Licences and tenancies at will—residential focus

A licence generally permits someone to do something on another’s property which would otherwise be unlawful. Licences do not generally benefit from the same level of statutory protection that many leases do.

A tenancy at will is a tenancy which is terminable at the will of either the landlord or the tenant. They are flexible but do not provide either party with any certainty or security.

Licences and tenancies at will are often seen as a way to allow occupation and use of premises on an 'easy in, easy out' basis.

Although an assured shorthold tenancy under the Housing Act 1988 (HA 1988) allows a landlord to let residential premises without the tenant obtaining long-term rights of occupation, there are still some advantages to a landlord in creating a residential licence rather than a tenancy. Licences can provide greater flexibility and do not provide the range of statutory protections which leases do such as various forms of security of tenure, compensation for improvements, protection from eviction and the regulation of rent and costs such as service charges.

See Residential tenancies—overview.

Distinguishing

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