Statute: Protection from Eviction Act 1977
Applies to: england,wales,scotland,ni
Notice periods: [object Object]
A Licence to Occupy is a personal permission to use accommodation, given by the owner to an occupier, where the occupier does not have exclusive possession of any defined part of the property. Licences give substantially fewer rights than tenancies and are the right legal label for some situations (hostels, bed-and-breakfast, lodger arrangements sharing with a resident landlord) but not for others.
The key distinction: exclusive possession
A licence is distinguished from a tenancy mainly by whether the occupier has exclusive possession. If the occupier has the right to exclude everyone, including the landlord, from a defined part of the property, the arrangement is usually a tenancy, even if the paperwork calls it a licence. The landmark case is Street v Mountford [1985] which set the test: if the three 'hallmarks of a tenancy' are present (exclusive possession, a definite term, and rent), the arrangement is a tenancy regardless of the label used.
When a licence is genuine
Genuine licence arrangements include hostels where residents share a room or have their room changed by management, bed-and-breakfast accommodation provided by local authorities to homeless households, holiday lets, service occupancies where the occupier needs to live on the premises for their job (such as a caretaker), and lodger arrangements where the landlord lives in the property and shares facilities.
What rights the occupier has
A licensee has the contractual rights set out in the licence agreement. The key statutory protections that apply to assured tenants (Section 11 repairs, deposit protection, restrictions on eviction without a court order) do not apply. To end a licence, the licensor usually only needs to give reasonable notice under the Protection from Eviction Act 1977 section 3A, which for most excluded licences is a period matching the rent cycle.
How courts handle sham licences
Courts look at the reality of the arrangement, not just the document. If a landlord draws up a 'licence' that actually gives the tenant exclusive possession of a self-contained flat, the court will find that a tenancy exists. Occupiers who suspect they have a tenancy dressed up as a licence can apply to the court for a declaration. Shelter and Citizens Advice can advise on whether the arrangement is likely to be recharacterised.
Where licences fit under the Renters' Rights Act 2025
The Renters' Rights Act 2025 reforms assured tenancies. It does not change the law of licences. Occupiers under a genuine licence continue with the contractual and limited statutory rights the Protection from Eviction Act 1977 and the licence agreement provide.