Updated October 2026
In short: If someone lives in your home without paying rent, they're usually a licensee, not a tenant, so they have fewer rights and you can normally ask them to leave with reasonable notice. But you still need to think about your mortgage, insurance, council tax and what happens if they won't go. A short written agreement avoids most problems.
Letting a family member, partner or friend stay for free is common. It's generous, and it usually works. Where it goes wrong, it's because nobody agreed the basics at the start: how long they're staying, what they'll pay towards bills, and what happens when it ends.
Licence or tenancy: why rent matters
A tenancy normally requires rent and exclusive possession of the home or part of it. If someone pays nothing and shares the property with you, they're almost always a bare licensee. They're in your home with your permission, and that permission can be withdrawn. If they pay money, even "towards bills", or have their own self-contained space, the position becomes less clear-cut, and they may become a lodger or even a tenant with stronger rights.
| Arrangement | Typical situation | Their rights | Ending it |
|---|---|---|---|
| Bare licensee (rent-free) | Friend or relative living with you, paying nothing | Limited: can stay while you permit | Reasonable notice, often a few weeks |
| Lodger | Pays rent, shares your home with you | Excluded occupier: no court order needed | Reasonable notice (usually the rent period) |
| Tenant | Pays rent, exclusive possession, you live elsewhere | Full statutory protection | Formal notice and court process if they won't leave |
General guide for England. Individual circumstances can change the outcome, so take advice if the arrangement is unusual.
Things to sort out before they move in
Before someone moves in
- Mortgage lender: check your terms. Most don't mind a family member living with you, but some ask to be told about adult occupiers.
- Home insurance: tell your insurer about additional adult occupants.
- Council tax: you'll lose the 25% single person discount if another adult lives with you.
- Benefits: if you or they claim Universal Credit or Housing Benefit, report the change, because non-dependant deductions may apply.
- Written agreement: a short licence agreement setting out the start date, expected end date, contributions and notice.
- Their address: agree whether they'll register for post, the electoral roll and their GP at your address.
Tax: free stays vs paying lodgers
If no money changes hands, there's no rental income to declare. If they start paying you to live there, you're taking in a lodger. You can earn up to £7,500 a year tax-free from a furnished room in your own home under the Rent a Room Scheme. Above that, it's taxable.
If they won't leave
Give clear written notice with a reasonable period to find somewhere else. Most licensees who live with you are "excluded occupiers", so you don't need a court order, but you must not use force. If the person has a separate self-contained part of the property, or has been paying regular rent, they may have stronger rights, so get advice before changing locks.
How Fraser Bond can help
- Advice on whether your arrangement is a licence, lodging or a tenancy
- Licence and lodger agreements drafted for your situation
- Support converting a family arrangement into a properly documented let
- Help to regain possession lawfully if an arrangement breaks down
- Letting and management if you decide to rent the property out formally
Frequently asked questions
Can someone live in my house for free without being a tenant?
Yes. If they share your home and pay no rent, they're usually a licensee rather than a tenant.
Do I need to tell my mortgage lender?
Check your mortgage terms. Many lenders need to know about adult occupiers, and some require them to sign a waiver of occupancy rights.
Can they claim rights to my property?
Living there rent-free doesn't give them ownership. Claims can arise if they've paid towards the purchase or major improvements, so keep contributions documented.
Not sure where you stand?
Our team can review your arrangement and put the right paperwork in place.
Speak to our teamRelated guides
- Can a partner live with you without being on the tenancy?
- Can landlords limit how long tenants have guests?
- How many people can legally live in a 3 bedroom house?
Fraser Bond services: Property services · Rental · Free valuation · Contact us
