Licence to occupy
Permission to occupy that falls short of a tenancy.
2 min read · Updated 2 August 2026
Overview
A licence gives permission to occupy without exclusive possession — typical for lodgers and genuine serviced arrangements. Labelling an agreement a licence does not make it one: if the occupier has exclusive possession of a self-contained space for a term at a rent, the courts will find a tenancy.
Legal requirements
- Courts apply the substance test from Street v Mountford, not the label on the document.
Practical guidance
- Do not use licence wording to avoid deposit protection or possession rules — it rarely survives challenge.
This wiki entry is general information for UK landlords and letting agents, not legal advice. Rules differ across England, Wales, Scotland and Northern Ireland — check your local requirements or take advice before acting.