in the same building). The landlord must be actually resident — not merely the owner. A landlord who moves out of the property, even temporarily, loses the resident landlord status and the arrangement may convert to an AST
• Exclusive possession: A lodger does not have exclusive possession of any part of the property — the landlord retains the right to enter the lodger's room at any time (though in practice a courteous landlord will give notice). If a lodger does have exclusive possession of a room (their own room that the landlord cannot enter without permission), the arrangement starts to look more like a tenancy. The lodger agreement should make clear that the landlord retains access to all rooms and that the lodger has a licence to occupy rather than exclusive possession
• Why the distinction matters: As an excluded licence: (1) no TDP scheme registration required for the deposit; (2) no prescribed information service required; (3) no Section 21 or Section 8 notice required to end the arrangement — only a reasonable Notice to Quit; (4) the lodger has no right to challenge rent at the First-tier Tribunal; (5) the lodger is not protected from eviction by the Protection from Eviction Act 1977 (the Act applies to residential occupiers but excluded licences have a different notice requirement). As an AST: all standard AST protections apply
• Common mistake — non-resident landlord taking in a 'lodger': A landlord who does not live in the property cannot create an excluded licence lodger arrangement. If a buy-to-let landlord (not resident in the property) takes in additional occupiers alongside the existing tenant, those additional occupiers may acquire AST rights. Only a resident landlord can create a genuine excluded lodger licence

Deposit protection — not required for excluded lodger licences

The requirement to protect deposits in a government-approved TDP scheme applies only to assured shorthold tenancies. A lodger deposit is not caught by the deposit protection regime:

• No TDP scheme registration required: A lodger deposit does not need to be held in a Tenancy Deposit Protection (TDP) scheme (DPS, Mydeposits, or TDS). The £5,000 penalty for failing to protect an AST deposit and serve prescribed information does not apply to excluded licences. The resident landlord can hold the lodger's deposit in any bank account
• No prescribed information to serve: The resident landlord does not need to serve the lodger with prescribed information about the deposit scheme, the scheme's leaflets, or the deposit amount. There is no 30-day prescribed information service obligation for lodger deposits
• Good practice — lodger deposit receipt and written terms: Although there is no legal requirement to protect the deposit, it is good practice to: (a) give the lodger a signed receipt for the deposit, stating the amount and the conditions for deduction; (b) include in the lodger agreement the specific circumstances in which the landlord may make deductions from the deposit (unpaid rent; damage beyond fair wear and tear; unpaid bills); and (c) provide a copy of the agreed lodger inventory or room condition report at the start of the arrangement
• Returning the deposit on departure: Without a TDP scheme, there is no scheme adjudication available if a dispute arises about deposit deductions. The resident landlord and lodger must resolve deposit disputes between themselves. The lodger can sue in the small claims court for return of the deposit, and the landlord would need to justify any deductions with evidence (receipts; photographs). A clear written lodger agreement with a deposit clause reduces the risk of dispute

Ending the lodger arrangement — Notice to Quit and eviction

The procedure for ending a lodger arrangement is significantly simpler than ending an AST, but it must be followed correctly — using Section 21 or Section 8 for a lodger is the wrong procedure:

• Notice to Quit — reasonable notice: To end a lodger arrangement, the resident landlord serves a Notice to Quit on the lodger giving 'reasonable notice'. What is 'reasonable' depends on the facts, but generally mirrors the rent payment period — typically 28 days for a monthly-paying lodger. The notice should be in writing, specify the date by which the lodger must leave, and be signed and dated. There is no prescribed form for a lodger Notice to Quit
• What happens if the lodger refuses to leave: Where a lodger refuses to leave after receiving a valid Notice to Quit and the notice period has expired, the resident landlord cannot forcibly remove the lodger. The Protection from Eviction Act 1977 requires the landlord to obtain a court order before physically removing an occupier, even from an excluded licence arrangement. The landlord must apply to the County Court for a possession order (a much faster process than for ASTs — often listed within a few weeks without the need for a full hearing)
• Do NOT use Section 21 or Section 8 for lodgers: Section 21 and Section 8 notices are procedures under the Housing Act 1988 — they apply only to assured shorthold tenancies. Serving a Section 21 or Section 8 notice on a lodger is legally incorrect. If used, it could inadvertently suggest the landlord treats the arrangement as an AST, with all the associated protections
• Lodger agreement break clause: A lodger agreement should include: (a) the notice period either party must give to end the arrangement (typically 28 days); (b) whether the landlord can end the arrangement without cause (resident landlord can always end on reasonable notice — this is the nature of the excluded licence); and (c) specific circumstances where shorter notice may be given (for example, serious breach of the agreement, illegal use of the room, violence or harassment)

Right to Rent checks, rent-a-room relief, and HMO threshold

Three additional compliance areas apply specifically to lodger arrangements in England:

• Right to Rent checks — required in England for all occupiers: The Right to Rent obligation under the Immigration Act 2014 applies to all new residential occupiers in England — including lodgers. The resident landlord must verify the lodger's Right to Rent before the lodger takes up occupation (not within 28 days — before). The same document checks apply as for AST tenancies: List A (unlimited right to remain — no follow-up needed) or List B (time-limited right — re-check required). Using the GOV.UK online Home Office checking service is mandatory for lodgers who hold a BRP or an eVisa from 31 December 2025. Failure to check Right to Rent exposes the resident landlord to the same civil penalty as a landlord of an AST (up to £20,000 per adult occupier as of 2024 rates). Right to Rent does not apply in Scotland, Wales, or Northern Ireland
• Rent-a-Room relief — up to £7,500 per year tax-free: The Rent a Room Scheme allows a resident landlord (an owner-occupier or a tenant with permission to sublet) to receive up to £7,500 per tax year in rental income from a lodger without paying income tax on it. For a jointly-owned property, each owner can receive up to £3,750 tax-free. Income above £7,500 per year is taxable as property income. The relief applies automatically if rental income is at or below the threshold — the landlord does not need to claim it separately on a tax return. Above the threshold, the landlord can elect to use the Rent a Room basis (deducting the £7,500 allowance from income rather than actual expenses) or the normal property income basis (income minus actual allowable expenses)
• HMO threshold — does taking in a lodger create an HMO?: A property becomes an HMO if it is occupied by 3 or more persons forming 2 or more households. Taking in a lodger while the landlord also shares with a family member (another household) or another lodger (third person/third household) can trigger mandatory HMO licensing if the occupier count reaches 5+ persons across 2+ households. For example: resident landlord + spouse (1 household) + lodger 1 (2nd household) + lodger 2 (3rd household) + one more person = potentially an HMO depending on total occupier count. The resident landlord should check with the local authority before taking in multiple lodgers to ensure HMO licensing requirements are not triggered

Frequently asked questions