Residential lets
A residential let is any arrangement in which a landlord grants a tenant the right to occupy a property as their home, in return for rent. Under HMRC guidance, a "let" takes its ordinary meaning: granting temporary possession in consideration of rent or hire. Once a let is residential, meaning the occupier uses the property as their only or main home, the landlord enters a body of statutory obligations that does not apply to commercial lettings.
Types of residential let
Most private residential lets in England fall into one of three categories.
A long let is a letting of six months or longer, typically under a tenancy agreement. Before 1 May 2026, the standard vehicle was the Assured Shorthold Tenancy (AST). From that date, the Renters' Rights Act 2025 abolished fixed-term ASTs and replaced them with assured periodic tenancies, rolling monthly arrangements that cannot be ended by the landlord without a statutory ground. This is now the default framework for virtually all new private residential lets in England.
An HMO let (House in Multiple Occupation) arises where three or more unrelated tenants share facilities such as a kitchen or bathroom. HMO lets carry additional licensing and management obligations beyond those that apply to standard residential lets.
A lodger arrangement is not strictly a tenancy. If you let a furnished room in your own home and share living accommodation with the occupier, you are a resident landlord and the occupier is a licensee, not a tenant. Different rules apply: see our entry on live-in landlord arrangements.
Residential vs commercial lettings
The distinction matters because residential occupiers receive statutory protections that commercial tenants do not. Once a let qualifies as residential under the Housing Act 1988, the landlord cannot simply rely on a contractual agreement to end it, possession requires either mutual agreement or a court order made on a specific ground. Commercial tenants, by contrast, are governed by the Landlord and Tenant Act 1954 and common law, with no equivalent security of tenure framework.
What entering a residential let requires
When you let a property residentially, a set of obligations attach from the outset. Under the Landlord and Tenant Act 1985, you must keep the structure, exterior, and key installations (heating, hot water, gas, electricity, sanitation) in repair. You must provide a gas safety certificate, an EICR, an EPC, and the government's How to Rent guide. You must carry out right to rent checks on all adult occupiers before the tenancy begins. From working with self-managing landlords across the UK, we consistently find that the obligations attached at the start of a let are the ones most often missed, particularly the written prescribed information that must be served at the outset for a deposit to be validly protected.
August tracks compliance obligations automatically so you always know what is outstanding at the start and during a residential let.
The legal framework that governs residential lets
The full tenancy framework, including assured periodic tenancy rules, Section 8 possession grounds, rent increase procedures under Section 13, and the impact of the Renters' Rights Act 2025, is covered in our entry on residential tenancies.
Advertising and letting the property
Once you have confirmed a property is suitable to let, the practical first step is marketing. Our guide to the best websites to advertise a rental property covers the major portals used by self-managing landlords in the UK. Before signing a tenancy agreement, we also recommend reviewing our guide to what a tenancy agreement should cover to make sure nothing is omitted.
Statutory context
Residential lets in England are primarily governed by the Housing Act 1988 (as amended by the Renters' Rights Act 2025), the Landlord and Tenant Act 1985, and the Housing Act 2004. The Renters' Rights Act came into force on 1 May 2026. Fixed-term ASTs no longer exist for new lets; all new private residential tenancies begin as assured periodic tenancies under the amended assured tenancy framework. Landlords who do not understand this shift risk serving defective notices and losing possession applications.
In our experience supporting landlords through the Renters' Rights Act transition, the most common source of confusion is the assumption that a fixed-term agreement can still be offered at the outset of a let. It cannot. Every new residential let in England from 1 May 2026 begins as a monthly periodic tenancy by operation of statute.
Frequently asked questions
What is the difference between a residential let and a commercial let?
A residential let is one where the occupier uses the property as their home. A commercial let is one where the occupier uses the property for business purposes. The distinction determines which statutory framework governs the arrangement: residential lets fall under the Housing Act 1988 and the Renters' Rights Act 2025; commercial lets are governed primarily by the Landlord and Tenant Act 1954. Rights of possession and rent review are handled very differently under the two regimes.
Do I need a buy-to-let mortgage to let a property residentially?
If the property is currently on a residential mortgage, you will need either to remortgage to a buy-to-let product or to obtain consent to let from your lender before letting it out. Letting without the correct mortgage in place is a breach of your mortgage conditions and, in serious cases, can allow the lender to demand immediate repayment.
What tenancy agreement should I use for a residential let?
From 1 May 2026, all new private residential lets in England must begin as assured periodic tenancies. No fixed-term tenancy agreement can be used for a new standard residential let. The agreement must reflect the periodic structure, include the prescribed information required by the Renters' Rights Act, and comply with the Tenant Fees Act 2019 on prohibited payments and deposit caps.
