Service tenants
A worker who occupies accommodation provided by their employer but does not need to live there for their work can have tenancy rights.
Who is a service tenant?
An employee is a service tenant if they rent accommodation from their employer and do not need to live there to do their job.
If a service tenant is dismissed or resigns from their job, their employer might ask them to leave. The employer must follow the correct procedure to take possession of the property. Some grounds for possession are specific to service tenants.
A tenant's security of tenure depends on who their employer is and when they moved into their accommodation.
When a worker must live in the accommodation for their job
When a worker rents from their employer and has to live in the accommodation to do their job they might be a service occupier.
Service occupiers have fewer rights than service tenants and can be asked to leave immediately when their employment ends.
Find out more about service occupiers on Shelter Legal.
Private sector employment
A service tenant in the private sector is usually an assured shorthold tenant if their agreement started on or after 15 January 1989.
They are a fully assured tenant if both their:
agreement started between 15 January 1989 and 27 February 1997
employer did not give notice that the tenancy is an assured shorthold tenancy
Find out more about assured and assured shorthold tenancies on Shelter Legal.
When the tenant's employment ends
An assured or assured shorthold service tenant can live in the property after their employment ends. They have the same rights as any other assured or assured shorthold tenant.
An employer can evict an assured shorthold service tenant using a section 21 notice. The employer does not have to give a reason but must give at least two months' notice.
The tenant might have a defence if the notice is invalid. A notice will be invalid if it has not been served correctly or if the landlord has not complied with other requirements.
Find out more about section 21 notices on Shelter Legal.
An employer can use any of the assured tenancy grounds to evict an assured service tenant where conditions are met.
Ground 16 applies specifically to service tenants. This applies where the property was let to the tenant in consequence of their employment and the employment has ended. The court must be satisfied that it is reasonable to order possession.
Find out more about assured tenancy grounds on Shelter Legal.
Private sector employment starting before January 1989
A service tenant has a regulated tenancy if their agreement started before 15 January 1989 and the property is let as a separate dwelling.
Find out more about regulated tenancies on Shelter Legal.
When the tenant's employment ends
A regulated service tenant can live in the property after their employment ends. They have the same rights as any other regulated tenant.
A landlord can use any of the regulated tenancy grounds to evict a service tenant where conditions are met. Ground 8 applies specific to service tenants. This applies where:[1]
the premises were let to the tenant by the employer in consequence of their employment
the employment has ended
the premises are reasonably required for occupation by another worker
This is a discretionary ground. The employer must convince the court that another worker needs the premises and it is reasonable to order possession.
Find out more about regulated tenancy grounds on Shelter Legal.
Public sector employment
A service tenant of a public sector employer is normally a secure tenant unless an exception applies. For example, a local authority may specifically grant tenancies of its properties to key workers, such as teachers and social workers.
An occupier is a secure tenant if they:
are an individual
occupy a separate dwelling as their only or principal home
have a tenancy or licence granted by a local authority or other public body
A public body includes housing association if the occupation started before 15 January 1989. Agreements with housing associations starting on or after 15 January 1989 might be assured or assured shorthold tenancies.
Some workers might have a secure licence which is recognised as a secure tenancy.[2] In one case, a head teacher lived rent-free in a property next to the school. It was not essential that he lived next to the school to carry out his duties. He was recognised as a secure tenant.[3]
Find out more about secure tenancies on Shelter Legal.
When the tenant's employment ends
The tenant can live in the property after their employment ends. They have the same rights as any other secure tenant. A landlord can use the secure tenancy grounds to evict a service tenant where the conditions are met.
Grounds 7 and 12 apply specifically to service tenants and to accommodation that forms part of a building mainly used for non-housing purposes. For example, a school. [4]
Ground 7 applies where the tenant is employed by their landlord and is guilty of misconduct which makes it unsuitable for them to continue living in the accommodation.
Ground 12 applies when a tenant's:
accommodation was let to the tenant by their employer in consequence of their employment
employment has now ended
employer needs the accommodation for another employee
The employer has to provide suitable alternative accommodation when using ground 12.
The court can only grant possession on grounds 7 or 12 if it considers it is reasonable to do so. The public body must comply with their public sector equality duty.[5]
Find out more about grounds for possession for a secure tenancy on Shelter Legal.
Exceptions to secure tenancy protection
Some service tenants are excluded from secure tenancy protection and are occupiers with basic protection.[6]
This includes some police and fire officers provided with accommodation by their employer in connection with their job. It also includes when a worker's contract requires them to occupy the property to perform their job and their employer is a public authority but not their landlord.
Where an occupier with basic protection has a periodic agreement their employer should give them a written notice to quit. An employer does not have to issue a notice at the end of a fixed term agreement as the licence ends on the expiry of the contractual term. If the occupier does not leave the employer must apply to court for a possession order.
Find out more about occupiers with basic protection on Shelter Legal.
Rent free accommodation or resident landlord
A worker is usually excluded occupier if they do not have to pay rent. They might be treated as paying rent if they receive reduced wages because accommodation is included in their employment. Their payslips should show deductions for accommodation costs.
A worker is also an excluded occupier if they share living accommodation with their landlord.
Find out more about excluded occupiers on Shelter Legal.
When the occupier's employment ends
When the employment ends, the employer can peaceably evict an excluded occupier without a court order. For example, by changing the locks while the occupier is out. Excluded occupiers who have a periodic agreement are entitled to notice before they can be evicted.
An employer commits an offence if they use violence to try and force an occupier to leave.
Find out more about the eviction of excluded occupiers on Shelter Legal.
Last updated: 1 August 2023