Lodgers and the Law in England: A Comprehensive Guide for Homeowners

Taking in a lodger can be a practical way to generate additional income, but it also brings important legal responsibilities. Many homeowners are unaware that the legal status of a lodger is very different from that of a tenant, and mistakes can lead to serious legal and financial consequences.

This guide explains the key legal rules for lodgers in England, including the difference between a licence and a tenancy, eviction procedures, safety obligations, tax considerations, and how to avoid accidentally creating an Assured Shorthold Tenancy.

Table of Contents:

• What Is a Lodger?
• Licence vs Tenancy: What’s the Difference?
• The Risk of Moving Out While a Lodger Remains
• Why You Shouldn’t Just Change the Locks
• The Importance of Written Agreements and Notice Periods
• Right to Rent Checks
• Safety and Property Standards
• Tax and the Rent-a-Room Scheme
• Practical Tips for Taking in a Lodger
• Final Thoughts
• Get Expert Advice from Our Property Law Specialists

What Is a Lodger?

A lodger is someone who rents a room in your primary residence and shares common areas such as the kitchen or bathroom. To ensure the lodger is treated as a licensee (not a tenant), you must live in the property throughout their occupation. This prevents the lodger from gaining exclusive possession of the property.

Lodgers are typically classified as excluded occupiers, meaning they have fewer legal protections than tenants.

Licence vs Tenancy: What’s the Difference?

Tenants under an Assured Shorthold Tenancy (AST) have significant rights and protections under the Housing Act 1988.

Lodgers, however, occupy under a licence and do not have the same level of protection. Unlike an AST, where a landlord must serve a Section 8 or Section 21 Notice, a lodger can be asked to leave by giving reasonable notice. This usually matches the rent period (for example, one month’s notice for monthly rent).

Because lodgers are excluded occupiers, ending the arrangement is generally simpler than ending a tenancy.

The Risk of Moving Out While a Lodger Remains

If you permanently move out while your lodger continues to occupy the property, you may unintentionally create an Assured Shorthold Tenancy.

This may occur if:

• The occupier has exclusive possession of the property, and
• They pay more than £250 per year in rent.

If an AST is created through conduct, you must comply with the Housing Act 1988. This includes serving a Section 8 or Section 21 Notice, issuing possession proceedings, and obtaining a Court Order to regain possession.

To avoid this risk, do not move out while your lodger remains in occupation.

Why You Shouldn’t Just Change the Locks

Although lodgers have fewer rights than tenants, you cannot evict them without giving sufficient notice.

Changing the locks without reasonable notice may be considered illegal eviction under the Protection from Eviction Act 1977, which is a criminal offence.

Using force, intimidation, or removing a lodger’s belongings is unlawful and could result in criminal or civil action. If a lodger refuses to leave, a peaceful and lawful approach (and legal advice) is essential.

The Importance of Written Agreements and Notice Periods

While a written lodger agreement is not legally required, having one is strongly recommended because it provides clarity for both parties.

It should include:

• Rent amount and payment dates
• What is included (bills, Wi-Fi, council tax)
• House rules and use of shared spaces
• Notice period and termination terms

“Reasonable notice” will usually be the length of the rent payment period.

Right to Rent Checks

Before allowing a lodger to move in, it is essential to carry out Right to Rent checks under the Immigration Act 2014. These checks are important because they ensure that all occupants of your property have the legal right to live in the UK.

• Check and copy ID – See original documents (such as a valid passport or biometric residence permit) and confirm they belong to the lodger. Take a clear copy of the document and record the date the check was completed.
   
• Use a Home Office share code where applicable – If the lodger proves their status digitally, ask them to provide a share code and their date of birth. Use the Home Office online Right to Rent service to view their status.
   
• Keep copies for at least one year after the lodger leaves – You must retain copies of documents or online check results for the entire period of the lodger’s stay and for at least 12 months after they move out.

Failure to comply can result in fines of up to £5,000 per lodger.

Safety and Property Standards

As a homeowner taking in a lodger, you are legally responsible for ensuring that your property is safe and meets required standards.

This includes:

• Annual Gas Safety Certificate (where applicable)
• Safe electrical installations
• Smoke alarms on each storey
• Carbon monoxide alarms in rooms with combustion appliances
• Basic fire safety measures (clear exits, fire blanket or extinguisher)

If you have three or more lodgers, your property may be classed as a House in Multiple Occupation (HMO) and may require a licence. If unsure, contact your local authority or seek legal advice, as operating an unlicensed HMO can result in significant fines.

Tax and the Rent-a-Room Scheme

Income from lodgers is taxable. The Rent-a-Room Scheme allows you to earn up to £7,500 per year tax-free from furnished accommodation in your main home. If the income is shared, the allowance is split.

If your income exceeds this amount, you can opt into the scheme or declare profits through Self Assessment.

You should also check your mortgage and insurance terms, as many lenders and insurers require written consent before taking in a lodger.

Practical Tips for Taking in a Lodger

Here are some top tips from our Property Litigation specialist, Amelia Ford, to help you manage lodgers safely and legally:

• Choose lodgers carefully – Consider compatibility, lifestyle, and reliability to avoid conflicts.
• Request references or proof of employment – Verify the lodger’s background to reduce the risk of missed payments or other issues.
• Take a deposit and provide a receipt – Protect yourself financially and provide clear documentation for both parties.
• Set clear house rules – Outline expectations for shared spaces, noise, guests, and other household routines.
• Keep written records of payments and communications – Maintain an organised paper trail in case of disputes or legal questions.

Final Thoughts

Taking in a lodger can be a flexible and rewarding way to generate additional income. However, it comes with legal, tax, and safety responsibilities. Understanding the difference between a lodger and a tenant, following proper procedures, and seeking legal advice where necessary will help you avoid costly mistakes.

Get Expert Advice from Our Property Law Specialists

For expert guidance on taking in a lodger, understanding your legal responsibilities, or handling disputes, contact Amelia Ford and our Property Litigation specialists. We can provide tailored advice on lodger agreements, eviction procedures, safety compliance, and more. Call us today on 023 8063 9311 or email enquiries@warnergoodman.co.uk to speak with a member of our team.