What you need to know about Lodgers and the Law in England

Taking in a lodger can be a sensible way to earn extra income while making the most of spare space in your home. But before you offer a room, it’s important to understand the legal rules, the rights a lodger has, and your responsibilities as the homeowner.

What Exactly Is a Lodger?

A lodger is someone who rents a room in your home and who you share facilities with, such as the kitchen, bathroom, or living room.

Because you also live there, the arrangement is different from renting out a self-contained flat or house. A lodger is generally classed as a licensee, not a tenant, because they don’t have exclusive possession of any part of the property.

If you move out permanently, the lodger may gain tenancy rights so it’s important to stay resident if you wish to keep it as a lodging arrangement.

What are the differences between a lodger and a tenant?

When a homeowner takes in a lodger, they are granting a licence to use the property.

This is distinct from a tenancy in the following ways:

  • the homeowner retains control and access to the property;
  • the lodger does not have security of tenure under the Housing Act 1988; and
  • the lodger can be asked to leave on giving reasonable notice.

Reasonable notice is usually at least the length of the rent period. For example, if rent is paid monthly, then a months’ notice may be reasonable.

Key considerations for the homeowner

Agreements and Notice

Although a lodger agreement doesn’t need to be in writing, it is sensible to have a written lodger agreement.

This should include:

  • the rent amount and payment dates;
  • what is included, for example bills, Wi-Fi, council tax;
  • any house rules including which areas of the property are shared;
  • how much notice is needed to end the lodger agreement; and
  • how notice should be given.

Screening and Practical Considerations

Key steps to take when screening and selecting a lodger:

  • asking for references or proof of employment;
  • discussing house rules and expectations early on;
  • taking a deposit and providing the lodger with a receipt;
  • taking pictures of the property before the lodger moves in;
  • keeping written records of payments and communications with the lodger; and
  • checking the terms of your home insurance and mortgage provider.

Right to Rent Checks

Before allowing a lodger to move in, you must carry out Right to Rent checks under the Immigration Act 2014.

You must:

  • check and take a copy of acceptable ID; or
  • verify their status online using a Home Office “share code”.

Copies of their ID documents must be kept for at least a year after the lodger leaves.

Failure to carry out checks can result in penalties up to £5,000 per lodger, or higher for repeat breaches.

Property Safety Requirements

You must ensure your home is safe for occupation by ensuring the property has:

  • an annual Gas Safety Certificate (if applicable);
  • safe electrical installations and appliances;
  • a smoke alarm on each storey;
  • a carbon monoxide alarm in rooms with a fixed combustion appliance; and
  • reasonable fire safety measures (clear exits, extinguisher or a fire blanket).

Please note, if you have more than two lodgers the property may be a House in Multiple Occupation and you could be subject to further licensing and fire-safety obligations under the Housing Act 2004.

Evicting a Lodger

Lodgers have less protection from eviction, but an eviction must still be done peacefully.

You can ask the lodger to leave after giving proper notice. Once the notice period has expired and they’ve moved out, you can change the locks to exclude them from the property.

Even though a lodger is not a tenant, the homeowner must not use force, intimidation, or remove the lodger’s belongings from the property as this could still amount to unlawful eviction.

Tax and the Rent-a-Room Scheme

The income you receive from your lodger is taxable.

Under the Rent-a-Room Scheme you can earn up to £7,500 per year tax-free if you rent out furnished accommodation in your main home. If this income is shared between two people (for example, joint owners), the allowance is split to £3,750 each.

If the annual gross income is less than £7,500 this is applied automatically.

However, if you receive more than £7,500 you must complete a tax return where you can opt into the Rent-a-Room scheme to claim your tax-free allowance or declare your profits through self-assessment.

Next Steps

Taking in a lodger can be rewarding, but it comes with legal, tax, and safety responsibilities.

By understanding the difference between a lodger and a tenant, conducting the proper checks, and setting clear terms, you can protect yourself and set up the arrangement to run smoothly.

If problems arise or you’re unsure about notice, eviction, or licensing, seek legal advice before acting.

Jodierichards 16 (2)

Jodie Richards – Trainee Solicitor

jodie.richards@mogersdrewett.com

Mogers Drewett

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