Lodger

A lodger is someone who pays to occupy a room in another person's home while the owner continues to live in the same property as their only or principal residence. Because the lodger shares living accommodation, kitchen, bathroom, or living room, with the resident landlord, they are an excluded occupier under section 3A of the Protection from Eviction Act 1977, not an assured tenant. This single fact determines almost everything else about the arrangement: the lodger's rights, the notice process, and the tax treatment.

Lodger versus tenant: what the law turns on

The legal distinction between a lodger and a tenant was established in Street v Mountford [1985] AC 809, where the House of Lords held that the label placed on an arrangement is irrelevant, what matters is its substance. A tenant has exclusive possession of their accommodation: the landlord cannot enter without permission and the occupier has the legal right to exclude everyone, including the owner. A lodger does not. The key distinction from an assured tenancy is that a lodger does not have exclusive possession of any part of the property, the resident landlord retains the right to access all areas, including the lodger's room, with reasonable notice. Shared use of at least one room (kitchen or bathroom is sufficient) and residence of the owner in the same property are the two conditions that create a lodger arrangement rather than a tenancy.

This means a landlord cannot create a lodger arrangement by simply labelling an agreement a "licence" if the reality is that the occupier has exclusive possession and the landlord does not live there. Courts will look at the facts.

What rights a lodger has and what they do not

Because a lodger is an excluded occupier, many of the protections that apply to standard private tenancies in England do not apply. Specifically: the statutory possession procedure under the Housing Act 1988 and the Renters' Rights Act 2025 does not apply; deposit protection in a government-approved scheme is not legally required (though it is good practice); the formal Section 8 notice grounds do not apply; and the Renters' Rights Act 2025's periodic tenancy and grounds regime applies to assured tenancies, not to lodger arrangements.

What does apply: the resident landlord still owes the lodger duties under health and safety law, including gas safety obligations and electrical safety, and must not harass or illegally evict the lodger. The Protection from Eviction Act 1977's criminal offences of unlawful eviction and harassment apply to all residential occupiers, including lodgers, even though the court order requirement does not. Violence or threats used to recover possession are a criminal offence regardless of the lodger's legal status.

Ending a lodger arrangement

The resident landlord can end the arrangement without a court order by giving the lodger reasonable notice. What is reasonable depends on the circumstances and the terms of any written lodger agreement, in practice, notice aligned to the rent payment period (one week for weekly payments, one month for monthly payments) is generally considered reasonable. If the lodger has a written agreement, the notice terms set out in it will usually govern. Once notice has expired, if the lodger refuses to leave, the owner can ask them to leave; they cannot use or threaten force, and if the lodger still refuses to go, the resident landlord must apply to court.

The Rent a Room scheme

Resident landlords who take in a lodger can use the Rent a Room scheme, which allows up to £7,500 of gross income from furnishing a room in your main home to be received completely tax-free in the 2026–27 tax year. If two people jointly own and occupy the property, each receives an allowance of £3,750. The threshold is gross income, rent plus any amounts the lodger pays for meals, utilities, or other services, not net profit.

If income stays below £7,500, no action is required: the exemption is automatic and there is nothing to report to HMRC unless you are already completing a Self Assessment tax return. If income exceeds £7,500, you must tell HMRC and choose between two calculation methods: paying tax only on the amount above the threshold (with no expense deductions), or opting out of the scheme and paying tax on actual profit after allowable expenses. The second method is better where expenses are high.

You do not need to be a homeowner to benefit from the scheme. Tenants can also take in a lodger under it, provided their own lease allows subletting and they occupy the property as their main home.

Homeowners who take in a lodger and need to track rent received against the £7,500 threshold can use August's rent tracking feature to log payments throughout the tax year.

Practical considerations before taking in a lodger

Several steps are worth completing before a lodger moves in. Mortgage lenders must generally be informed before a room is let, some standard residential mortgage terms require consent for subletting, even of a single room. Home insurers also need to be notified, as lodger income or the additional occupant may affect the policy. If you have been benefiting from a single-person 25% council tax discount, that discount will end when a second adult takes up residence. A written lodger agreement, setting out the rent, notice periods, house rules, and what is included, is not legally required but is strongly recommended to avoid disputes.

Where self-contained accommodation is provided, a separate annexe or flat with its own kitchen and bathroom, the occupier will usually be a tenant rather than a lodger, with full private rented sector rights. The line between the two arrangements is important: inadvertently creating an assured tenancy when you intended a lodger arrangement gives the occupant significantly stronger legal protection.

For a full guide to the Rent a Room scheme, including how the £7,500 threshold works, what counts as gross income, and the practical checklist for taking in a lodger, see our guide to taking in a lodger in 2026.

Frequently asked questions

What is the difference between a lodger and a tenant?

The legal difference turns on exclusive possession. A tenant has the right to exclude everyone from their accommodation, including the landlord, and has full assured tenancy protections. A lodger shares living accommodation with the resident owner and does not have exclusive possession, the owner retains the right to access all areas. A lodger is an excluded occupier who can be asked to leave on reasonable notice without a court order; a tenant can only be evicted through the courts citing a statutory ground for possession.

Is a family member considered a lodger?

Not automatically. The status depends on the substance of the arrangement, whether the family member pays rent, shares living accommodation with the resident owner, and whether there is an intention to create a legal occupancy arrangement. A family member who pays rent and occupies a room in a parent's or sibling's home under a clear agreement is generally a lodger. A family member who lives rent-free or whose arrangement has no commercial character is likely a licensee at will rather than a lodger, and the Rent a Room scheme would not apply.

How much can I earn from a lodger tax-free?

Under the Rent a Room scheme, up to £7,500 of gross annual income from furnishing a room in your main home is tax-free. The threshold applies to gross receipts, everything the lodger pays, including rent, utilities, and services, not net profit. Where the property is jointly owned, each owner receives a £3,750 allowance. If income stays below the threshold, no reporting is required unless you are already in Self Assessment.

Can I evict a lodger without a court order?

Yes, provided the resident landlord lives in the same property as their only or principal home and shares living accommodation with the lodger. In this situation the lodger is an excluded occupier under section 3A of the Protection from Eviction Act 1977 and can be asked to leave on reasonable notice without a court order. The landlord must not use or threaten force, and if the lodger refuses to leave after notice expires, a court application is still required. The criminal offences of harassment and unlawful eviction apply to all occupiers including lodgers.