Bruton v London & Quadrant Housing Trust [1999] UKHL 26

Facts

  • The London & Quadrant Housing Trust, a voluntary housing trust, obtained a license from a local authority to use properties, scheduled for redevelopment, as temporary dwellings for homeless people.
  • Mr. Bruton entered into a written agreement with the Trust for occupation of such a dwelling, described as a “weekly license.”
  • The agreement included a clause requiring Mr. Bruton to vacate the property upon reasonable notice.
  • Mr. Bruton contended that the Trust had violated implied terms to maintain the premises in good repair.
  • The main issue arose over whether this agreement granted Mr. Bruton a tenancy or a license, affecting his legal rights and remedies.

Issues

  1. Whether the agreement between Mr. Bruton and the London & Quadrant Housing Trust created a tenancy or merely a license.
  2. Whether the Trust’s own limited interest (as a licensee of the local authority) prevented it from granting a tenancy.
  3. Whether the designation of the agreement as a “license” or the intention of the parties was determinative of its legal effect.

Decision

  • The House of Lords held that Mr. Bruton was a tenant, not merely a licensee, because he was granted exclusive possession of the property.
  • The court determined that the label “license” and the Trust’s lack of title did not preclude the creation of a tenancy.
  • The decisive factor was the grant of exclusive possession for a term at rent, not the Trust’s legal interest or the agreement’s wording.
  • The court found the existence of a “Bruton tenancy,” arising solely from the relationship between occupier and grantor, enforceable against the grantor alone.

Legal Principles

  • Exclusive possession is the essence of a tenancy; whether the agreement is called a license or tenancy is not conclusive.
  • The ability to grant exclusive possession, not the extent of the grantor’s interest, determines whether a tenancy exists.
  • A “Bruton tenancy” can arise even where the grantor does not hold a leasehold or freehold estate.
  • Statutory protections for tenants may apply irrespective of the grantor’s title if exclusive possession is granted.

Conclusion

Bruton v London & Quadrant Housing Trust [1999] UKHL 26 clarified that exclusive possession is the key test for a tenancy, not the labels attached by the parties or the nature of the grantor’s title. The decision established that a tenancy can exist even when the landlord does not have a proprietary estate, protecting the rights of occupiers in precarious or temporary accommodation.

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