HMOs, Lodgers, and Unusual Tenancies: How the Renters’ Rights Act Applies

Written by Daniel Andrews, Partner & Solicitor, Cramp & Mullaney LLP
Last reviewed: April 2026


The Renters’ Rights Act 2025 applies to Assured Periodic Tenancies. Most private residential lettings fall within this category, but there are several types of arrangement where the position is more nuanced. This article explains how the Act applies to Houses in Multiple Occupation, lodger arrangements, long leases, and company lets.

Houses in Multiple Occupation

A House in Multiple Occupation is a property occupied by three or more tenants who form more than one household and who share facilities such as a kitchen or bathroom. Where individual rooms in an HMO, or the property as a whole, are let on Assured Periodic Tenancies, the full Renters’ Rights Act applies from 1 May 2026. HMO tenants on assured tenancies have the same rights as any other tenant under the Act: the right to give two months’ notice to leave, protection from Section 21, the annual rent increase limit, pet rights, and the anti-discrimination provisions.

HMO licensing is a separate regime that runs in parallel. A landlord who is required to hold an HMO licence must have one, and failure to do so is a criminal offence that can also affect the ability to obtain Rent Repayment Orders. The licensing requirements are unchanged by the Renters’ Rights Act.

HMO landlords should review their room-by-room tenancy agreement templates before May 2026, removing fixed-term provisions, removing contractual rent review clauses, and removing any discriminatory restrictions. They should also ensure that the Renters’ Rights Act Information Sheet is provided to every HMO tenant by 31 May 2026.

Lodger Arrangements

A lodger is a person who rents a room in a property where the landlord also lives and with whom they share living accommodation, such as a kitchen or sitting room. A lodger is a licensee rather than a tenant. The arrangement does not create an Assured Tenancy and the Renters’ Rights Act does not apply to it.

The protection from eviction that applies to lodgers is more limited than that available to tenants. A landlord can end a lodger arrangement with reasonable notice, which in the absence of a specific agreement means the rental period, without needing a court order. This is because a shared-living arrangement where the landlord is resident is an excluded licence for the purposes of the Protection from Eviction Act 1977.

If you are unsure whether your arrangement is a tenancy or a licence, the distinction matters considerably and the practical consequences are very different. Please seek legal advice if you are in any doubt.

Long Leases Over Seven Years

An important change that came into force on 27 December 2025 is that tenancies and leases of more than seven years can no longer be Assured Tenancies. This addresses what had become known as the AST trap, where long residential leases with annual ground rents above a certain level could be treated as Assured Shorthold Tenancies, exposing leaseholders to possession proceedings under Section 8 for relatively modest arrears. From 27 December 2025, this risk has been removed for long leases.

Company Lets

Where a company rather than an individual rents a residential property, the arrangement does not create an Assured Tenancy under the Housing Act 1988. The Renters’ Rights Act does not apply. Possession of company lets continues to be governed by the common law and the terms of the agreement. Landlords should be aware that structuring arrangements as company lets purely to avoid the Act’s provisions, where the underlying occupier is effectively an individual, may be challenged as artificial arrangements if the substance does not match the form.

If you are a landlord or tenant in Kent and need advice on the Renters' Rights Act 2025 or any landlord and tenant matter, Cramp & Mullaney LLP can help. We advise clients across Kent and the South East from our offices in Eastbourne (01323 720581) and Battle (01424 533222), East Sussex. We offer a fixed fee 30-minute initial consultation.

This article is for general information only and does not constitute legal advice. If you need advice about your specific situation, please contact Cramp & Mullaney LLP on 01323 720581 (Eastbourne) or 01424 533222 (Battle), or email us at info@cmlaw.co.uk. We are authorised and regulated by the Solicitors Regulation Authority (SRA No. 598851).

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