Landlord Advice UK Tenant Eviction Service For Landlords

Excluded License Agreement

An excluded licence is a type of agreement that offers limited legal protection to licensees under the Protection from Eviction Act 1977. Landlords, property guardians, and local authorities often rely on excluded licences in specific situations where the accommodation arrangement does not create full tenancy rights. Below, we detail the criteria for an excluded licence, the eviction process, and key considerations for landlords.

What is an Excluded Licence?

A licence is typically classified as an excluded licence if:

• It is granted by a local authority to a homeless applicant for temporary accommodation.
• The premises is a hostel where facilities are shared among occupiers.
• The landlord/licensor shares any part of the accommodation with the licensee.
• It is granted solely for holiday purposes.
• It is granted for reasons other than money’s worth (e.g., as a favour).
• There is no intention to create legal relations.
• It is granted to a property guardian for the purpose of property protection.

These exclusions limit the rights of the licensee and simplify the process for landlords to regain possession of the property.

Licences Granted to Homeless Applicants

Local authorities often provide temporary accommodation to homeless applicants using excluded licences. In such cases, landlords or letting agents supply the accommodation to the local authority, which then grants occupancy to the homeless applicant.

Legal Framework for Homeless Applicants

1. Under Section 188 of the Housing Act 1996, local authorities provide accommodation while they conduct inquiries into a homelessness application.
2. Under Section 190, temporary accommodation may be provided to applicants who have been found intentionally homeless.

In these situations, courts have ruled that applicants occupying accommodation under these sections are excluded from protection under the Protection from Eviction Act 1977.[4]

When Basic Protection Applies

If the local authority accepts that it owes the applicant a long-term housing duty (under the main housing duty) and allows the applicant to remain in the temporary accommodation indefinitely while seeking permanent housing, the applicant gains basic protection under the Protection from Eviction Act 1977.[6]

This means that:

• The landlord must serve proper notice.
• A possession order is required to lawfully evict the occupant.

Hostels and Excluded Licences

A hostel is specifically defined under Section 622 of the Housing Act 1985.[1] To qualify as a hostel:

• Licensees must share facilities such as bathrooms, toilets, or kitchens with other occupants.

Hostel arrangements are typically excluded licences, meaning licensees have limited eviction protections.

Eviction Under an Excluded Licence

The term “excluded” refers to being excluded from the protections under the Protection from Eviction Act 1977. For excluded licences:

• The landlord or licensor is not required to give notice before evicting the licensee.
• A possession order from the court is not required.
• The landlord can regain possession directly and may lock the licensee out, provided this is done without excessive force or harassment.

When Excluded Status May Not Apply

If the licensee occupies self-contained accommodation (e.g., where they have exclusive access to a bathroom, kitchen, and toilet), they are unlikely to have an excluded licence and may have eviction protections under the Protection from Eviction Act 1977.

Key Considerations for Landlords

1. Clear Documentation:
   Ensure the licence agreement explicitly states the nature of the arrangement and the limited rights of the licensee.

2. Compliance with the Law:

   • For homeless applicants under Section 188 or Section 190, confirm whether the local authority has discharged its duty or if basic protections now apply.
   • Verify whether the property qualifies as a hostel under the Housing Act 1985.

3. Avoiding Disputes:
   While excluded licences simplify eviction, landlords must act within the law and avoid harassment or unlawful eviction, which can lead to legal penalties.

Contact Landlord Advice UK for Expert Guidance

Whether you’re dealing with excluded licences, homeless applicants, or property guardianship, Landlord Advice UK can help. Our team of experts can assist with:

• Drafting licence agreements that comply with the law.
• Navigating eviction processes under excluded licences.
• Resolving disputes related to excluded occupiers.

Contact us today to protect your property rights and ensure full compliance with housing regulations.

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[1] Section 622 of the Housing Act 1985.
[4] Sections 188 and 190 of the Housing Act 1996.
[5] Legal precedent on interim accommodation under homelessness law.
[6] Protection from Eviction Act 1977.