Licence to occupy

A licence to occupy is an agreement giving someone permission to use a property or room without granting them a full tenancy or long-term security of tenure. Common examples are lodgers in your own home, short-term room licences linked to a job or course, or temporary decant accommodation.

Legally, the key idea is that a licensee has permission, not exclusive possession. They usually share living space with you or others, can be moved to a different room, and have fewer statutory rights than an assured tenant. In many cases you can end a licence by giving reasonable notice (and following any written terms) without going to court for a possession order, although you must never use violence or harassment.

From a landlord’s perspective, however, calling an agreement a “licence” does not make it one. If, in reality, the occupier has exclusive possession of a self-contained dwelling as their only or main home, a property tribunal or court may decide they actually have an assured tenancy, with full Renters’ Rights Act protection on notice, standards and redress.

Professional landlords use licences only where the arrangement genuinely fits. For example, lodgers or short-term, non-exclusive use, keep the terms clear and fair, and avoid trying to “contract out” of housing law by mislabelling tenancies as licences.

Also see our landlord blog articles.