Licence to Occupy vs Lease: What You Sign for a UK Flexible Office
Almost every arrangement in this catalogue is a licence, not a lease. A licence gives you permission to use space; a lease gives you exclusive possession of it, and with that possession comes a set of statutory rights a licence does not carry. That single distinction explains why a serviced room can be taken in a week, cancelled on a month's notice, and quoted as one inclusive figure — and what you give up in exchange. The catalogue lists 3,340 serviced rooms in 622 UK buildings and 595 desk options in 575, and the paperwork behind nearly all of them is a licence.
What is a licence to occupy?
It is the instrument behind almost all 3,340 rooms and 595 desks listed here. A licence to occupy is a personal permission to use premises that would otherwise be trespass. It is not an interest in land. In a UK serviced building the operator keeps control of the space, retains the right to move you to a comparable room, and provides the services as part of the same agreement — which is precisely why the fee is one number rather than rent plus service charge plus rates.
The label on the document does not decide the matter. English law looks at the substance: if an agreement in practice gives exclusive possession of a defined space for a term at a rent, a court can find a tenancy however the paperwork is headed. A genuine licence therefore has to behave like one, and the operator's right to relocate you is the clause that most often makes the difference.
Lease or licence — what actually changes for you
Six practical differences, and they decide how quickly you can take one of the 622 UK buildings here and how quickly you can leave:
| Licence | Lease | |
|---|---|---|
| What you get | Permission to use | Exclusive possession |
| Can the provider move you? | Usually yes, to comparable space | No |
| Renewal rights | None | Usually, unless contracted out |
| Typical notice | 1–3 months | Break clause or full term |
| Rates, services, utilities | Normally inside the fee | Usually billed separately |
| Time to sign | Days | Weeks, with solicitors |
What is security of tenure, and do you lose it?
Security of tenure is the right of a business tenant to stay and renew at the end of a term, given by Part II of the Landlord and Tenant Act 1954. A licensee has no tenancy, so the question does not arise: when the licence ends, the right to be in the building ends with it.
Two mechanisms matter even when a short tenancy is used instead. The Act does not apply to a tenancy granted for a term certain not exceeding six months, unless the agreement provides for renewal or extension beyond six months, or the tenant (with any predecessor in the same business) has been in occupation for more than twelve months. And where a longer lease is granted, landlord and tenant can agree in advance to contract out of the renewal rights — routine in UK flexible space.
The twelve-month point is the one people miss. A rolling short arrangement that quietly passes a year of occupation can stop being outside the Act, which is why operators are careful about how renewals are documented.
Is a licence worse than a lease?
A licence is different rather than worse, and for most of the situations this catalogue serves it is the better instrument. A licence is why a five-person team can be working on Monday in one of 622 UK buildings without a solicitor, and why being wrong about headcount costs one month rather than the remainder of a five-year term. What a lease buys — a fixed, defensible position in a specific building for a long period — is worth paying for when the address itself is part of the business, and worth very little when it is not.
What to read before signing a licence
- The notice period, on both sides. The operator's right to end it matters as much as yours.
- The relocation clause. "Comparable space" is doing a lot of work in that sentence — ask what it has meant in practice in that building.
- What the fee includes, and what is metered: meeting rooms, printing, parking, after-hours access.
- Auto-renewal and the price on renewal. A discounted first term that renews at list price is common.
- The deposit — commonly one to two months — and the conditions for return.
- VAT. Many UK operators charge it on the fee, and a quote without it is 20% lighter than the invoice.
- Business rates: whether the address is a single assessment or your suite is rated separately, covered in do serviced offices pay business rates.
Is any of this changing?
Possibly, and it matters to anyone weighing a longer UK lease against a licence. The Law Commission is reviewing Part II of the Landlord and Tenant Act 1954 and published a second consultation paper on 16 June 2026, asking whether the framework still fits the modern commercial market. Nothing has changed in law yet, and a licence remains outside the Act regardless of the outcome — but anyone weighing a longer contracted-out lease against a licence should know the rules are under review.
Where to look
Browse serviced offices across the UK — 622 buildings in 172 towns and cities from £140 a month — or coworking desks from £118 for the shortest commitments. How short a UK term can be is covered in temporary workspace in the UK. Enquiring costs the tenant nothing: operators and building owners pay the fee.
Sources
- Landlord and Tenant Act 1954, section 43(3): the six-month term and the twelve-month occupation exception
- Landlord and Tenant Act 1954, Part II: security of tenure for business tenancies
- Law Commission — Business tenancies: the right to renew: second consultation paper, 16 June 2026
- Listing counts and entry rates: the Coworkings.uk catalogue, 627 buildings, rebuilt with every deploy
General information about how UK flexible workspace agreements are structured, not legal advice on a particular agreement.