Excluded Occupier Lodger Agreement vs Assured Periodic Tenancy: How Resident Homeowners Stay Outside the Renters' Rights Act 2025

Why genuine lodgers are exempt from the Renters' Rights Act 2025

If you live in your own home in England and rent out a spare bedroom to a lodger who shares your kitchen, bathroom, or living room, the Renters' Rights Act 2025 (2025 c. 26) does not apply to your arrangement—provided your paperwork and day-to-day living setup satisfy the statutory rules for a resident landlord.

That exemption flows from two longstanding statutes that remain in full force after 1 May 2026:

1. Paragraph 10 of Schedule 1 to the Housing Act 1988 (Resident Landlords): A tenancy or occupancy cannot be an assured tenancy (and therefore cannot be an Assured Periodic Tenancy under the Renters' Rights Act 2025) if the landlord occupies another part of the same building as their only or principal home at the start of and throughout the arrangement (unless it is a purpose-built block of flats).
2. Section 3A of the Protection from Eviction Act 1977 (Excluded Tenancies and Licences): Even more importantly, where the occupier shares living accommodation (such as a kitchen, bathroom, or living room) with the resident householder (or a member of the householder's family), the occupier is an excluded occupier under section 3A(2) of the Protection from Eviction Act 1977.

However, simply writing the heading "Lodger Agreement" at the top of a piece of paper—or worse, downloading a standard Assured Periodic Tenancy Agreement for a spare room in your own home—can strip you of resident-landlord flexibility or create conflicting contractual obligations.

Quick Check: Taking a deposit from your lodger? Remember that the Tenant Fees Act 2019 5-week deposit cap still applies to lodger licences (section 28). Check your exact limit with our free Deposit Cap Calculator.

The 3 statutory tests for an 'excluded occupier' under PFEA 1977 s.3A

To qualify as an excluded licence (or excluded tenancy) under section 3A of the Protection from Eviction Act 1977, all three of the following factual conditions must be met:

1. The "Only or Main Home" Continuity Test (PFEA 1977 s.3A(2)(b) & HA 1988 Sch 1 para 10):

You (or a qualifying member of your family) must occupy the premises as your only or main home both at the time the licence is granted and when it comes to an end. If you own two homes and only stay at the property two nights a week while living mainly elsewhere—or if you move out to live with a partner for a year and leave the "lodger" in the house alone—you lose resident-landlord status.

1. The "Shared Living Accommodation" Test (PFEA 1977 s.3A(2)(a) & (6)):

The lodger must share living accommodation with you. Under section 3A(6), "living accommodation" includes a kitchen, bathroom/lavatory, or sitting/living room, but expressly excludes storage areas, staircases, entrance halls, or landings.

• Crucial distinction: If you convert your basement or loft into a self-contained studio with its own kitchenette and en-suite shower room, and the occupier only shares the front door and hallway with you, they are not an excluded occupier under s.3A—they have basic protection under Schedule 1 paragraph 10 of the Housing Act 1988, meaning you must obtain a county court possession order to evict them.

1. Lack of Exclusive Possession (Street v Mountford [1985] AC 809):

In the landmark House of Lords decision Street v Mountford [1985] AC 809, Lord Templeman established that whether an occupancy is a licence or a tenancy depends on the true substance of the arrangement, not the label on the document. A genuine lodger has a licence to occupy a room and share the home without holding the legal right to exclude the householder from the room.

Side-by-side comparison: Excluded Lodger Licence vs Assured Periodic Tenancy

5 practical mistakes that accidentally turn a lodger into a tenant (Street v Mountford)

Even if you use a well-drafted Lodger Agreement (LA), English courts look at what happens on the ground. Avoid these five mistakes that can destroy your section 3A excluded-occupier status:

1. Fitting an external key-operated deadbolt on the bedroom door to which you have no key:

An internal privacy thumb-turn or latch so the lodger has privacy while inside the room is normal and sensible. However, giving the lodger the sole key to an external cylinder lock and promising never to enter the room is classic evidence of exclusive possession under Street v Mountford. SignWise's Lodger Agreement (Clauses 2.2–2.4) expressly records that the lodger does not have the right to exclude the householder, preserves the householder's right to move the lodger to another comparable room on 7 days' notice (Clause 2.3, if selected), and records any household services provided (Clause 2.4).

1. Moving out of the home while the lodger stays:

If you relocate for work or move in with a partner and leave your lodger living in the property without a resident householder, the Schedule 1 paragraph 10 resident-landlord exemption falls away and the occupier can acquire a full Assured Periodic Tenancy under the Renters' Rights Act 2025.

1. Only sharing a hallway or front door (annexe / studio conversions):

If the occupier has their own cooking and washing facilities behind their own door and never needs to use your kitchen, bathroom, or living room, section 3A(6) of the Protection from Eviction Act 1977 states that sharing a hallway or stairs does not make them an excluded occupier.

1. Using an Assured Periodic Tenancy Agreement (TA) by mistake:

If you ask a lodger in your own home to sign an Assured Periodic Tenancy Agreement that contractually promises them Housing Act 1988 notice periods, court-order-only eviction terms (SI 2026/324 para 11), and section 16A pet rights, a court can hold you to the contractual terms you signed even where statute would not have imposed them.

1. Taking in 3 or more lodgers without checking HMO licensing (Housing Act 2004):

A resident homeowner can live with up to 2 lodgers without the property becoming a House in Multiple Occupation (HMO) under Schedule 14, paragraph 6 of the Housing Act 2004. The moment you have 3 or more lodgers (who are not part of your family) sharing facilities with you, the home normally becomes an HMO—and with 4+ lodgers (5+ total people), mandatory HMO licensing (Housing Act 2004 Part 2) applies.

Statutory rules that STILL apply to resident landlords (TFA 2019, Right to Rent, Gas Safety & Rent Books)

Being outside the Renters' Rights Act 2025 does not mean taking in a lodger is unregulated. Every resident landlord in England must comply with five mandatory statutory duties—all of which are audited and built into SignWise's Lodger Agreement (LA — £19):

1. Tenant Fees Act 2019 (section 28): The Tenant Fees Act 2019 expressly applies to licences to occupy housing in England (s.28(1)). You cannot charge a lodger a check-in fee, inventory fee, referencing fee, or cleaning fee, and their deposit is strictly capped at 5 weeks' rent (or 6 weeks if annual rent is £50,000+). Use our free Deposit Cap Calculator to check the exact figure.
2. Right to Rent Checks (Immigration Act 2014 sections 20–23): Resident landlords taking in a paying lodger are legally required to inspect and copy the lodger's original right-to-rent documents (or verify their Home Office online share code) before the lodger moves in. Civil penalties for renting to a disqualified person without a statutory excuse reach up to £5,000 per lodger for a first breach and £10,000 per lodger for a repeat breach.
3. Annual Gas Safety Check (Gas Safety (Installation and Use) Regulations 1998 reg 36): Regulation 36 applies to licences as well as tenancies. Every gas appliance and flue in the home must be checked every 12 months by a Gas Safe registered engineer, and a copy of the current Gas Safety Record must be given to the lodger before they move in (Clause 7.2).
4. Ofgem Maximum Resale Price for Energy (Utilities Act 2000 / Electricity Act 1989 s.44): If you recharge gas or electricity to your lodger separately from the rent (LA-Q048), you may only charge the exact unit and standing-charge cost you actually paid (including domestic VAT), with zero mark-up (Clause 4.4).
5. Mandatory Weekly Rent Book (Landlord and Tenant Act 1985 sections 4–5): Whenever a residential licence or tenancy is payable weekly, failing to provide a rent book containing the prescribed statutory particulars is a summary offence under section 5. When you select Weekly rent in SignWise (LA-Q044), SignWise automatically generates and attaches Annex — Weekly Rent Book (calc.rent_book_required).

Protect Your Home & Resident-Landlord Status: Create Your Excluded Occupier Lodger Agreement + Compliance Schedule (£19).