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CHAPTER C
 
Requirements for security of tenure
Introduction
 
There are three main statutory regimes giving residential occupiers secur-ity of tenure: the Rent Act 1977, the Housing Act 1985 and the Housing Act 1988.
Rent Act 1977 s1 states that ‘a tenancy under which a dwelling-house (which may be a house or part of a house) is let as a separate dwelling is a protected tenancy for the purposes of this Act’. Rent Act protected tenancies are mainly tenancies granted by private landlords before 15 January 1989, but see Housing Act 1988 s34.
Housing Act 1985 s79 states that ‘A tenancy under which a dwelling-house is let as a separate dwelling is a secure tenancy at any time when the conditions described in sections 80 and 81 as the landlord condition and the tenant condition are satisfied.’ Secure tenancies under Housing Act 1985 are mainly tenancies or licences granted by public sector landlords such as local authorities, although housing association tenants whose tenancies were granted before 15 January 1989 may remain secure tenants if all the other requirements of a secure tenancy exist (see Housing Act 1985 s80(1) prior to amendment by the Housing Act 1988 and the Housing Act 1988 s35).
Housing Act 1988 s1 states that:
A tenancy under which a dwelling-house is let as a separate dwelling is for the purposes of this Act an assured tenancy if and so long as
(a) the tenant or, as the case may be, each of the joint tenants is an individual; and
(b) the tenant or, as the case may be, at least one of the joint tenants occupies the dwelling-house as his only or principal home; and
(c) the tenancy is not one which, by virtue of subsection (2) or subsection (6) below, cannot be an assured tenancy.’
Assured tenancies are mainly tenancies granted by private sector or registered providers of social housing (formerly, or in Wales, registered social landlords) since 15 January 1989 (Housing Act 1988 ss34–36) but, if assured tenancies also satisfy the requirements in Housing Act 1988 ss19–20 (see chapter K), they are assured shorthold tenancies without long-term security of tenure.
Rent Act 1977, Housing Act 1985 and Housing Act 1988 all contain different requirements which have to be met before a protected, secure to assured tenancy can come into existence. However, there are some common themes: letting as a separate dwelling, conditions which apply to the landlord and the tenant, and residential occupation. Cases in which these requirements have been considered are set out in this chapter. Cases in which the various exceptions to security of tenure have been considered are set out in chapter D.
The transitional provisions, governing the introduction of the assured tenancy regime are also included in this chapter.
Let as a separate dwelling
 
Rent Act 1977 s1, Housing Act 1985 s79 and Housing Act 1988 s1 all contain requirements that premises (whether they are a house, a flat or a single room such as a bedsit) be let ‘as a separate dwelling’. As a general rule, there can be no separate dwelling if any living accommodation is shared (whether with the landlord’s representatives or with other tenants), although there is nothing to prevent one or more joint tenants from jointly renting premises together as a separate dwelling – the fact that they share obviously does not prevent premises being let as a separate dwelling. Note, however, that Housing Act 1988 s3 and Rent Act 1977 s22 provide that where premises are shared with persons other than a landlord they may be deemed to be let as a separate dwelling.
Supreme Court (formerly House of Lords)
 
Elitestone Ltd v Morris
[1997] 1 WLR 687; [1997] 2 All ER 513; (1998) 30 HLR 266; [1997] 2 EGLR 115, HL
 
Bungalow which could not be removed without being destroyed part of land
The defendants occupied a wooden bungalow which rested on concrete pillars, which were attached to the ground on the plaintiff’s land. They occupied under a ‘licence agreement’, which provided for an annual payment and permitted them to enter on to the land and to ‘keep thereon a bungalow and to reside’. The bungalow could not be moved without being demolished. In possession proceedings, the owner claimed that the occupants were merely licensees and not entitled to any statutory security of tenure. An assistant recorder dismissed the plaintiff’s claim for possession. The landlord’s appeal was allowed by the Court of Appeal but the House of Lords restored the order of the assistant recorder.
The House of Lords held that the question to be asked was whether the bungalow was a chattel or realty. After considering the ‘particular facts and circumstances’ and having regard to the purpose of the bungalow, the House of Lords held that, when a dwelling is built in such a way that it cannot be removed without being destroyed, it cannot be intended to remain a chattel and must be taken to form part of the realty. The integrity of the bungalow depended on it remaining where it was and that element of permanence pointed to its having acceded to the ground. The claim for possession was dismissed.
Goodrich v Paisner
[1957] AC 15; [1956] 2 WLR 1053; [1956] 2 All ER 176, HL
 
Tenant’s four rooms a separate dwelling despite sharing other rooms with landlord
A landlord let four unfurnished rooms on the first floor of a house ‘together with the use in common with the landlord of the back bedroom on the first floor’. The tenant also had shared use, with the landlord and others, of the bathroom and lavatories. After the landlord’s death, her successors in title served notice to quit and took possession proceedings.
The House of Lords held that the four rooms were let as ‘a separate dwelling’ with full Rent Act protection.
Uratemp Ventures Ltd v Collins
[2001] UKHL 43; [2002] 1 AC 301; [2001] 3 WLR 806; [2002] 1 All ER 46; (2001) 33 HLR 972; [2002] L&TR 15; (2001) Times 18 October
 
‘Dwelling’ is the place where an occupier lives; no requirement for cooking facilities
The claimant sought possession of a hotel room occupied by the defendant. The room was basically furnished and did not include any cooking facilities, although there was a power point. Breakfast was initially available in the restaurant and included in the rent. Mr Collins brought in a pizza warmer, a toasted sandwich maker, a kettle and a warming plate. HHJ Cotran held that the defendant enjoyed a tenancy of a dwelling-house and that he had an assured tenancy within the meaning of Housing Act 1988. The claimant appealed successfully to the Court of Appeal, contending that he was a licensee as he did not enjoy exclusive possession and that, in any event, the room was not a dwelling-house (Housing Act 1988 s1).
Mr Collins’s appeal was allowed by the House of Lords. Lord Millett, with whom the other members of the House of Lords agreed, said that the word ‘dwelling’ is not a term of art with a specialised legal meaning. It is ‘the place where [an occupier] lives and to which he returns and which forms the centre of his existence … No doubt he will sleep there and usually eat there; he will often prepare at least some of his meals there.’ However, there is no legislative requirement that cooking facilities must be available for premises to qualify as a dwelling. In deciding whether an occupant has security of tenure:
The first step is to identify the subject-matter of the tenancy agreement. If this is a house or part of a house of which the tenant has exclusive possession with no element of sharing, the only question is whether, at the date when proceedings were brought, it was the tenant’s home. If so, it was his dwelling. … The presence or absence of cooking facilities in the part of the premises of which the tenant has exclusive occupation is not relevant.
Note: In the light of this case, the decisions in Central YMCA Housing Association v Saunders (1991) 23 HLR 212, CA and Central YMCA Housing Association v Goodman (1992) 24 HLR 109, CA should no longer be regarded as good law.
Westminster CC v Clarke
[1992] 2 AC 288; [1992] 2 WLR 229; [1992] 1 All ER 695; (1992) 24 HLR 360; (1992) 90 LGR 210, HL
 
Special nature of hostel meant occupant did not have exclusive possession of his room
The council provided a single man with a self-contained bed-sitting room with cooking facilities and its own lockable door in a hostel. The hostel was a council-run, single men’s hostel with a resident warden employed to manage the building, assist residents and enter rooms as necessary with a duplicate key. The occupancy agreement was called a ‘licence to occupy’. It provided that (a) the occupier could be required to share with others (although it was a single room) and (b) the occupier could be required to transfer to a different room on request.
The House of Lords held that, for a licence to be secure under Housing Act 1985, it must confer exclusive possession on the occupier. Here, the agreement and the special nature of the hostel indicated that the council kept such a degree of control over the room that this was not so. Possession was granted.
Court of Appeal
 
Chelsea Yacht and Boat Co Ltd v Pope
[2000] EWCA Civ 425; [2000] 1 WLR 1941; [2001] 2 All ER 409; [2000] 22 EG 147; [2001] L&TR 401; (2001) 33 HLR 245; (2000) Times 7 June, CA
 
Houseboat a chattel and occupant a licensee rather than tenant
The claimant sought possession of a houseboat which had been let to the defendant as his home by the original owner since 1993. It was moored by ropes to pontoons on the Thames at Cheyne Walk and was also held by a chain and anchor. It ran aground at low tide for six hours. The claimant provided water, gas, electricity, telephone and vacuum sewage by means of plug-in or snap-on connections. In the county court it was held that the houseboat was a dwelling-house and was subject to an assured tenancy under Housing Act 1988.
The Court of Appeal allowed the claimant’s appeal. The houseboat was a chattel and had not become part of the land. It was not capable of being the subject of an assured tenancy under Housing Act 1988. The correct considerations relating to the movability of the chattel, the degree of annexation and the degree of permanence were those set out in Elitestone Ltd v Morris (Elitestone Ltd v Morris). The houseboat was not immobile. The fact that it could not move under its own power was not to the point. The tenancy itself had contemplated that the houseboat would be moved. The judge had been wrong to consider that the terms of the tenancy had any relevance when considering the purpose or degree of annexation. On the facts it was difficult to see how the houseboat could have become part of the land. All attachments could be undone without causing any damage to the houseboat or to the land. The defendant had had a contractual licence which had come to an end. Any residual rights which he might have had were effectively dealt with by the notice to quit.
Gray v Brown
(1993) 25 HLR 144; [1993] 1 EGLR 119; [1993] 07 EG 97, CA
 
Clear words reserving right for landlord to live on premises necessary to deprive tenant of protected tenancy
An oral tenancy agreement to rent a room included a term that the tenant would share the house with whoever the landlord might choose. The landlord did not live in the house but contended that the clause meant that, in accordance with Rent Act 1977 s21, the tenancy was a restricted contract (see Rent Act 1977 s19), not a protected tenancy.
However, the Court of Appeal held that the term used was not sufficiently specific to show that the landlord was reserving the right to live there himself in accordance with section 21 and so did not deprive the tenant of protection under section 22. To come within the terms of section 21, the tenancy agreement must include clear words reserving the right of the landlord to live on the premises.
Grosvenor Estates Belgravia v Cochran
(1992) 24 HLR 98; [1991] 2 EGLR 83; [1991] 44 EG 169, CA
 
Basement let under head lease with rest of building not let as a separate dwelling
The lessee under a long lease sublet two basement flats to the defendant for a term in excess of the length of the remainder of the long lease. Legally that took effect as an assignment and not a subtenancy (Milmo v Carreras [1946] KB 306, CA). The defendant started to carry out major works to the flats. Before she moved in, the freeholders issued possession proceedings against the head lessee, claiming that some of the works were in breach of the terms of the lease, and obtained judgment in default against the head lessee. In the meantime, the defendant’s assigned tenancy came to an end on the term date of the original head lease.
The Court of Appeal held that the defendant could not enjoy protection under Landlord and Tenant Act 1954 Part I (a long tenancy at a low rent) because there was no letting of a separate dwelling. The basement was let under the head lease with the rest of the building and so was not ‘subject to a protected or statutory tenancy’. For the same reason, Rent Act 1977 s137 did not give her security of tenure after the head lease expired.
Horford Investments v Lambert
[1976] Ch 39; [1973] 3 WLR 872; [1974] 1 All ER 131; (1973) 27 P&CR 88, CA
 
Premises let as several dwellings not let as ‘a dwelling’
A 19th-century house was let for a term of 20 years. The ground and upper floors were to be sublet as single rooms. The basement was to be sublet as a self-contained flat. The tenant claimed the protection of the Rent Act.
The Court of Appeal held that such a letting for multiple occupation was outside the Rent Act. The premises were let as several dwellings, not as ‘a dwelling’. The terms of the tenancy, not subsequent events, are the primary consideration when deciding whether premises are let as a separ-ate dwelling.
Kavanagh v Lyroudias
[1985] 1 All ER 560; (1983) 10 HLR 20; (1984) 269 EG 629, CA
 
Where occupant did not occupy premises separately from adjoining premises he was not a statutory tenant
The defendant occupied a house (no 21) from 1955, but it was too small for him. As a result, in 1973 the landlord granted him a tenancy of an adjoining house (no 23), which was almost identical. The tenant slept in no 23 and used the study there. However, he never cooked or ate there. The landlord served a notice to quit in respect of no 23 and brought possession proceedings. A county court judge dismissed the claim for possession, finding that the defendant was the statutory tenant of no 23.
The landlord appealed successfully. The Court of Appeal indicated that the judge should have considered whether no 23 ‘was occupied separately from the adjoining premises as a complete home in itself’. The defendant did not satisfy that test. Leave to appeal to the House of Lords was granted, but not pursued.
Note: See also comments on this decision by the House of Lords in Hampstead Way Investments Ltd v Lewis-Weare (Hampstead Way Investments Ltd v Lewis-Weare).
Mansfield DC v Langridge
[2008] EWCA Civ 264; (2008) HLR 34; 13 February 2008
 
The conditions of Housing Act 1985 s79 were satisfied where a licence agreement gave exclusive possession of the flat as a separate dwelling in return for the payment of a rent
Mr Langridge was the secure tenant of a house. After allegations of nuisance, Mansfield issued a possession claim, but the proceedings were stayed when Mr Langridge received life-threatening injuries from a serious assault. When he left hospital, he moved into a hostel and his mother gave up the keys of the house to Mansfield to enable the council to clean it up. After Mr Langridge issued a claim for an injunction for the return of the keys, Mansfield made a flat, which was supported accommodation, available to him on licence until the resolution of the possession proceedings. Mr Langridge signed an agreement to occupy the flat on a temporary basis as a licensee. The agreement provided that it did not create a secure tenancy. In a letter, it was stated that the agreement was purely for the purpose of providing temporary accommodation pending trial of the possession proceedings. Subsequently, Mansfield obtained a possession order in respect of the house. The council then served notice to quit before issuing proceedings for possession of the flat. HHJ O’Rorke found that it had been the parties’ mutual intention that the agreement should be limited in time until the conclusion of the earlier possession claim and that nothing had altered that mutual intention or the nature of the licence. The flat was not a separate dwelling (Housing Act 1985 s79(3)). He made an order for possession. Mr Langridge appealed. Calvert-Smith J dismissed the appeal ([2007] EWHC 3152 (QB); 21 September 2007; February 2008 Legal Action 37).
The Court of Appeal allowed a second appeal. The licence agreement gave Mr Langridge exclusive possession of the flat as a separate dwelling in return for the payment of a rent. In those circumstances, the conditions of s79 were satisfied. Accordingly, despite the intentions of both parties, the licence agreement conferred a secure tenancy of the flat.
Mew v Tristmire Limited
[2011] EWCA Civ 912; (2011) Times 12 August; 28 July 2011
 
There can only be a tenancy of a houseboat if it becomes part of the landTimes 7 June, CA
There were a number of plots on Embankment Road, Bembridge Harbour which were covered by the sea at high tide. On one of the plots, there was a houseboat named ‘Emily’. It was a converted landing craft constructed during World War II, which was later modified by the addition of a super-structure so as to make it watertight and habitable. It was once capable of floating but now rested on a wooden platform which was supported by wooden piles driven into the bed of the harbour. It could only be removed from the platform by the use of a crane with an extensive supporting cradle. It had mains services such as water, electricity and gas but these could easily be disconnected. Mr Mew purchased ‘Emily’ in 1993. The purchase agreement contained a covenant by Mr Mew with the vendor to ‘pay all harbour dues and any other fees, tolls or other sums due for mooring’ but did not include an assignment of the tenancy or licence under which the site was occupied (para 10). Initially, he paid a ‘site-rent’ of £96 for his plot quarterly in advance. Tristmire bought a long lease of the plot at auction from the freeholder, the Bembridge Harbour Improvements Company Limited (‘BHIC’) in June 2007. In July 2007, Tristmire gave notice terminating Mr Mew’s licence and requiring him to deliver up possession on 31 August 2007. It then issued a possession claim. Mr Mew served a defence contending that he occupied the plot as a tenant, that ‘Emily’ was a dwelling-house and that he was an assured tenant under the Housing Act 1988. His Honour Graham Jones held that ‘Emily’ had not become annexed to the land and so was not a dwelling-house. Mr Mew was merely a licensee. Mr Mew appealed.
The Court of Appeal dismissed the appeal. Patten LJ said that there could only have been a tenancy if the houseboat (as well as the wooden platform) had become part of the land. If the correct analysis was that it remained a chattel removable (although with some difficulty) by the tenant at the end of the lease then the conditions for an assured tenancy were not satisfied. Annexation so as to become part of the realty is a question both of intention and degree. The current state of repair of ‘Emily’ was irrelevant. After referring to Elitestone Ltd v Morris (Elitestone Ltd v Morris) and Chelsea Yacht and Boat Co Ltd v Pope (Chelsea Yacht and Boat Co Ltd v Pope), Patten LJ said that whatever condition ‘Emily’ may now be in, it was, on the judge’s findings, a structure which could have been removed without being dismantled or destroyed in the process. Like a caravan, it was moveable. The overwhelming inference was that the licence or tenancy of the plot did not extend to the houseboat but continued to be limited to the plot and the supporting platform which BHIC had provided for the owner of the houseboat. The judge was right to conclude that the houseboat had not become affixed to the land and that the defendant was not an assured tenant.
Miller v Eyo
(1999) 31 HLR 306, CA
 
Landlord had no right to enter premises and share with tenant in absence of clear term
The defendant landlord appealed against an award of £21,804 damages for illegal eviction, including an award of £18,000 under Housing Act 1988 ss27 and 28. She did not challenge the quantum, but claimed that the plaintiff did not have an assured tenancy at the time of her eviction. The terms of the plaintiff’s tenancy were that she had exclusive use of her bedroom with shared use of a living room, kitchen and bathroom/lavatory. Initially the only other bedroom in the flat was occupied by another tenant, but when she moved out the landlord and her family moved into the other bedroom and started to share the other parts of the flat with the plaintiff. The plaintiff claimed that the landlord was not entitled to take up possession of the part of the property not let to her and that, in view of Housing Act 1988 s3, she was an assured tenant.
The Court of Appeal accepted this submission and dismissed the landlord’s appeal. Following Gray v Brown (Gray v Brown), the Court of Appeal held that the trial judge was correct in finding that, in the absence of an express term in the tenancy, the landlord had no right to re-enter and occupy. Accordingly, the tenancy came within s3 and was assured. For a landlord to avoid this situation, a landlord’s right to re-enter and share must be ‘clear and specific’.
Mortgage Corporation v Ubah
(1997) 29 HLR 489; (1997) 73 P&CR 500, CA
 
Issue is whether sharing arrangement with landlord is exercisable, not whether it is actually shared
The tenancy of a maisonette included a right for the landlord to use the kitchen in common with the tenant. After the landlord had fallen into arrears with his mortgage, the mortgagee repossessed the property, subject to the tenancy, which had preceded the grant of the mortgage. The tenant argued that the mortgagee, as a corporation, ‘being a mere creature of the law without appetite or culinary capability was incapable of submitting to a shared use of its kitchen because it could not itself make use of the kitchen at all’. The judge rejected this submission and found that the defendant merely had a restricted contract (see Rent Act 1977 s19). He appealed.
The Court of Appeal dismissed his appeal. Waite LJ found it unnecessary to decide whether a company was capable of sharing a kitchen. He held that the true issue was whether the sharing arrangements remained exercisable. As landlords ‘came and went’ the right to share the kitchen was ‘merely in abeyance’ and, if the landlord’s interest passed to an individual, it would once again become possible and practicable for the rights of kitchen user to become common rights. The Court of Appeal also found that the tenant was not entitled to set off against rent due to the Mortgage Corporation sums which, with the agreement of the former owner, he had spent on repairs and which the former owner had accepted were due to be reimbursed to the tenant. This was not an agreement binding on successors in title and, accordingly, could not be an overriding interest in accordance with Land Registration Act 1925 s70(1)(g).
Parkins v Westminster CC
[1998] 1 EGLR 22; [1998] 13 EG 145, CA
 
Where occupant of council flat shared with others he was a licensee
Mr Parkins was employed as a teacher. As part of a staff accommodation scheme he was offered a room in a flat consisting of three bedrooms, a kitchen, a living room, a bathroom and separate lavatory. He signed a licence agreement and was given the keys to the flat and the room. Another teacher was allocated another room in the flat and signed a similar agreement. Later, the plaintiff was dismissed and the council served a notice to quit. At first instance it was held that he was a secure tenant, and the council’s claim for possession was dismissed.
The Court of Appeal allowed the council’s appeal. Although the flat could be let ‘as a separate dwelling’ because there was a separate sitting room with facilities for cooking and a bathroom and lavatory, the individual room did not satisfy those requirements on its own. Mr Parkins only had exclusive possession of the room. He did not have exclusive possession of the flat as a separate dwelling and so he did not occupy it under a secure tenancy.
St Catherine’s College v Dorling
[1980] 1 WLR 66; [1979] 3 All ER 250; (1979) 39 P&CR 110; (1979) 251 EG 265, CA
 
Where lease indicated house let as a number of units, it was not let as separate dwelling
The owner of a furnished house let it to the college for occupation by five separate subtenants. Each had a room to be used as a bedroom, study and sitting room. They shared a kitchen and bathroom. The college then applied to the rent officer to register a fair rent. A county court judge refused to grant the college a declaration that its tenancy enjoyed Rent Act protection because the house was not let as a separate dwelling. There were a number of individual subtenancies, not a joint subtenancy.
The college’s appeal was dismissed. The clause in the college’s lease whereby it covenanted to use the house ‘as private residence only in occupation of one person per room’ was to be interpreted as showing that it was intended that the house was to be let as a number of units and not ‘as a separate dwelling’.
Spielplatz Ltd v Pearson
[2015] EWCA Civ 804; [2015] HLR 40; [2015 2 P&CR 17; [2016] L&TR 12, 28 July 2015
A chalet was held to be a dwelling and an assured tenancy
Spielplatz was the freehold owner of a woodland naturist resort near St Albans. Mr and Mrs Pearson occupied a plot under a tenancy agreement dated 14 August 1992. At the same time that they were granted the tenancy, they bought a chalet on the plot from the previous occupants. Spielplatz claimed possession asserting that there was an unprotected common law tenancy which it had determined by a notice to quit. The Pearsons’ claimed that the tenancy was an assured tenancy under Housing Act 1988, which Spielplatz had not determined in accordance with that Act, nor had it shown any ground entitling it to possession. The Pearsons’ evidence was that in 2008 they put breeze blocks around the outside of the chalet and rendered it. In 2011, they put on a new roof. In 2012, they refurbished or ‘virtually rebuilt’ much of the building following a leak into the bathroom. They estimated they spent about £100,000 on the works. It was impossible to move a building of its size in either one or two pieces. It could only be moved ‘by being taken back to its constituent parts’. After considering Elitestone Ltd v Morris (Elitestone Ltd v Morris), HHJ Lindsay Davies found the chalet was part and parcel of the plot and so there was an assured tenancy. She dismissed the claim for possession.
The Court of Appeal dismissed Spielplatz’s appeal. Given the evidence relating to the construction of the chalet, the judge’s finding that the chalet had become part of the land ‘was probably the only finding she could properly have made’. [37]
Tyler v Kensington and Chelsea RLBC
(1991) 23 HLR 380, CA
 
Licence to occupy flat contingent on tenancy of other flat and lost on buying other flat
The plaintiff was the secure tenant of a ground floor flat. Because of its poor condition, and so that building works could be undertaken on the ground floor, the council gave him permission also to occupy the first floor flat in the same building. Work was never started and the tenant simply occupied both flats. He then submitted an application to buy the two flats together as a single unit. In subsequent proceedings in 1987, HHJ Oddie found that there was not a single letting but two separate units and, therefore, they could not be purchased under a single right to buy (compare Jenkins v Renfrew DC (1989) SLT (Lands Tr) 41). Accordingly, the tenant arranged his affairs so that the ground floor flat became his principal home and in 1988 he applied to buy that alone. His right to buy was accepted and the lease conveyed. On the day of completion he moved upstairs to take up occupation of the first floor flat as his ‘principal’ home and then claimed the right to buy that.
The Court of Appeal held that the licence to occupy the first floor flat had been contingent on a continuing tenancy of the ground floor. As the tenant had purchased the ground floor flat, the tenancy had ended and with it the contingent first floor licence. The occupier was an ex-licensee or trespasser in the first floor flat, could not be secure, and so did not have the right to buy.
High Court
 
Gilpin v Legg
[2017] EWHC 3220 (Ch), 13 December 2017
 
Occupiers of beach huts had unprotected periodic tenancy of the land on which they were situated, but not the huts themselves
The claimants asserted that they had five yearly, or alternatively annual, periodic tenancies of the plots of land on which they (or their predecessors) had constructed beach huts. The defendant, who owned the land asserted that the claimants had licences for one year at a time to station their respective huts on the land. He wrote to a number of hut owners on 23 December 2014, serving what was called ‘a notice of termination’ of their licences, requiring vacant possession by 31 March 2015. On 10 June 2015, his solicitors wrote stating that if the hut owners did not remove their huts he would instruct contractors to do so. The hut owners sought a declaration that the notices were invalid and a prohibitory injunction to prevent interference with the quiet enjoyment of their use of the huts. In September 2015, without prejudice to the earlier notices, the defendant served notices to quit which were appropriate to determine a tenancy from year to year.
HHJ Paul Matthews, sitting as a Judge of the High Court, found that at the time that each hut was placed on its plot, it could have been moved by disassembly and reassembly elsewhere, and, in most cases, also by lifting by crane without the need for disassembly. That remained the position at the time of the trial for most of the huts. After considering Elitestone Ltd v Morris (Elitestone Ltd v Morris) and Mew v Tristmire Ltd (Mew v Tristmire Limited), he decided that the huts were chattels because there was either no annexation at all to the land, or only a very slight degree of annexation. He concluded that the claimants each had a periodic tenancy (from year to year) of the plot on which their hut rested. Therefore, the December 2014 notices, giving notice of less than half a year, were of no effect in law, but the September 2015 notices were effective to terminate the tenancies from the end of March 2016.
R v Rent Officer of Nottinghamshire Registration Area ex p Allen
(1985) 17 HLR 481; (1985) 52 P&CR 41; [1985] 2 EGLR 153; (1985) 275 EG 251, QBD
 
Large caravan moved from time to time not a house
A large caravan was rented out at a high rent. The local authority made an application to the rent officer for registration of a fair rent because the occupant was receiving housing benefit. The owner sought an order of certiorari to quash the registration.
Farquharson J held that a caravan could be a house within the meaning of Rent Act 1977 s1 if it had been made completely immobile by the removal of its wheels, or because it was blocked up by some concrete or brick structure. However, in this case, the caravan was moved from time to time and the services were easily disconnected. Therefore, it was not a ‘house’.
Occupation as only or principal home: Housing Act 1985 s81 and Housing Act 1988 s1(1)(b); Prohibition against subletting: Housing Act 1985 s93 and Housing Act 1988 s15A
 
Occupation as only or principal home; Prohibition against subletting
Both Housing Act 1985 s81 (the ‘tenant condition’) and Housing Act 1988 s1(1)(b) provide that security of tenure can only be gained and retained if tenants occupy premises as their ‘only or principal home’.
The requirement in Housing Act 1985 s81 is that:
the tenant is an individual and occupies the dwelling-house as his only or principal home; or, where the tenancy is a joint tenancy, that each of the joint tenants is an individual and at least one of them occupies the dwelling-house as his only or principal home.
The requirement in Housing Act 1988 s1 is that:
the tenant or, as the case may be, each of the joint tenants is an individual; and … the tenant or, as the case may be, at least one of the joint tenants occupies the dwelling-house as his only or principal home.
The requirement for Rent Act protected tenants is different – see C4 below.
Security of tenure is lost if secure tenants cease to occupy premises as their only or principal home or if they sublet or part with possession of the whole of them (Housing Act 1985 s93 and Housing Act 1988 s15A). It is possible for tenants to have two or more homes, but only the one which is the ‘principal’ home can be secure or assured.
Court of Appeal
 
Brent LBC v Cronin
(1998) 30 HLR 48, CA
 
Where tenant sublet premises and stayed with a relative temporarily, s93 applied
A disabled council tenant left his one-bedroomed home temporarily to stay with a relative. Through a friend, he found a young couple willing to occupy the flat in his absence. They paid a £20 deposit, agreed a rent of £40 per week, were given the keys, moved in and began redecorating. The council brought possession proceedings on the basis that security of tenure had been lost by subletting or parting with possession (Housing Act 1985 s93(2)) or that the tenant was in breach of the implied term not to sublet without consent (s93(1)(b)). The trial judge found that the tenant had got himself into a muddle and had never really intended to sublet at all.
The Court of Appeal allowed the council’s appeal and granted possession. The judge had found that the oral agreement contained all the hallmarks of a (sub)tenancy. Neither the tenant’s intention to return after a short while nor his uncertainty about his plans had ever been communicated to the subtenants and, even if they had been, they would have been unlikely to have turned the subletting into something else.
Camden LBC v Alexandrou
(1998) 30 HLR 534, CA
 
Possession ordered where tenant treated as having assigned his interest to joint tenant
Camden LBC v Goldenberg
(1996) 28 HLR 727; (1997) 73 P&CR 376; (1997) 95 LGR 693, CA
 
Residence test satisfied where occupant intended to return to grandmother’s flat – intention not displaced by intention to set up home elsewhere if he could
Crawley BC v Sawyer
(1988) 20 HLR 98; (1988) 86 LGR 629, CA
 
Intention to return after temporary absence coupled with physical sign of continued occupation satisfies residence requirement
In 1985 the defendant council tenant went to live with his girlfriend. During 1985 and 1986, the gas and electricity supplies to his premises were cut off. In July 1986 he told the council that he was ‘living with his girlfriend’ and that they intended to buy her home. In August 1986, the council served a notice to quit, expiring on 30 September. By that time the relationship between the defendant and his girlfriend had broken up and, shortly after the expiry of the notice to quit, the defendant returned to live in his own home. In possession proceedings, the defendant gave evidence that he had not abandoned the premises and that he had always intended returning to them.
The Court of Appeal confirmed that, in order to maintain a ‘home’, a tenant need not be physically resident, so long as there is an intention to return after a temporary absence and some physical sign of continued occupation (eg, furniture and possessions in the property). Two houses can be occupied as a home at the same time. On the evidence before the trial judge, he was entitled to form the view that the defendant was only occupying his girlfriend’s home on a temporary basis and that his own home remained his principal home throughout the period.
Gay v Sheeran
[2000] 1 WLR 673; [1999] 3 All ER 795; (1999) 31 HLR 1126; (1999) Times 30 June, CA
 
Tenancy cannot be transferred under Family Law Act 1996 where residence requirement no longer satisfied or deemed satisfied; part interest in joint tenancy cannot be transferred
The council granted a joint secure tenancy to Mr Sheeran and his then partner, Ms Gunn. She left and Ms Gay moved in to live with him as his new partner. Mr Sheeran then left the property. Ms Gay applied for transfer of his interest in the joint tenancy into her name (Family Law Act 1996 s53 and Sch 7).
The Court of Appeal held that: (1) a tenancy can only be vested pursuant to s53 if it is a ‘secure’ tenancy at the date the order for transfer is sought or made; (2) the tenancy was not ‘secure’ in this case because neither joint tenant was occupying at either date (Housing Act 1985 s81) and Ms Gay had not before either date obtained an ‘occupation order’ capable of deeming her to be satisfying the occupation condition (Family Law Act 1996 s36(13)); and (3) there is in any event no power to order transfer of a part interest in a joint secure tenancy unless the only joint tenants are the applicant and respondent themselves. Here, there would have been no jurisdiction because the tenancy was held jointly with a third party (Ms Gunn).
Hammersmith and Fulham LBC v Clarke
(2001) 33 HLR 881; (2001) 81 P&CR D41, CA
 
Date of expiry of NTQ is date for determining whether premises are tenant’s only or principal home; ‘enduring intention’ rather than ‘fleeting changes of mind’ relevant
A frail elderly secure tenant occupied her council home from 1981. It was adapted for her needs. In 1997 her grandson and his wife moved in to look after her and she later submitted a right-to-buy application jointly with her grandson. In November 1998 she was admitted to a nursing home experiencing depression in addition to physical disabilities. Her furniture remained in her home and the grandson and his wife continued living there. Whilst in the nursing home in January 1999 she signed a social worker’s note that she had decided to become a permanent resident of the nursing home and that it was ‘not now my choice’ to live in her former home. The council served notice to quit in February 1999 and, on its expiry in March, claimed possession. By the date of trial the tenant had returned to live in her home. The trial judge accepted her evidence that: (1) she had initially gone to the nursing home intending to move back; (2) the note had been made at a time when she was very depressed and had just had her medication sorted out; and (3) she ‘had every intention of returning’. He dismissed the possession claim. The council appealed contending that the material date for determining whether an absent tenant had an intention to return was the date of the expiry of the notice to quit. Evidence as to earlier or subsequent intention was immaterial and the social worker’s note was the best evidence of intention at date of expiry.
The Court of Appeal agreed that the position was to be considered as at the date of the expiry of the notice but dismissed the appeal. It held that, in determining whether an absent tenant was still ‘occupying’ premises, a court should focus on ‘the enduring intention of that person’ and not on ‘fleeting changes of mind’. That was particularly true of an elderly tenant in poor health whose intentions ‘may well have fluctuated from time to time and even from day to day’. The judge was entitled to find in this case that the note did not represent the tenant’s more general and enduring intent which was borne out by her evidence, by the continuing presence of her family and furniture in her adapted home, and all the other circumstances.
Havering LBC v Dove
[2017] EWCA Civ 156; [2017] HLR 19, 22 March 2017
 
Court entitled to find that twin-sisters were not occupying flat as their only or principal home when they spent several days each week staying with long-term partners elsewhere
The defendants, who were twin sisters, were secure tenants of a flat. Both spent several days each week with long-term partners who lived elsewhere. The council carried out an investigation and produced a report stating that the property was not normally occupied by either sister. On the basis of the report, housing benefit and council tax benefit were withdrawn from both of them. Havering served a notice to quit, arguing that the tenancy was no longer secure and, in the alternative, a notice seeking possession relying on rent arrears. In the subsequent possession claim, HHJ Bailey refused an application for an adjournment to obtain legal aid and made a possession order. He held that the doctrine of issue estoppel determined the question whether the property was their only or principal home, because it was difficult to conceive of a situation where the test for housing benefit would produce a different outcome from the only or principal home test. He also held that: even if he were wrong on the estoppel issue, the property was not in fact the only or principal home of either sister; there was no prospect that they would be able to pay their rental arrears; it was reasonable to make an order for possession; and neither of them could resist the order on the basis of Human Rights Act 1998 Sch 1 Article 8 in the light of their personal circumstances. The sisters were granted permission to appeal: [2016] EWCA Civ 680.
The Court of Appeal dismissed the appeal. It rejected a procedural ground of appeal based on the judge’s refusal to adjourn. In addition to the general undesirability of adjourning a trial, there were a number of factors specific to this case that militated against an adjournment. First, the application was made very late. Second, the cause of the difficulty was Ms Dove’s legal representatives’ tardiness in applying for an extension of legal aid. Third, the trial date had already been adjourned once before. Fourth, rent at the full rate had not been paid for many years. There was no realistic prospect that the sisters could pay off the arrears or even pay the current rent. Fifth, there was no realistic prospect that they could pay the costs thrown away by an adjournment. Sixth, an adjournment would have caused disruption and inconvenience to other court users. Seventh, there was no certainty that an adjournment would serve any useful purpose. What weight to give each of these factors was essentially a matter for the judge. The Court of Appeal should not interfere with case management decisions of this kind unless compelled to do so.
Turning to the substantive ground of appeal, Lewison LJ noted that there are two parts to the question of what amounts to occupation of a dwelling as an only or principal home, namely: (a) does the person in question occupy the dwelling as a home? (b) If so, does s/he occupy it as his/her only or principal home? The Court of Appeal was not required to resolve the question of whether the decision of the First-tier Tribunal created an issue estoppel between Havering and the sisters because the judge heard the evidence and made his own findings of fact, and came to the same conclusion as the tribunal. The judge’s findings of fact were that neither of the sisters was occupying that flat as her principal home. He was entitled to reach that conclusion. Neither, therefore, was a secure tenant. Havering was entitled to possession without the need to prove a statutory ground.
Hussey v Camden LBC
(1995) 27 HLR 5, CA
 
Tenant who has lost secure status can regain it by resuming occupation; parting with possession not to be inferred simply from temporary occupancy by others
Camden, as landlord, served a notice to quit and claimed possession. It contended that the tenant had lost security by failing to occupy and, in the alternative, asserted that security had been lost by parting with possession. A county court judge found for the council on the first proposition. He determined that the tenant had ceased to occupy as his only or principal home in 1986 and that security of tenure had thus been lost, despite his return to the property before service of notice to quit (Housing Act 1985 s93).
The Court of Appeal allowed the tenant’s appeal. It was perfectly possible for a tenant to have lost security of tenure through non-occupation in the past and, thereafter, to regain it by reoccupying the property before service of a notice to quit. Since the tenant was occupying the property as his only or principal home at the time of service of the notice to quit, the earlier loss of security was irrelevant. The Court of Appeal also held that there was insufficient evidence before the judge to establish any parting with possession. Parting with possession was not to be inferred simply from the fact that another person had been allowed to use and occupy the tenant’s home during his temporary absence (Lam Kee Ying v Lam Shes Tong [1975] AC 247, PC).
Islington LBC v Boyle and Collier
[2011] EWCA Civ 1450; [2012] HLR 18, 6 December 2011
 
The question of whether a tenant occupies premises as their only or principal home is an objective test and a question of fact; long absences will give rise to a presumption that the tenant has ceased to occupy the premises as his only or principal home
In 1996, Islington granted Ms Boyle a secure tenancy of a two-bedroom flat. She lived there with her partner, Mr Collier, and their three children. Their son was severely autistic and suffered from epilepsy and Tourette syndrome.
In 1999 he started attending a special school for autistic children in north London. In 2004, the relationship between Ms Boyle and Mr Collier broke down. Mr Collier moved out and bought a house in Suffolk. However, later that year, in view of their son’s increasingly aggressive conduct and inappropriate behaviour towards his sisters, Ms Boyle and Mr Collier decided that she and her daughters would move out of the flat and live in the Suffolk house, and Mr Collier would move back into the flat and care for their son. The personal belongings of Ms Boyle and her daughters were moved to Suffolk. Large pieces of her furniture remained in the flat. Ms Boyle was registered with a local GP in Suffolk. Her daughters were entered into a local school. Ms Boyle initially intended the move to the Suffolk house to be a temporary one for six months, but it became prolonged. Meanwhile, Mr Collier, with her permission, dishonestly submitted applications for benefits on the basis that she remained living in the flat and had care of their son. In January 2007, Ms Boyle and Mr Collier wrote a letter to Islington in which they acknowledged that they had not gone about matters properly in relation to the tenancy and claims for benefits. They asked permission for Mr Collier to live in the flat so that their son could remain in London. Islington did not accept the proposed arrangement. In October 2007, a housing officer asked Ms Boyle whether the Suffolk house was her principal home. She replied that she was living in the country. The same month, Islington served a notice to quit on Ms Boyle. In September 2008, Ms Boyle moved back into the flat, and Mr Collier and their son went to live with the two daughters in the Suffolk house. Islington brought a possession claim.
HHJ Matheson dismissed the claim.
The Court of Appeal allowed Islington’s appeal. Etherton LJ summarised the principles to be applied in determining whether a tenant continues to occupy a dwelling as his/her home despite living elsewhere:
First, absence … may be sufficiently continuous or lengthy or combined with other circumstances as to compel the inference that, on the face of it, the tenant has ceased to occupy the dwelling as his or her home. In every case, the question is one of fact and degree. Secondly, assuming the circumstances of absence are such as to give rise to that inference: (1) the onus is on the tenant to rebut the presumption that his or her occupation of the dwelling as a home has ceased; (2) in order to rebut the presumption the tenant must have an intention to return; (3) while there is no set limit to the length of absence and no requirement that the intention must be to return by a specific date or within a finite period, the tenant must be able to demonstrate a ‘practical possibility’ or ‘a real possibility’ of the fulfilment of the intention to return within a reasonable time; (4) the tenant must also show that his or her inward intention is accompanied by some formal, outward and visible sign of the intention to return, which sign must be sufficiently substantial and permanent and otherwise such that in all the circumstances it is adequate to rebut the presumption that the tenant, by being physically absent from the premises, has ceased to be in occupation of it. Thirdly, two homes cases … must be viewed with particular care … Fourthly, whether or not a tenant has ceased to occupy premises as his or her home is a question of fact. In the absence of an error of law, the trial judge’s findings of primary fact cannot be overturned on appeal unless they were perverse, in the sense that they exceeded the generous ambit within which reasonable disagreement about the conclusions to be drawn from the evidence is possible; but the appeal court may in an appropriate case substitute its own inferences drawn from those primary facts (para 55).
However, in relation to secure tenants, it is not enough to satisfy the tenant condition that the tenant occupies the dwelling as his/her home (Housing Act 1985 s81): the dwelling must be occupied as the tenant’s only or principal home. Where tenants are physically absent from dwellings, their intentions about living there again as the sole or principal home will be critical. It is not sufficient, however, for the tenant merely to give oral evidence of his/her subjective belief and intention. The credibility of such evidence as to belief and intention must be assessed by reference objectively to ascertained facts. The reason for the absence, the length and other circumstances of the absence and (where relevant) the anticipated future duration of the absence, as well as the statements and conduct of the tenant, are all relevant to that objective assessment.
Where a notice to quit has been served to terminate the contractual tenancy, the tenant condition must be satisfied on the expiry of the notice to quit. What happened before the expiry of the notice to quit and what happened after it may, nevertheless, throw light on whether the tenant condition was satisfied at the date of expiry of the notice to quit. In this case, the judge did not consider whether or not the flat was Ms Boyle’s principal home and so the Court of Appeal remitted the possession claim to the county court.
Jennings v Epping Forest DC
(1993) 25 HLR 241, CA
 
Secure status and right to buy lost when tenants left
The joint tenants were an elderly couple. The man moved to a nursing home and the woman took a flat close to the nursing home to be near to him. Their daughter arranged for their council home to be sublet. In proceedings concerning the right to buy, the Court of Appeal held that secure status had been lost and with it the right to buy.
Lambeth LBC v Vandra
[2005] EWCA Civ 1801; [2006] HLR 19
 
Judge entitled to find unlawful subletting in absence of credible explanation by tenant
The defendant was a secure tenant. A housing officer visited the premises on two occasions and concluded that the tenant had unlawfully sublet and was no longer occupying as her only or principal residence. As a result, Lambeth served a notice to quit and took possession proceedings. A district judge found that: (1) the defendant had not been in occupation of the premises at the time of either of the housing officer’s two visits; (2) there was no evidence or sign of any family occupation of the premises by the defendant or her four children; (3) five or more people who were in occupation had been met during the two visits; (4) there were Yale locks on all the doors and one had a padlock; (5) there was no sign of any room being used as a living room and there were beds in all the rooms which the housing officer saw; and (6) four of the occupants said that they paid rent to a person whom the defendant claimed to have put into occupation of the premises rent-free as a caretaker. In the light of those facts, the district judge found that an explanation was called for by the defendant. The explanations offered by the defendant were not accepted by the district judge as credible. The district judge concluded that the whole of the premises had been unlawfully sublet, and that the defendant had ceased to be a secure tenant. She made an order for possession. The defendant appealed and a circuit judge found that the district judge had erred in reversing the burden of proof. He found that, on the evidence, it was possible that the defendant had only let part of the premises, allowed the appeal and set aside the order for possession. Lambeth appealed to the Court of Appeal.
The Court of Appeal allowed the appeal. The district judge had been entitled to come to her conclusions, and the circuit judge had been wrong to interfere with them. The fact that there was another possible explanation for the various people who appeared to be living in the property did not mean that there was no evidence or insufficient evidence for the inference made by the district judge from the primary facts found as to the subletting of the whole property. The claimant’s evidence required the defendant to explain why she was not living at the flat and other occupants were. The district judge was entitled to make inferences of probability from established primary facts and was entitled to conclude there had been an unlawful subletting of the whole of the premises.
Note: This decision is in line with earlier Rent Act authorities that (1) the burden of proof initially lies on a landlord to show that a tenant is absent; but (2) once a landlord has established this, it is for the tenant to show a physical presence in the premises and an intention to return (see eg, Roland House v Cravtitz (1974) 29 P&CR 432, CA).
Merton LBC v Salama
June 1989 Legal Action 25, CA (CAT 89/169)
 
Consideration needed as to whether tenant had parted with possession of whole or part
A secure tenancy was granted in 1980. In 1986 the tenant bought other premises and moved out, allowing a third party into occupation. In 1987 the tenant moved back in, with the third party still present. Later the same year, the council purported to end the tenancy by notice to quit. The tenant responded by giving the third party notice to quit and counterclaimed (in an action for harassment brought by the third party) for possession. In those proceedings, the county court ruled that the third party was a subtenant. The council then brought proceedings for possession against the tenant, based on its earlier notice to quit and the findings of fact in the earlier action that the tenant had parted with possession (see Housing Act 1985 s93(2)).
Allowing the tenant’s appeal against a 28-day possession order and remitting the case for retrial, the Court of Appeal held that the tenant should be given the opportunity of raising the defence that she had parted with possession of part rather than the whole of the property. If the landlord felt that that issue had already been settled in earlier proceedings, it could apply to strike out the defence as an abuse of process.
Muir Group Housing Association Ltd v Thornley
(1993) 25 HLR 89; [1993] 1 EGLR 51; [1993] 10 EG 144; (1992) 91 LGR 1, CA
 
Secure status lost by subletting; tenant could not compel completion of right to buy
A secure tenant exercised the right to buy in May 1989, but in October 1989 (before the purchase was completed) moved out and sublet the whole house on an assured shorthold tenancy at a profit rent. The landlords alleged that, by operation of Housing Act 1985 s93, secure status had been lost by the subletting and that a subsequent notice to quit had determined the remaining contractual tenancy. The tenant alleged that the right to buy had already arisen and been admitted by the landlord, who was thus compelled to convey the house.
The Court of Appeal held that secure status had been lost by the subletting. Furthermore, applying Sutton LBC v Swann (Sutton LBC v Swann), it held that a tenancy had to be secure for the tenant to have the right to compel completion of the right to buy. Possession was granted.
Sutton LBC v Swann
(1986) 18 HLR 140, CA
 
Where security lost by subletting, tenant could not finalise exercise of right to buy
The secure tenant of a council flat made an application under the ‘right to buy’ scheme. He then bought a different house and moved out of his flat and into the house. He subsequently again applied to buy the flat. The council responded with a notice to quit and possession proceedings in respect of the flat.
The Court of Appeal held, granting possession, that the tenant had lost his secure status on ceasing to occupy the flat and that Housing Act 1980 s16(11) (now Housing Act 1985 s139(2)) required the tenancy to be secure in order to perfect acquisition under the right to buy scheme.
Ujima Housing Association v Ansah
(1998) 30 HLR 831, CA
 
Viewed objectively a tenant who had sublet premises did not have intention to occupy
The defendant was an assured tenant. He sublet the entire flat on an assured shorthold tenancy on terms which were inconsistent with his remaining in occupation as his only or principal home. The rent under the subtenancy was a market rent which was £90 more than the rent that the defendant paid. He left furniture in the flat, but no personal possessions. Ujima served a notice to quit and brought possession proceedings. The trial judge held that the defendant had security since he continued to occupy the flat as his principal home.
Ujima’s appeal was allowed by the Court of Appeal. The test introduced by the Housing Act 1988 was strict and, since the defendant was no longer in physical occupation, the onus was on him to establish that he was still occupying the flat as his principal home. He had granted the right to immediate occupation to others and was unable to return unless they voluntarily surrendered it to him. Viewed objectively, the defendant did not have the intention to preserve his occupation of the flat as his principal residence.
Zionmor v Islington LBC
(1998) 30 HLR 822; March 1998 Legal Action 10, CA
 
No inference that tenant had intended to give up tenancy where friend and possessions left in property
High Court
 
Amoah v Barking and Dagenham LBC
(2001) 81 P&CR D12; March 2001 Legal Action 28; 23 January 2001, ChD
 
Prisoner serving long sentence had not ceased to occupy as only or principal home
Mr Amoah was a secure tenant. On 18 April 1997, he was sentenced to 12 years’ imprisonment. He left items of furniture in the property and appointed a relative to act as ‘caretaker’ in his absence. The council served a notice to quit and obtained a possession order on the basis that Mr Amoah had lost his status as a secure tenant.
Mr Amoah appealed successfully. Etherton J held that he had retained his secure status. Whilst there was some doubt as to the evidence of a resident caretaker, an intention to return could in any event be evinced by other factors. Brickfield Properties v Hughes (Brickfield Properties Ltd v Hughes) made clear that the presence of furniture alone for a period of nine years could be sufficient to show an intention to return. Mr Amoah had already been transferred to open conditions and had visited the property when able to do so. Furthermore, it was clear that the property was the only accommodation in which the appellant could and would reside on his release. In those circumstances, the fact that the appellant had left furniture in the property was of itself sufficient to show an outward visible sign of an intention to return. Etherton J drew the following principles from the authorities:
(1) Absence by a tenant might be sufficiently prolonged to raise a presumption that the tenant was no longer a secure tenant. Whether or not that was the case was a matter of fact and degree; (2) Assuming an absence of this length (a) the onus was on the tenant to rebut the presumption; (b) the tenant had to establish a de facto intention to return; (c) whilst there was no set limit to the length of any absence, a tenant was required to show that there was a practical or real possibility of the fulfilment of his intention to return to the property within a reasonable time; and (d) the tenant had to show that his inward intent had some formal outward and visible sign, which was sufficiently substantial and permanent that, in all the circumstances, it was sufficiently adequate to rebut the presumption that he had ceased to be in possession.
Waltham Forest CBHA v Fanning
July 2001 Legal Action 33; 12 March 2001, QBD
 
Tenant had not discharged burden of proving that she genuinely intended to return
The defendant was an assured tenant. Her tenancy agreement did not permit subletting. On 28 June 1999, she signed an agreement with a letting agency which authorised the agency to form a legally binding tenancy agreement with any tenants. In July 1999, the agency, on behalf of the defendant, granted an assured shorthold tenancy to tenants. The claimant brought possession proceedings. HHJ Bradbury held that:
1)The defendant had, knowingly, authorised the letting agency to let the property.
2)In considering matters objectively, the defendant did not occupy the property as her principal residence under Housing Act 1988 s1. The defendant’s assured tenancy ended in July 1999 when she authorised the agency to allow tenants into occupation of the property. By leaving personal possessions and furniture in the property, the defendant had not maintained a sufficient presence to sustain any assured tenancy (Ujima Housing Association v Ansah (Ujima Housing Association v Ansah)).
3)The notice to quit was correctly served and had expired. The claimant was entitled to a possession order.
Rougier J dismissed the defendant’s appeal. Despite the subletting of assured premises, it was still open to the tenant to show a genuine intention to return and use those premises as her permanent residence. However, on the evidence the judge had not acted unreasonably in holding that the appellant had not discharged the burden of proving objectively that she genuinely intended to return.
County courts
 
Notting Hill Housing Trust v Etoria
April 1989 Legal Action 22; [1989] CLY 1912, Bloomsbury County Court
 
Where real possibility of life prisoner returning within eight years, residence satisfied
See Housing Law Casebook, 5th edition, C3.18.
Scottish courts
 
McLoughlin’s Curator Bonis v Motherwell DC
1994 SLT (Lands Tr) 31, Lands Tribunal
 
Where tenant ill and could not form intention to return, security lost
The tenant was taken seriously ill and was admitted to hospital for about five months. His illness was such that he could not immediately return to his own home nor, more importantly, form the intention to return to it (cf, Tickner v Hearn (Tickner v Hearn)). A ‘curator bonis’ was appointed to administer his affairs. The curator bonis paid the rent and maintained the tenant’s tenancy. In order to improve the assets available to the estate of the tenant, he exercised the right to buy.
The Lands Tribunal held that security of tenure had been lost. The tenant was no longer occupying the property as his ‘only or principal home’ (Housing (Scotland) Act 1987 s44(1)(b); in England and Wales, Housing Act 1985 s81).
Roxburgh DC v Collins
1991 SLT (Sh Ct) 49; 1991 1 SCLR 575; 1991 8 GWD 483, Sheriff Court
 
Son succeeded to mother’s tenancy despite living in lodgings elsewhere for six years
See Housing Law Casebook 4th edition, E14.22
Occupation as a residence; Rent Act 1977 s2(1)(a)
 
The Rent Acts provided that a tenant wishing to maintain a statutory tenancy must continue to occupy the premises in question as a residence (Rent Act 1977 s2(1)(a)). In many circumstances the courts treat tenants as occupying premises as a residence even though they are temporarily absent for surprisingly long periods of time, provided that they maintain an intention to return and a physical manifestation of that intention. If tenants cease to occupy as a residence, there can be no statutory tenancy and, if the contractual tenancy has been determined, the tenants lose security of tenure. Although the test of occupation ‘as a residence’ is different to that of occupation as an ‘only or principal home’ (see Occupation as only or principal home: Housing Act 1985 s81 and Housing Act 1988 s1(1)(b); Prohibition against subletting: Housing Act 1985 s93 and Housing Act 1988 s15A), the Rent Act cases concerning temporary absence may be relevant to cases involving secure and assured tenants who are temporarily absent and to those claiming the right to succeed.
A considerable body of case-law on this subject has built up over the years (see, eg, Luba, Madge Gallagher, McConnell and Madge-Wyld, Defending Possession Proceedings, 8th edn, LAG, chapter 12.) See too Housing Law Casebook (HLC) 3rd edition for the following, which have been omitted from subsequent editions:
DJ Crocker Securities (Portsmouth) Ltd v Johal [1989] 2 EGLR 102; (1989) 42 EG 103, CA (HLC 3rd edition, C10.6)
Duke v Porter (1987) 19 HLR 1; [1986] 2 EGLR 101; (1986) 280 EG 633, CA (HLC 3rd edition, C10.7)
Robert Thackray’s Estate Ltd v Kaye (1989) 21 HLR 160; [1989] 1 EGLR 127; [1989] 22 EG 95, CA (HLC 3rd edition, C10.13)
Supreme Court (formerly House of Lords)
 
Hampstead Way Investments Ltd v Lewis-Weare
[1985] 1 WLR 164; [1985] 1 All ER 564; (1985) 17 HLR 269; [1985] 1 EGLR 120; (1985) 274 EG 281, HL
 
Where tenant moved into another home and used flat merely to sleep on work nights, not a residence
The tenant rented a flat with two living rooms and two bedrooms. Later he and his wife bought a three-bedroomed house half a mile away. He and his family moved into the house. The tenant worked in a nightclub and, in order not to disturb his wife, slept in the flat five nights a week. He slept until early afternoon, when he went to the house and ate with his wife. He spent Sundays and Mondays, when he was not working, at the house. He had no meals in the flat and did not entertain any friends there.
The House of Lords held that the use made of the flat was very limited and insufficient for it to be a second home. Accordingly, it was not occupied as a residence. The flat was too far away to be treated as part of a combined unit. The tenant’s appeal against the possession order made in the Court of Appeal was dismissed.
Court of Appeal
 
Bevington v Crawford
(1974) 232 EG 191, CA
 
Flat remained residence despite tenant only staying in it ten days every year
The tenant rented a two-room flat in Harrow. Later he also took a three-room flat in the Grand Hotel in Cannes, France. On average he spent two to three months per year in England and the rest of the year in Cannes, where he had property interests and owned a golf course, which he ran. When he was in England he regarded the flat as his home, but spent much of the time visiting relations and friends in other parts of England. He actually stayed in the flat nine or ten days per year. His furniture and personal belongings remained in the flat in Harrow. At first instance, the landlord’s claim for possession was dismissed.
The landlord’s appeal was also dismissed. Lord Denning MR stated that the flat in Harrow had started off as the tenant’s home and that he had not given it up. The judge’s finding was justified on the evidence before him.
Blanway Investments Ltd v Lynch
(1993) 25 HLR 378, CA
 
Residence where two or three nights in flat and rest of week spent in home outside London
The defendant had a statutory tenancy of a flat in Islington. The original tenancy agreement had contained a covenant not to part with possession of the premises or any part of them and an obligation that the tenant should use them ‘as a private residence’ only. The tenant stayed at the flat for two or three nights a week, spending the rest of the time with a Mrs Mountney who lived in Essex. Two of Mrs Mountney’s daughters also stayed at the flat with their boyfriends. It was held that the tenant was ‘a two-home man’ who continued to enjoy Rent Act protection. However, at first instance a possession order was made on the ground that allowing Mrs Mountney’s daughters to set up residence in the flat amounted to a breach of the user covenant.
On appeal, setting aside the possession order, the Court of Appeal held that, where tenancies are granted to individuals, they are entitled to occupy with their spouses and family. In the present age there could be no objection to the fact that Mr Lynch was not married to Mrs Mountney or to him sharing with her daughters, who could be regarded as part of his wider family.
Brickfield Properties Ltd v Hughes
(1988) 20 HLR 108; [1988] 1 EGLR 106; [1988] 24 EG 95, CA
 
Tenant maintained intention to return to residence despite prolonged absence
Mr Hughes, aged 74, was a statutory tenant of a flat in London. His wife inherited a cottage in Lancashire in 1970 and from 1978 he and his wife remained there permanently. Between 1978 and 1987 he did not return to the flat in London at all and his wife only went there three times. However, their children lived in the flat and their furniture and books stayed there. The tenant said that he intended to return to the London flat if his wife predeceased him or if their health meant that they could not manage on their own in Lancashire. Their daughter gave evidence that she did not think that they would last another winter in the cottage.
The county court judge refused to make a possession order and the landlord’s appeal was dismissed by the Court of Appeal. The court stated that, where a tenant’s absence is prolonged, the burden of proof is on the tenant to establish an intention to return. That intention must be accompanied by some outward and visible sign. The continued occupation by a caretaker or relative or the presence of furniture may be sufficient. There must also be a ‘practical possibility’ or a ‘real possibility’ of fulfilment of the intention to return within a reasonable time. Although a statutory tenancy may be maintained even though the tenant has another home, courts should look at ‘two-home’ cases with particular care.
Brown v Brash
[1948] 2 KB 247; [1948] 1 All ER 922, CA
 
Prisoner’s residence not established where wife left house taking furniture with her
The tenant was sent to prison for two years for stealing six tons of tea. His partner and their two children continued living in the house, but then she left, taking the children and much of the furniture with her.
The Court of Appeal held that the tenant had ceased occupying the premises as a residence and that his statutory tenancy had come to an end. The question of whether a tenant’s absence is sufficiently long to infer a cessation of occupation is one of fact and degree. Where the absence is sufficiently long to allow that inference, the onus is on the tenant to rebut the presumption that possession has ceased. In order to do so, the tenant must establish a de facto intention to return and some formal outward and visible sign of that intention – an ‘animus possidendi’ and a ‘corpus possessionis’. If the physical sign of the intention (eg, the tenant’s caretaker or furniture) is removed, then the statutory tenancy ends.
Carphone Warehouse UK Ltd v Malekout
[2006] EWCA Civ 767; [2007] HLR 3; (2006) Times 28 June
 
Where prior claim for possession settled, landlord could not later assert not a residence
In 1985 Dr Malekout was granted a Rent Act protected tenancy of a flat. In 1997 or 1998 the landlord terminated the contractual tenancy, with the effect that Dr Malekout became a statutory tenant ‘if and so long as he occupied the premises as his residence’. In 1998 or 1999, the flat became uninhabitable and no one occupied it. In 2002, as a result of rent arrears, the landlord sought possession, claiming that Dr Malekout had ceased to occupy the premises as his residence. Dr Malekout defended, asserting that the statutory tenancy continued and counterclaimed for breach of repairing obligations. The claim was settled in 2003 by a Tomlin order which provided for the carrying out of repairs and that ‘both sets of proceedings are discontinued and all claims therein settled in full and final settlement’. The premises remained unoccupied and in 2004 Carphone sought possession, claiming rent arrears and that Dr Malekout was no longer a statutory tenant because he had ceased to occupy them as his residence. Dr Malekout resumed residence in the flat during the course of the trial. HHJ Walker rejected as untruthful Dr Malekout’s evidence that he had remained in residence until 1998 but found that the only ‘sensible inference’ from the terms of the Tomlin order was that Dr Malekout was a statutory tenant in 2003. Carphone was estopped from contending that Dr Malekout had lost his statutory tenancy before 2003. The claim for possession failed. Carphone appealed.
The Court of Appeal dismissed the appeal. Carphone could have challenged Dr Malekout’s status as statutory tenant in the 2002 proceedings. Indeed, it did so on the pleadings, but did not take the issue to trial. The agreement reached was predicated on the assumption that Dr Malekout had a statutory tenancy. The Tomlin order settled between the parties the issue of his intention to return to actual occupation once the premises were habitable.
Gofor Investments v Roberts
(1975) 29 P&CR 366, CA
 
Ten years not too long a time to fulfil requirement to return within a reasonable period
On the expiry of a fixed-term Rent Act protected tenancy the landlord took possession proceedings, claiming that the tenant had ceased to occupy the flat in question as a residence. The tenant, her husband and their six children had lived in the flat until 1970. Then she, her husband and four children went to live abroad. The two eldest sons lived in the flat, but by the time of the court hearing the flat was occupied by a licensee of the tenant. One son and the husband had stayed in the flat at various times. Some of the tenant’s furniture remained there. The tenant’s evidence that she originally intended to return to the flat when her children’s education was completed in 1978 or 1980, but that she now intended to return in 1976, was accepted. A county court judge dismissed the landlord’s claim for possession.
The Court of Appeal dismissed the landlord’s appeal. The judge had been entitled to find that the tenant intended to return within a reasonable period. Ten years was not too long a time to fulfil the requirement to return within a reasonable period. The presence of the tenant’s furniture together with the visits by members of her family were enough to constitute a ‘corpus possessionis’.
Hall v King
(1987) 19 HLR 440; (1988) 55 P&CR 307; [1987] 2 EGLR 121; (1987) 283 EG 1400, CA
 
Wife occupying premises which were not the matrimonial home not a statutory tenant
After the breakdown of his marriage, Mr King took a protected tenancy of premises in his own name in which it was proposed that his wife should live. He lived elsewhere with a Miss Driver. When the tenancy came to an end, the landlord sought to evict Mrs King. She claimed a statutory tenancy.
The Court of Appeal held that the landlord was entitled to a possession order. Mrs King was not entitled to rely on the protection of Matrimonial Homes Act 1983 s1(6) (now Family Law Act 1996 s30(4)) nor on the line of Rent Act cases starting with Brown v Draper [1944] KB 309, CA, in which a wife’s occupation of a matrimonial home has been deemed to be that of the husband, because the property had never been Mr and Mrs King’s matrimonial home.
Lloyd v Sadler
[1978] QB 721; [1978] 2 WLR 721; [1978] 2 All ER 529; (1978) 35 P&CR 78, CA
 
A remaining joint tenant acquired statutory protection at the end of the contractual tenancy even though her fellow joint tenant had ceased to occupy the premises as her residence
In 1975, Mr Lloyd granted Miss Sadler and Miss Lunt a joint tenancy of a flat for a year. The tenancy was a protected tenancy under, the then, Rent Act 1968. In 1976, Miss Lunt left the property with no intention of returning. Miss Sadler remained in occupation. Mr Lloyd instituted possession proceedings against Miss Sadler a year after the contractual tenancy had ended. Mr Lloyd contended that Miss Sadler, as a joint tenant, could not enjoy the protection of the Rent Act once the contractual tenancy had ceased unless her fellow joint tenant also occupied the property as her residence as, at common law, the ‘tenant’ meant both joint tenants. His claim for possession was dismissed and he appealed to the Court of Appeal.
The Court of Appeal dismissed the appeal. The common law rules applicable to joint tenancies should not be applied with the same strictness to the provisions of the Rent Act 1968. There is no requirement under the Rent Acts that all of the joint tenants must continue to occupy the premises as their residence; so long as one remains in occupation at the end of the contractual tenancy the tenancy will be protected and acquire statutory protection.
Moreland Properties (UK) Ltd v Dhokia
[2003] EWCA Civ 1639; [2004] L&TR 20
 
Where tenant no longer in residence and did not contest possession, subtenants could not defend possession claim successfully
A flat was let to Mr Dhokia in 1974. He remained in occupation until 1987 when he moved to another property. He took all the furniture and carpets. The flat was empty until November 1991, when Mr Dhokia purported to sublet the flat to his nephew, who lived there with other members of his family. He did not charge a profit rent, merely the amount that he himself paid to the landlord. When the landlord discovered the position it brought possession proceedings. Mr Dhokia did not resist the claim and a possession order was made against him. However, his nephew and the other members of the family contended that Mr Dhokia had been a protected tenant and that their subtenancy survived the order for possession as a result of Rent Act 1977 s137(2). The trial judge accepted this argument and dismissed the possession claim.
The landlord’s appeal was allowed by the Court of Appeal. After considering Trustees of Henry Smith’s Charity v Wilson [1983] QB 316, CA, Sir Martin Nourse stated that it would be extraordinary if someone who had abandoned the right to occupy premises for four or five years could either return to possession or give anyone else the right to possession. In any event, even if Mr Dhokia had not lost his statutory tenancy by abandoning the premises, as a statutory tenant, he could not grant an effective sub-tenancy. The property had therefore not been lawfully sublet under s137. An order for possession was made.
Prince v Robinson
(1999) 31 HLR 89, CA
 
Where tenant hardly stayed in premises and had few possessions there, not a residence
The plaintiff, Mr Prince, sought a declaration that he had a subsisting tenancy of a ground floor sitting room of premises which the defendants had recently bought, apparently with vacant possession, for £240,000. He had been granted a tenancy by the previous owner in the early 1970s. In 1989 he went to Devon, taking most of his personal belongings with him, but leaving a guitar and a few other items. Over the next two years he only stayed at the premises twice. The property was then squatted. On 6 February 1991 a serious fire occurred in which the squatter died and the interior of the house was badly damaged. Mr Prince tried to negotiate with the then landlord for payment of a capital sum in return for the surrender of his tenancy but no agreement was reached. However, the landlord proceeded to re-furbish the house. He did so in such a way that the tenant’s bedsit ceased to exist as identifiable separate accommodation and became part of an open-plan kitchen. Mr Prince relied on Land Registration Act 1925 s70(1)(k), which provides that a lease (which includes a tenancy) granted for a term of less than 21 years is an overriding interest.
His claim and subsequent appeal were both dismissed. He was not occupying as a residence within the meaning of Rent Act 1977 s2 because he had not stayed in the flat, even as an occasional visitor, since 1990, had no possessions there since the fire and only minimal possessions before then. The Court of Appeal did not find it necessary to express a definite view on the landlord’s contention that the tenancy had been frustrated but Robert Walker LJ doubted whether the doctrine of frustration could apply to a weekly or other periodic tenancy in circumstances where fire damage can be repaired in a matter of weeks or months.
Regalian Securities Ltd v Scheuer
(1982) 5 HLR 48; (1982) 47 P&CR 362; (1982) 263 EG 973, CA
 
Where tenant lived with family elsewhere, use of flat not as a residence
The tenant rented a flat with one bedroom, a living room, kitchen and bathroom. Subsequently he formed a relationship with a woman who lived three or four miles away. He moved in with her and married her. Later, she had a baby. The tenant kept furniture and clothes in his flat. He used the flat during the daytime and worked there as a script-writer. For two months the family lived in the flat when their other home was rented out on a ‘winter let’. A county court judge held that the tenant was not occupying the flat as a residence and made a possession order.
The tenant’s appeal was dismissed. The question was primarily one of fact for the judge. There was plenty of material on which to conclude that it would be artificial to describe the tenant’s user of the flat as a home when it was close to the home where he lived with his family.
Richards v Green
(1983) 11 HLR 1; (1983) 268 EG 443, CA
 
Difficult for landlord to reverse on appeal decision that tenant only temporarily absent
The tenant left his rented flat in June 1980 to look after his parents who were seriously ill. His mother died shortly after that date. His father died in January 1981. The tenant continued living in his parents’ house to carry out work to put it into good shape and to sell it. It was on the market in December 1982 when possession proceedings brought by the landlord of the flat were heard. The tenant gave evidence that he intended to return to the flat when the house was sold and that his furniture, books, records and some clothes had been left in the flat. The county court judge held that the flat was the tenant’s home and dismissed the claim for possession.
The landlord’s appeal was dismissed. It was a case where the tenant was temporarily absent. In cases such as this, where a county court judge has properly applied his or her mind, it is very difficult to persuade the Court of Appeal to reverse the decision.
Stephens v Kerr
[2006] EWCA Civ 187; [2006] HLR 21
 
Where tenant driven out by neighbours, she remained a statutory tenant
Ms Stephens issued proceedings for breach of various covenants in her tenancy agreement and sought a declaration that she was a statutory tenant. Her landlord defended on the basis that Ms Stephens did not occupy the premises as a residence because she lived predominantly with a friend after she had been driven out by neighbours (Rent Act 1977 s2(1)(a)). On a trial of a preliminary issue, a judge found that, on the evidence, Ms Stephens was a statutory tenant because the connection she had with the property was sufficiently great that it could be taken that she occupied it as her residence. The landlord appealed.
The Court of Appeal dismissed the appeal. The judge had approached the issue carefully and conscientiously. The findings were plainly open to the judge on the evidence available and the fact that a different judge might have reached a different conclusion was irrelevant. The only error was the judge’s granting of permission to appeal. The appeal was unsustainable.
Tickner v Hearn
[1960] 1 WLR 1406; [1961] 1 All ER 65, CA
 
Fact that tenant ‘mentally unsound’ did not prevent intention to return
The tenant spent five and a half years in a mental hospital suffering from schizophrenia. The Court of Appeal held that the fact that she was ‘mentally unsound’ did not mean that she was incapable of forming an intention to return to the premises.
Wigley v Leigh
[1950] 2 KB 305; [1950] 1 All ER 73, CA
 
Residence where prolonged absence due to war and tuberculosis
The tenant was absent from the home that she rented from 1940 to 1949. Initially she stayed with relatives because of the war. Later she was prevented from returning home because she had tuberculosis. It was held that she continued to occupy the property as a residence.
Company lets
 
Lettings to companies cannot be secure or assured tenancies because companies are not ‘individuals’ – see Housing Act 1985 s81 (the ‘tenant condition’) and Housing Act 1988 s1(1)(b). Although a letting to a company could be a protected tenancy under Rent Act 1977, no statutory tenancy can arise because a company cannot ‘occupy as a residence’ in order to satisfy the provisions of Rent Act 1977 s2(1)(a). See Hiller v United Dairies (London) Ltd [1934] 1 KB 57, CA, where the Court of Appeal held that there was a genuine letting to a company.
There are dicta which indicate that the courts may not accept ‘company let’ agreements where the company is a mere nominee of the tenant. In Firstcross Ltd v East West Export/Import Ltd (1980) 7 HLR 98; (1980) 255 EG 255; (1980) 41 P&CR 145, CA, Stephenson LJ stated that if the individual occupant had said that
… the company were merely his agent or nominee, and if the Judge had believed him, he could and should have given effect to the real agreement and dismissed the claim for possession. ((1980) 7 HLR at 112)
In Dando v Hitchcock [1954] 2 QB 317; [1954] 3 WLR 76; [1954] 2 All ER 335, CA, Denning LJ said:
I can well see that the court would not allow the landlord to avoid the Acts by taking someone as a nominal tenant, while knowing that the real tenant was to be somebody else. ([1954] 2 All ER at 336)
See also Cove v Flick [1954] 2 QB 326 at 328 and the approach of the Court of Appeal in Gisborne v Burton [1989] QB 390; [1988] 3 WLR 921, CA (involving the Agricultural Holdings Act 1948) and Evans v Engelson (Evans v Engelson) (involving Rent Act 1977 Sch 15 Case 9).
Court of Appeal
 
Eaton Square Properties Ltd v O’Higgins
[2001] L&TR 165; (2001) 33 HLR 771, CA
 
Tenancy entered into in name of company for tax advantages not a sham
Initially Mr O’Higgins had a tenancy of residential premises. However, in 1979 Eaton Square granted a 20-year tenancy of the property to Greylane Ltd. Mr O’Higgins, who had a 75 per cent interest in Greylane, continued to occupy the property and guaranteed the company’s obligations under the lease. On the expiry of the contractual term, he remained in occupation and claimed that he had a statutory tenancy under Rent Act 1977. The claimant sought possession contending that a company as tenant could not claim statutory protection. The judge at first instance found that Mr O’Higgins had replaced the previous statutory tenant and paid sums of money that were accepted by the claimant as rent. He dismissed the claim. He held that the common intention was that the defendant was the true tenant and so he was entitled to statutory protection. Jonathan Parker J allowed the company’s appeal. Mr O’Higgins appealed against that decision contending that the tenancy agreement with the company was a sham since it had been entered into solely for tax purposes and that he remained the true tenant.
The Court of Appeal dismissed his appeal. Although at the time the first lease was entered into with Mr O’Higgins personally he might have become a statutory tenant, that lease ceased when the agreement with Greylane was entered into. Sham transactions had been considered by the courts in Hilton v Plustitle Ltd (Hilton v Plustitle Ltd) and Antoniades v Villiers and Bridger (Antoniades v Villiers and Bridger) where the definition given by Diplock LJ in Snook v London and West Riding Investments Ltd [1967] 2 QB 786; [1967] 1 All ER 518, CA was approved, namely:
… acts done or documents executed by the parties to the ‘sham’ which are intended by them to give to third parties or to the court the appearance of creating between the parties legal rights and obligations different from the actual legal rights and obligations (if any) which the parties intend to create.
There had been no allegation of dishonesty and Jonathan Parker J had been correct to say that the findings of fact led to the conclusion that the company was the true tenant. The agreement had not failed to create the legal relations that on its face it did create. Mr O’Higgins had said in evidence that he had asked for the tenancy to be put into the name of the company to enable the company to take a tax advantage. Such a purpose did not mean that the transaction was a sham. The dicta in Snook showed that there had to be a common intention to show to third parties rights which were different from those intended. The purpose of the agreement was to show the Revenue that a tenancy had been entered into with the company.
Estavest Investments Ltd v Commercial Express Travel Ltd
(1989) 21 HLR 106; [1988] 2 EGLR 91; [1988] 49 EG 73, CA
 
Company let not sham where company paid the rent
Landlords let premises to a limited company with the intention of avoiding the provisions of the Rent Act. It was intended that the flat should be occupied by a director of the company and/or the daughter of the managing director of the company. Later, although the same person was to occupy the flat, a new tenancy was granted to a different company. Rent demands were sent to and paid by the companies.
The Court of Appeal held that there was no evidence of sham or artificiality, noting that the companies named as tenants in the tenancy agreements had performed all the obligations under the lease and that the individual director who lived in the premises performed none.
Hilton v Plustitle Ltd
[1989] 1 WLR 149; [1988] 3 All ER 1051; (1989) 21 HLR 72; [1989] 1 EGLR 119; (1989) 58 P&CR 25, CA
 
Where prospective occupant required to set up company to obtain tenancy, no sham
Ms Rose was looking for accommodation to rent. She saw and answered a newspaper advertisement. It was made clear to her by the landlord that the letting was to be to a company. She was advised by solicitors and bought an ‘off the shelf’ company, Plustitle Ltd, for £150. She became a shareholder and a director. The tenancy was granted in the name of Plustitle Ltd. Before the agreement was signed, the landlord obtained a reference from Ms Rose’s own bank. The agreement gave the company the right to nominate the occupiers of the property who were to pay no rent. The rent, which was to be paid by the company, was guaranteed by Ms Rose’s brother. Ms Rose claimed that the letting was a sham and that she was the real tenant.
The Court of Appeal upheld the circuit judge’s conclusion that the transaction was not a sham. Croom-Johnson LJ referred to the ‘accepted definition’ of sham in Snook v London and West Riding Investments Ltd [1967] 2 QB 786, CA, at 802 (see Eaton Square Properties Ltd v O’Higgins). Ms Rose unsuccessfully petitioned the House of Lords for leave to appeal.
Kaye v Massbetter Ltd and Kanter
(1992) 24 HLR 28; [1991] 2 EGLR 97; [1991] 39 EG 129, CA
 
Tenancy not a sham where parties intended company to be the tenant
Mr Kanter responded to an advertisement in an evening newspaper, and, after viewing the flat in question and discussing rent, was informed that the landlord would only let to a company. He did not have a company and, as he was an undischarged bankrupt, he could not become a director of an ‘off the shelf’ company. Instead, two friends bought a company for him and a tenancy agreement was drawn up naming the company as the tenant. In the county court, it was held that this was a genuine letting to a company and a possession order was made.
In the Court of Appeal, Lord Donaldson MR stated:
The test is: Was the letting genuine? If you look at the facts and find that there are indicia that the company was never intended to be the tenant, then you may conclude that it was not genuine. But the issue is simply one of genuineness. ((1992) 24 HLR at 32)
However, the Court of Appeal decided that this was essentially a question of fact for the trial judge and saw no reason to disturb his decision that the parties intended the company to be the tenant. Mr Kanter unsuccessfully petitioned the House of Lords for leave to appeal.
Navinter SA v Pastoll
(1990) 21 March, CA (CAT 90/308)
 
Where occupier neither director of shareholder of company, arguable tenancy was a sham
Landlords took summary possession proceedings under RSC Order 113 following the expiry of a renewed, fixed-term ‘company let’. The defendant had been the true occupier throughout, having bought an ‘off the shelf’ company to take the tenancy because the landlords were not willing to let to an individual. He argued that the arrangement was a sham, as the landlords had known from the outset that the flat was required for his personal use. At first instance Jowitt J granted possession, holding that Hilton v Plustitle Ltd (Hilton v Plustitle Ltd) could not be distinguished. However, the occupier’s application for a stay of possession pending appeal was granted.
In the Court of Appeal, Taylor LJ held that it was at least arguable that Hilton could be distinguished because (a) the occupier was neither a director nor shareholder of the company and (b) the tenant had personally signed the acceptance of the offer of renewal.
The landlord condition
 
There was no restriction on the type of landlord that could grant a Rent Act protected tenancy. Similarly, any landlord (except a local authority) can grant an assured tenancy. However, it is an essential requirement for the creation of a secure tenancy under Housing Act 1985 that the ‘landlord condition’ is fulfilled, ie, that the interest of the landlord belongs to one of the prescribed authorities listed in Housing Act 1985 s80(1). These include local authorities and housing associations (where the tenancy was granted before 15 January 1989).
Court of Appeal
 
Ali Bhai and Cabare v Black Roof CHA Ltd
[2001] 2 All ER 865; (2001) 33 HLR 607; (2000) Times 14 November, CA
 
Fully mutual co-op tenants became secure when co-op ceased to be fully mutual
The claimants were tenants of a flat under a contractual periodic tenancy granted by the association in 1985. They maintained that they had a secure tenancy and so could exercise the right to buy under Housing Act 1985 Part V. HHJ Brian Knight QC decided that the tenancy was not a secure tenancy because the association was a fully mutual registered housing co-operative when the tenancy was granted, although it ceased to be fully mutual in December 1991.
The claimants’ appeal was allowed. The tenancy was a secure ‘housing association tenancy’ within the meaning of Housing Act 1988 Sch 18 para 4(c). Although the expression was not there defined, it was to be inferred that the relevant definition was that found in Rent Act 1977 Part VI. This conclusion was reinforced by the fact that the expression was also to be found in Housing Act 1988 s35(5) (expressly referred to in Sch 18 para 4(a)) where it was expressed to have the same meaning as in Part VI of the 1977 Act. Therefore, while it was a housing association tenancy, the ‘landlord condition’ in relation to the tenancy was the ‘landlord condition’ as it was immediately before the repeals took effect, so the relevant list of prescribed landlords in Housing Act 1985 s80 was the unamended list, which included a non-mutual association. The effect was that, when the defendant became a non-mutual association, the ‘landlord condition’ was thereby satisfied in relation to it, and the tenancy thereupon became a secure tenancy.
Banjo v Brent LBC
[2005] EWCA Civ 292; [2005] 1 WLR 2520; [2005] HLR 32; (2005) Times 29 March
 
Tenancy at will cannot be secure even when landlord and tenant condition satisfied
In the early 1970s Mr Banjo was a subtenant of a housing association. Brent LBC then became the freeholder. In 1974 Mr Banjo acquired a long leasehold interest from his immediate landlord and became a tenant of Brent for the remaining term of the lease. It was a ‘long tenancy’, which, by virtue of Housing Act 1985 Sch 1 para 1, could not be a secure tenancy. The contractual term of his lease expired in September 1980. He remained in occupation after that date, but paid no rent. In February 2002 Brent gave notice of its intention to take proceedings to recover possession. Mr Banjo sought a declaration that he was entitled to exercise the right to buy. Brent brought a Part 20 claim seeking possession. A judge dismissed his claim and held that his claim to exercise the right to buy was barred by limitation and, in so far as relevant, by equitable principles of laches. The judge also dismissed Brent’s claim for possession, holding that, on the determination of the long lease, Mr Banjo had remained in occupation as a tenant at will and on that basis the tenancy was a secure tenancy. Brent appealed.
The Court of Appeal allowed the appeal. No periodic tenancy arose on the determination of the long lease in June 1982, either under Housing Act 1985 s86 (because the fixed-term tenancy which Mr Banjo had previously held was not itself a secure tenancy) or by implication from the demand, payment or acceptance of rent. Security of tenure is dependent on there being a tenancy that the landlord cannot bring to an end without obtaining an order for possession. The tenancy at will was determined in February 2002. Thereafter, Mr Banjo remained in possession as a trespasser. He was neither a tenant nor a licensee. It is doubtful whether parliament intended that a tenancy at will could be a secure tenancy, even where the conditions in ss80 and 81 are satisfied. Accordingly the judge was wrong to refuse to grant possession.
The House of Lords subsequently refused a petition for leave to appeal ([2005] 1 WLR 2818).
R v Plymouth CC and Cornwall CC ex p Freeman
(1987) 19 HLR 328, CA
 
All joint landlords need to satisfy landlord condition
Mr Freeman was the tenant of a lodge in parkland. In 1970 the parkland was bought jointly by Plymouth City Council and Cornwall County Council. After the Housing Act 1980 came into force, Mr Freeman claimed the right to buy. The councils claimed that he was not entitled to do this because the property was owned jointly and, at that time, before the implementation of the Housing and Building Control Act 1984, only the city council satisfied the landlord condition under Housing Act 1980 s28(2) (now Housing Act 1985 s80).
The Court of Appeal held that the landlord condition was not satisfied if only one of the joint landlords was among the list of bodies specified in Housing Act 1980 s18(4) (now Housing Act 1985 s80(1)).
Scottish courts
 
Knowles Housing Association v Millar
2001 SLT 1326, Court of Session
 
Secure status lost on change of landlord where new landlord did not satisfy landlord condition
See Housing Law Casebook, 5th edition, C6.4.
Assured tenancy transitional provisions
 
The intention behind the Housing Act 1988 was to create completely new types of tenancy (ie, assured and assured shorthold tenancies). However, some protection was provided for existing Rent Act and housing association tenants. Section 34(1) states that:
(1) A tenancy which is entered into on or after the commencement of this Act cannot be a protected tenancy, unless –
(a) it is entered into in pursuance of a contract made before the commencement of this Act; or
(b) it is granted to a person (alone or jointly with others) who, immediately before the tenancy was granted, was a protected or statutory tenant and is so granted by the person who at that time was the landlord (or one of the joint landlords) under the protected or statutory tenancy; or
(c) it is granted to a person (alone or jointly with others) in the following circumstances –
(i) prior to the grant of the tenancy, an order for possession of a dwelling-house was made against him (alone or jointly with others) on the court being satisfied as mentioned in section 98(1)(a) of, or Case 1 in Schedule 16 to, the Rent Act 1977 or Case 1 in Schedule 4 to the Rent (Agriculture) Act 1976 (suitable alternative accommodation available); and
(ii) the tenancy is of the premises which constitute the suitable alternative accommodation as to which the court was so satisfied; and
(iii) in the proceedings for possession the court considered that, in the circumstances, the grant of an assured tenancy would not afford the required security and, accordingly, directed that the tenancy would be a protected tenancy; or
(d) it is a tenancy under which the interest of the landlord was at the time the tenancy was granted held by a new town corporation, within the meaning of section 80 of the Housing Act 1985, and, before the date which has effect by virtue of paragraph (a) or paragraph (b) of subsection (4) of section 38 below, ceased to be so held by virtue of a disposal by the Commission for the New Towns made pursuant to a direction under section 37 of the New Towns Act 1981.
Similarly, s35(4) provides that tenancies granted by housing associations on or after 15 January 1989 ‘cannot’ be secure ‘unless’ one of the exceptions contained in the subsection is met. The most common exception is that which applies to a letting by the same landlord to a person who was immediately beforehand a secure tenant: s35(4)(d).
Court of Appeal
 
Laimond Properties Ltd v Al-Shakarchi
(1998) 30 HLR 1099; (1998) Times 23 February; [1998] EGCS 21, CA
 
Where possession ordered against protected tenant on basis of suitable alternative accommodation, the new tenancy did not have to be protected; s34(1)(b) mandatoryLegal Action 11; [1994] CLY 2723, Staines County Court
The plaintiff company was the freeholder of a house in Oakley Street, London SW3. The defendant was the Rent Act protected tenant of a first floor flat. The plaintiff also owned a house in Cranley Place, London SW7 which it held under a lease expiring in 2013. In February 1997 the plaintiff sought and obtained an order for possession of the defendant’s flat in the Oakley Street house on the ground that suitable alternative accommodation would be available. This was the first floor flat of the Cranley Place house, which the plaintiff proposed to let to the defendant on an assured tenancy within the meaning of the Housing Act 1988. It was accepted that this was suitable alternative accommodation. At first instance, HHJ Hallgarten QC, hearing the case before the Court of Appeal decision in Wellcome Trust v Hamad (Wellcome Trust v Hamad), held that, although Rent Act 1977 s137 might afford sufficient protection on the expiry of the landlord’s lease, there was sufficient doubt that the court could not be satisfied that a protected tenancy would be suitable. However, it was possible for the plaintiff to grant an assured tenancy and, in view of Housing Act 1988 s18, that tenancy would be binding on the freeholders when the lease ended (see [1997] CLY 3310, Central London County Court). The defendant appealed, contending that, because her tenancy in the Oakley Street house was a protected tenancy within the meaning of the Rent Act 1977, no valid assured tenancy could be granted to her on its termination because of Housing Act 1988 s34(1)(b).
Her appeal was dismissed. The Court of Appeal held that s34(1)(a), (b) and (c) deal with three separate situations. Section 34(1)(b) has no application in a case where the landlords have obtained an order for possession since the court ‘will have considered whether the new tenancy affords ‘the required security’ and whether the court should direct that the new tenancy be a protected tenancy’. Roch LJ also (1) accepted submissions that s34(1)(b) was mandatory, not permissive, and (2), approving Goringe v Twinsectra Ltd (Goringe v Twinsectra Ltd), held that s34(1)(b) protection applies both to new tenancies of the same premises and to tenancies of other premises granted by the same landlords.
Note too, in Scotland, Queens Cross Housing Association Ltd v McAllister 2003 SLT 971, a case involving a similar provision in Housing (Scotland) Act 1987 s43(3)(c) – no requirement that the earlier tenancy should be of the same premises.
Rajah v Arogol Co Ltd
[2001] EWCA Civ 454; [2002] HLR 21; (2001) Times 13 April
 
Section 34(1)(b) not limited to tenancies of the same or substantially the same premisesTimes 23 February; [1998] EGCS 21, CA
From 1982 the defendant was the Rent Act protected tenant of the back room on the ground floor of a property. In 1990 he moved to the entire floor. In possession proceedings a circuit judge found that the move amounted to a surrender of the protected tenancy.
The Court of Appeal allowed the tenant’s appeal and set aside the possession order made. Following Laimond Properties Ltd v Al-Shakarchi (Laimond Properties Ltd v Al-Shakarchi), it held that the protection given by Housing Act 1988 s34(1)(b) was not limited to the same or substantially the same premises. It is the identity of the landlord and tenant that matters, not the identity of the premises. Furthermore, the fact that the landlord had changed between 1982 and 1990 did not affect the position. Section 34(1)(b) clearly refers to a grant at a later date by the person who was the landlord at the time of the later grant. The move did not constitute a surrender. The defendant retained the protection of the Rent Act.
Secretarial Nominee Co Ltd v Thomas
[2005] EWCA Civ 1008; [2006] HLR 5; [2006] L&TR 6; (2005) Times 20 September
 
Section 34 does not apply to tenant who was not protected prior to Housing Act 1988
In 1988, before the Housing Act 1988 came into force, Secretarial let a flat for a term of one year on a Rent Act protected tenancy to three joint tenants including a Mr Marshall. In 1989 the flat was again let on a one-year tenancy to Mr Marshall and two others. The tenancy was described as an assured shorthold tenancy. In 1990 it was let to Mr Marshall, a Ms Sucdev and one other. Mr Marshall then moved out but in 1991 the flat was let to Ms Sucdev, Mr Thomas (the defendant) and one other. There was then a series of one-year tenancies which included Mr Thomas as one of the joint tenants. It followed that by this time none of the joint tenants had been a party to a pre-Housing Act tenancy. The landlord served a Housing Act 1988 s21 notice and sought possession. District Judge Langley held that, in view of Housing Act 1988 s34(1)(b), Mr Thomas enjoyed Rent Act protection.
The Court of Appeal allowed the landlord’s appeal. It may be that new (ie, after 15 January 1989) joint tenants of an existing Rent Act tenant enjoy Rent Act protection. However, section 34 ‘begins with the concept of a person who, after the commencement of the 1988 Act, is both a Rent Act tenant and has entered into a new tenancy. Such a person, moreover, has to have been a Rent Act tenant already before the new tenancy’. The words ‘and prior to the commencement of this Act’ in section 34 ‘have to be understood (in addition to the express requirement of ‘immediately before the tenancy was granted’) as inherently qualifying the words ‘was a protected or statutory tenant’. It is for the sake of such a tenant, and no other that the transitional protection of a protected tenancy is extended.’ The statutory language shows that the protection is for a particular person. The Court of Appeal concluded that Mr Thomas was not a Rent Act tenant within the protection of section34(1)(b).
Truro Diocesan Board of Finance Ltd v Foley
[2008] EWCA Civ 1162; 22 October 2008; [2009] 1 All ER 814; [2009] HLR 21; [2009] L&TR 18; [2009] 1 P&CR 13 (2008) Times 1 December
 
There is nothing to prevent a contractual or statutory tenant from surrendering a tenancy and statutory protection if the tenant perceives it offers some advantage
In 1987, the trustees of a church school granted Mr Foley a tenancy of a house. When the Diocesan Board acquired title, it considered that he occupied the property under a protected shorthold tenancy within the meaning of Housing Act 1980 s52. In May 2000, the Diocesan Board brought possession proceedings relying on Rent Act 1977 Sch 15, Case 19. Mr Foley defended. He maintained that he was a weekly tenant who enjoyed the full protection of the Rent Act. In 2001, the parties agreed a consent order which included a declaration that Mr Foley was a tenant under a protected shorthold tenancy and that there had been no grant of a further tenancy. A schedule to the order provided that the tenancy would be determined by Mr Foley delivering up possession on or before 26 September 2001, when the Diocesan Board would arrange for his dinner, bed and breakfast in a hotel. Mr Foley was to vacate the property for a minimum period of 24 hours and deliver up all keys. On 27 September 2001, the Diocesan Board would grant Mr Foley an assured shorthold tenancy of the same property for a term of five years. Although Mr Foley handed over the keys on September 26, his furniture and belongings remained in the property throughout the 24-hour period. No formal grant of a new tenancy was ever made. In 2006, the Diocesan Board served a Housing Act 1988 s21 notice and began possession proceedings. On the trial of a preliminary issue, HHJ Neligan held that Mr Foley could not bring himself within Housing Act 1988 s34(1)(b) which provides that a tenancy entered into on or after the commencement of Housing Act 1988 cannot be a protected tenancy, ‘unless … (b) it is granted to a person … who, immediately before the tenancy was granted, was a protected or statutory tenant’. Section 45(1) provides that ‘“tenancy” includes … an agreement for a tenancy’. Mr Foley appealed.
The Court of Appeal dismissed the appeal. The agreement was enforceable. Although it provided for the Diocesan Board to grant an assured shorthold tenancy to Mr Foley on 27 September 2001, no such grant was in fact made. Mr Foley went back into possession and both parties treated their relationship as being governed by the agreement. Dibbs v Campbell (1988) 20 HLR 374 and Bolnore Properties Ltd v Cobb (Bolnore Properties Ltd v Cobb) make it clear that there is nothing to prevent a contractual or statutory tenant from surrendering a tenancy, and with it statutory protection, if the tenant perceives it offers some advantage. One way of achieving that object is for the tenant to surrender possession for a short period of time before the new tenancy is granted, although it is unnecessary for there to be an interruption of physical occupation for such an arrangement to be effective.
Moore-Bick LJ considered whether or not there was a minimum interval between two tenancies which would suffice to prevent the tenant from taking advantage of section 34(1)(b); however, he found it difficult to draw any rational distinction between intervals of different lengths without introducing an unacceptable degree of uncertainty into the statutory provisions. In his view, the expression ‘immediately before the tenancy was granted’ in section 34(1)(b) ‘should be given its ordinary meaning as being restricted to those cases in which the new tenancy takes effect immediately on the expiry of the old’.
High Court
 
Crown Estate Commissioners v Governors of the Peabody Trust
[2011] EWHC 1467 (Ch); 10 June 2011
 
Where the Crown Estates Commissioners transferred property to a housing association, the occupants became assured tenants
In February 2011, the Crown Estate Commissioners sold the reversionary interest in a number of residential properties to Peabody, a housing association within the meaning of Housing Associations Act 1985 s1 and a not for profit private registered provider of social housing within the meaning of the Housing and Regeneration Act 2008. The occupants were tenants who had been subject to and entitled to protection under the Rent Act 1977. All agreed that those Rent Act tenancies came to an end on transfer of ownership. However, a dispute arose regarding whether they became secure tenants under Housing Act 1985 Part 4 and also housing association tenants within the meaning of Rent Act 1977 s86 or assured tenants under the Housing Act (HA) 1988.
After a lengthy tour d’horizon of the relevant legislation from 1977 onwards, Charles Hollander QC, sitting as a deputy judge, found that the words of Housing Act 1988 s38(5)(d) were clear. On the transfer of interest the occupants became assured tenants.
Upper Tribunal (Lands Chamber) (formerly Lands Tribunal)
Swanbrae Ltd v Ryder
[2015] UKUT 0069 (LC); 24 February 2015
A tribunal had been wrong to determine that Ms Ryder was a Rent Act tenant; there was no evidence before the tribunal that her current landlord had been her landlord prior to 15 January 1989
Ms Ryder occupied residential premises. In 1994, possession proceedings were settled, on the basis that she would be granted an assured tenancy. Between 1994 and 2013 notices of increase of rent were given underHousing Act 1988 s14. They were referred on five occasions to rent assessment committees and four times the rent was increased to the market rate. In 2013, the landlord sought a further increase but the First-tier Tribunal (Property Chamber) struck out the application on the grounds that the tenancy was still a regulated tenancy under the Rent Act 1977 and not an assured tenancy. It held that immediately before the 1994 tenancy agreement, Ms Ryder occupied the premises as a Rent Act tenant.
Martin Rodger QC, deputy president of the Upper Tribunal, allowed an appeal. The tribunal had been right to question whether Ms Ryder was a Rent Act tenant; every court or tribunal is entitled to determine whether it has jurisdiction to hear a dispute irrespective of whether the issue is raised by the parties. However, it was for Ms Ryder to prove that there was a relationship of landlord and tenant between the parties before 15 January 1989. There was no evidence before the tribunal to this effect; Ms Ryder did not assert that this was the case and Swanbrae had denied it. The tenancy was therefore an assured tenancy and the tribunal had jurisdiction to determine a rent.
County courts
 
Goringe v Twinsectra Ltd
June 1994 Legal Action 11; [1994] CLY 2723, Staines County Court
 
Section 34(1)(b) not limited to tenancies of the same or substantially the same premises
The plaintiff was a statutory tenant by succession within the meaning of the Rent Act 1977. In April 1989 she agreed with her landlords to move to other accommodation owned by them. They then claimed that, since the new tenancy commenced after 15 January 1989, she was an assured tenant and served notice to increase her rent. The tenant sought a declaration that, in view of the provisions of Housing Act 1988 s34(1)(b), she remained a statutory tenant with Rent Act protection. The landlords claimed that s34(1)(b) did not apply where the accommodation was not ‘the same or substantially the same premises’.
It was held that there was ambiguity in the wording of s34(1)(b) and that, therefore, in the light of Pepper v Hart [1993] AC 593, HL, the court was entitled to look at Hansard as an aid to construction. In parliament this issue was debated in full, and it was made clear that it was not necessary for the premises to be the same or substantially the same. The tenant was accordingly granted a declaration that she continued to enjoy Rent Act protection.
Kotecha v Rimington
March 1991 Legal Action 15, Leicester County Court
 
New tenancy granted by new landlord to protected tenant remained protected
See Housing Law Casebook, 5th edition, C7.7.
CHAPTER C
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