What are the rules for taking in a lodger?
Considerably simpler than letting a property, because a lodger living in your own home is an excluded occupier with minimal statutory protection — and there is a tax scheme that makes it unusually attractive.
What makes someone a lodger. They live in your home, you live there too, and they share accommodation with you — a kitchen, bathroom or living room. Your residence is what creates the arrangement; if you move out, the position changes entirely.
What this means legally:
The lodger has a licence, not a tenancy.
They are an excluded occupier, so you do not need a court order to remove them. Reasonable notice — typically the length of a rental period — is sufficient, and after it expires you may change the locks. This is a very substantial difference from letting a self-contained property.
Deposit protection rules do not apply, though returning it fairly is still a contractual matter.
You retain access to the whole property.
The Rent a Room Scheme. Income from letting furnished accommodation in your only or main home is tax free up to a threshold — currently £7,500 a year, halved where the income is shared.
How it works: if receipts are below the threshold, the exemption is automatic and there is nothing to declare. Above it, you choose between paying tax on the excess over the threshold, or on the profit calculated conventionally — whichever is lower.
It applies to lodgers, not to letting a separate self-contained flat.
What you must check before taking anyone in:
Your mortgage. Most lenders permit a lodger, and many require notification. Doing it without checking can breach the mortgage conditions.
Your insurance. Buildings and contents policies frequently require notification, and a claim may be refused otherwise.
Your own landlord, if you rent — most tenancies prohibit it without consent, and subletting in breach can be grounds for possession.
Leasehold covenants, if the property is leasehold.
Benefits and council tax. Income may affect means-tested benefits, and taking in a lodger ends a single person council tax discount.
Right to rent checks apply in England.
A written agreement setting out rent, notice, bills, house rules and access is strongly advisable.
General information, not legal or tax advice.