## Facts

- Elitestone Ltd was the freeholder of land on which Mr. Morris occupied a bungalow.
- Morris paid an annual fee to Elitestone Ltd for his occupation.
- Elitestone sought to remove Morris from the land.
- Morris claimed protected tenancy under the Rent Act 1977, which would prevent his removal except under specific conditions.
- The dispute hinged on whether the bungalow was a chattel (movable and not part of the land) or a fixture (attached to the land and part of the real property).
- The bungalow rested on concrete blocks attached to the land but was not itself fixed directly to these blocks.
- The court had to determine whether the construction and purpose of the bungalow made it part of the land.

## Issues

1. Whether the bungalow was a chattel or a fixture for property law purposes.
2. Whether Morris was entitled to tenancy protection under the Rent Act 1977 as an occupant of a dwelling considered part of the land.
3. What legal test should be applied to determine the status of the bungalow.

## Decision

- The House of Lords held the bungalow was a fixture and part of the real property.
- The court applied a two-stage test: (1) assessing the degree of annexation and (2) considering the purpose for which the bungalow was placed on the land.
- It was found that the bungalow, though not directly fixed to the concrete blocks, could only be removed by demolition, demonstrating a high degree of annexation.
- The court determined the bungalow was intended to serve as a permanent residence, for the use and enjoyment of the land rather than as a movable object.
- As a result, Morris was entitled to the protections granted by the Rent Act 1977.

## Legal Principles

- The two-stage test for determining chattel versus fixture involves examining both the degree of physical annexation and the object's intended purpose.
- Structures that can only be enjoyed in situ and cannot be removed intact are strongly inferred to be fixtures.
- The intention behind placing the object on the land must be assessed objectively, focusing on the purpose served by the thing itself, not merely the purpose of the person placing it.
- Legal status under property law depends on the degree of attachment and permanence of the object with the land.

## Conclusion

The House of Lords established that an object, such as a bungalow, which is intended to serve as a permanent part of the land and cannot be removed without demolition, qualifies as a fixture. This resulted in Morris receiving tenancy protection under the Rent Act 1977, and the case clarified the objective test for distinguishing fixtures from chattels in property law.

Elitestone Ltd v Morris [1997] 1 WLR 687 (HL)