Universal credit, rent a room and AirB&B

Autumn2025

Hi all, I’m hoping for some clarification around Universal Credit and the rent-a-room scheme.

I’m on UC in the England. I live in my two-bedroom shared ownership flat. I previously let out a spare room in my main home, mostly for monthly stays (sometimes the same guest stayed across several months). The income was sporadic, with some months at £0, and I never provided meals or hotel-type services. The flat always remained my only and main residence. Later I moved to having a permanent lodger.

From what I’ve read, ADM H5112 (the “Teresa” example) says that income from letting a furnished room in a claimant’s main home is disregarded for UC purposes unless it’s run as a trade (like a B&B). My understanding is that this is not platform specific and using Airbnb as a booking method doesn’t change that, but I can’t find anything in UC guidance that explicitly says Airbnb is allowed or not.

My question: In practice, does this type of arrangement (occasional monthly Airbnb lets in your main residence before taking on a permanent lodger) still qualify as “rent-a-room” income to be disregarded, or could UC treat it as self-employment purely because it went through Airbnb even though I provided no services and did not run it like a trade.

Any advice or information on this would be hugely appreciated.

huckster

You need to ask Universal Credit via your journal.

Normally money received from a lodger is disregarded. However an Airbnb listing suggests a business motive. 

I don't see the point in getting any answers via an online forum, where it might depend on exact details. And it is up to Universal Credit to decide based on the information you provide.

Autumn2025

Thanks for your response. I have actually asked UC via my journal - I've provided comprehensive legal arguments referencing ADM H5112 (the Teresa example) which states that income from letting a furnished room in a claimant's main home is disregarded unless it's run as a trade like a B&B.

I respectfully disagree that "Airbnb listing suggests a business motive." The legal test under ADM H5112 isn't about the booking platform used, but whether you're actually "conducting a trade." In my case:

• All bookings were monthly stays (not nightly/commercial)
• Income was sporadic with zero income many months
• No meals, cleaning or hotel-type services provided
• Property remained my main residence throughout

The platform neutrality principle is important - ADM H5112 doesn't distinguish between finding guests through direct contact, Spareroom, or Airbnb. The substance of the arrangement matters, not the booking method.

I'm seeking advice from others who've navigated similar situations because this appears to be a gray area where caseworkers may make assumptions about platform use that aren't supported by the actual legal framework.

NedS

huckster said:

You need to ask Universal Credit via your journal.

Normally money received from a lodger is disregarded. However an Airbnb listing suggests a business motive. 

I don't see the point in getting any answers via an online forum, where it might depend on exact details. And it is up to Universal Credit to decide based on the information you provide.

I'll just echo what @huckster has said. It's a decision for UC to make on a case by case basis so should be raised with UC or your work coach if you have one.

Spoonie_Turtle

Just FYI, you talk about legal arguments and legal framework, but the guidance you refer to (Advice for Decision Makers) isn't the law, it's how DWP interprets the law.

[I don't know if there is a material difference between advertising on a platform like AirBnB or letting a room the old-fashioned way so I have nothing to add, just thought it would he useful for you to know the distinction between guidance and law ]

huckster

The principle of UC disregarding income from providing a lodger with a room, it that it is helpful to Government dealing with a Housing crisis.

I am not sure an Airbnb listing is normally where homeless people find Housing? 

Airbnb is surely an indication of short term provision of accommodation.  It could be a tourist looking for cheaper accommodation whilst visiting the UK and not a local person without Housing.

It is Universal Credit you will have to provide all information to, so a decision can be made.

Autumn2025

Thanks for taking the time to reply — I can see where you’re coming from, and I know a lot of people associate Airbnb with tourist accommodation.

In my case though, the facts are quite different:

• All the stays were monthly lets (sometimes the same guest across multiple months).

• The property was always my only and main home.

• I didn’t provide meals or hotel-type services.

• The income was sporadic, with several zero-income months.

So while many Airbnb listings are short-term holiday lets, mine functioned much more like a traditional lodger arrangement. That’s why I’ve been looking closely at ADM H5112 (the Teresa example), which says income from letting a room in your main home is disregarded unless it’s run as a trade.

I think the distinction is important — it’s not really about the platform used, but about the nature and pattern of the letting.

huckster

Make your argument to Universal Credit.

Any Decision Maker will refer to policy guidance when dealing with such situations.

I suspect that Airbnb has come up before and Universal Credit policy team will provide technical guidance.

If the decision goes against you, then you would raise Mandatory Reconsideration and then Courts Tribunal if required.

Grumpy_chap

I accept the comment that AirB'n'B might be more associated with holiday rather than lodging accommodation.

I am not certain that even offering holiday accommodation (via AirB'nB or any other platform) is necessarily of itself a trade.

The facts should speak for themselves if the OP is offering lodging rather than holiday accommodation that should be evident and demonstratable.  It should make no difference whether the platform used to secure the lodging customer is AirB'n'B, SpareRoom, the local newsagent window or any other platform.

HillStreetBlues

Is there a lock on the bedroom door that the person uses?

peteuk

Autumn2025 said:

Thanks for your response. I have actually asked UC via my journal - I've provided comprehensive legal arguments referencing ADM H5112 (the Teresa example) which states that income from letting a furnished room in a claimant's main home is disregarded unless it's run as a trade like a B&B.

I respectfully disagree that "Airbnb listing suggests a business motive." The legal test under ADM H5112 isn't about the booking platform used, but whether you're actually "conducting a trade." In my case:

• All bookings were monthly stays (not nightly/commercial)
• Income was sporadic with zero income many months
• No meals, cleaning or hotel-type services provided
• Property remained my main residence throughout

The platform neutrality principle is important - ADM H5112 doesn't distinguish between finding guests through direct contact, Spareroom, or Airbnb. The substance of the arrangement matters, not the booking method.

I'm seeking advice from others who've navigated similar situations because this appears to be a gray area where caseworkers may make assumptions about platform use that aren't supported by the actual legal framework.

I would suggest the use of the word “bookings”points to a buisness rather than a lodger (short term) equally can I ask how the room was prepared for the next booking?  I assume youd launder the sheets, tidy the room etc.