The Rent a Room Scheme is a UK government initiative that allows homeowners and tenants to rent out furnished rooms in their primary residence. Where hosts and guests are living together and would like to continue, this is an excellent option to continue the arrangement beyond the HFU scheme.
Who is the scheme for?
Hosts who have been hosting a Ukrainian guest under the Homes for Ukraine scheme
A house owner or tenant
A bed and breakfast business
Who cannot access the scheme?
Those whose accommodation is:
- Not part of the main home
- Not furnished
- Converted into separate flats
- Used as an office or for any business
- Let whilst you live abroad
Under the Rent a Room scheme, guests would be responsible for paying rent as a lodger. The amount payable should be agreed between the host and guest(s) before entering into the private arrangement. Hosts will not need to pay tax on the income so long as the amount received does not exceed £7500. This limit is on a household basis; is not affected by the number of rooms provided, and includes any contributions to bills and household expenses.
Whilst it is not required to have a contract, it is a good idea to have a written agreement between the lodger and live-in landlord. We have a template for a ‘Lodger Agreement’ which can be found here. Sample Lodger Agreement
We advise hosts and guests to seek legal advice on the above before proceeding.
For guests who may struggle to cover the cost of rent themselves, the housing element of Universal Credit (UC) is available, up to the Local Housing Allowance rate. To make a claim for UC for rent under a lodger agreement, guests will need to ‘Report a Change’ and will be asked to upload a copy of their agreement.
If hosts are renting, they will need their landlord’s permission to sub-let. They will also need to inform their insurance provider if they have lodgers.
The Rent a Room Scheme is not suitable for placements where guests are living in self-contained accommodation, including self-contained annexes. You can instead become a landlord in order to rent out your property - please view the ‘private rental’ section below. For hosts who are unsure of whether their guest’s accommodation is considered a separate dwelling; please contact your district council’s housing department to enquire (please see the below FAQs for more information).
For more information on renting out a room in your home, please see the following webpages; Rent a room in your home: Becoming a resident landlord - GOV.UK
For more information on the tax-free limit for Rent a Room scheme income, please see the following help sheet; Rent a Room Scheme (2025) - GOV.UK.
Please note, if you decide to end your rent a room placement, you should give your guests ‘reasonable notice’, equivalent to the length of rental period which in most cases would be one month’s notice.