Types of Tenure:
A tenancy gives the tenant a legal interest in the land and property – in effect, legal ownership for the period of the tenancy. Tenancies can take several forms:
- Rent Act or Regulated Tenancies – pre
- Assured Tenancies
- Assured Shorthold Tenancies (now the default residential tenancy in England)
A license agreement is different – it gives the “tenant” permission to occupy only. The tenant therefore gains no interest in the property or land, merely a consent from the landlord to occupy for a period of time.
The grant of a license does not create an estate in land and the licensee does not gain an interest in the property, purely permission to occupy it.
Stays in Hotels, Hostels, Lodgings (letting a room in your own home) holiday lettings, employees of a business living on the premises, and some HMOs are on license agreements.
Sometimes landlords head the agreement as a licence when in fact, in law, the occupier has a legal tenancy. It’s the situation that counts, so if the occupier has exclusive possession, i.e., no other person, including the landlord has no regular access to their space, then it is a tenancy.
See: Street v Mountford©LandlordZONE® – legal content applies primarily to England and is not a definitive statement of the law, always seek professional advice.