Offer free accommodation in exchange for services, what does the law say?

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Offering free accommodation in exchange for services, what does the law say ?

Do you have a spare room or a vacant studio and need help with daily tasks such as childcare, shopping or home maintenance? Housing in exchange for services can be a practical solution.

But one key question remains: is it legal in the UK?

What is housing in exchange for services?

This arrangement involves offering accommodation (free or at a reduced cost) in exchange for help with everyday tasks.

👉 Learn more: housing in exchange for services .

Is it legal in the UK?

Yes, this type of arrangement can be legal in the UK, but it depends on how the relationship is structured.

There are two main situations:

  • Informal arrangement (lodger / guest): occasional help without strict obligations
  • Employment relationship: if duties are regular, controlled, and required, the arrangement may be considered work

⚠️ If the arrangement is considered employment, UK employment law applies (minimum wage, working hours, tax obligations).

Important legal considerations

  • Avoid creating a clear employer-employee relationship unintentionally
  • Do not require fixed working hours without proper employment status
  • Ensure the arrangement is fair and balanced

There is no strict legal hourly limit, but excessive or structured work may lead to reclassification.

Lodger vs employee

In the UK, many arrangements fall under the “lodger” status (a person living in your home with permission).

However, if the person provides regular services, this may trigger employment obligations.

Why you should formalise the agreement

Even in informal arrangements, it is strongly recommended to define:

  • Duration of stay
  • Nature of tasks
  • Expected schedule (flexible)
  • House rules

👉 Use a contract to clarify expectations.

👉 Follow our safety guide.

Insurance and responsibilities

  • The guest should have personal liability insurance
  • The accommodation must be safe and habitable
  • Check your home insurance policy covers a lodger

A human-centered solution

Beyond legal aspects, this model is based on trust and mutual support.

👉 See our code of conduct .

It can be a flexible and cost-effective solution when properly structured.