Does providing a service constitute a form of payment for “rent” under the Housing Act 1988?
March 24, 2026
Does providing a service constitute a form of payment for “rent” under the Housing Act 1988?March 24, 2026 The key legal question in this case was whether non-monetary services provided by a tenant constituted “rent” for the purposes of the Housing Act 1988 (‘the 1988 Act’). This was important because, if it was found that they did, the tenancy (and therefore the tenant) benefitted from protection under the 1988 Act. The decision will be of interest to owners, landlords and occupiers of residential property in England and Wales. The tenancyIn January 2023 Mr and Mrs Phillips granted Ms Garraway a short-term six month rolling tenancy of a property in Kent. Rather than paying conventional rent, the Tenancy required Ms Garraway to provide a minimum of two days’ work per week on Mr and Mrs Phillips’ estate. Due to limited work being performed, a notice to quit was served on Ms Garraway and possession proceedings were brought when she failed to vacate. Were services deemed “rent”?Ms Garraway argued that the services rendered had a monetary value and thus qualified as rent under the 1988 Act. This meant that an assured shorthold tenancy had been created, one which could not be terminated by a mere notice to quit. The courts at every level disagreed. The Court of Appeal concluded that the word ‘rent’ in the 1988 Act should be given the same meaning as it had been given by judicial decision for the purpose of the Rent Acts. “Rent” was therefore limited to the payment of money or the provision of goods or services to which the parties have attributed a value. The fact that the court would be able to determine such a value for itself if necessary was irrelevant. The court determined that the parties had not attributed a monetary value to the services in this case, and as such the Tenancy fell within one of the statutory exclusion in the 1988 Act and did not amount to an assured tenancy agreement. Key takeaways:
Latest InsightsLatest News
Latest Events
legal updates June 26, 2026 EU Tax Omnibus Proposal: Simplification of EU Direct Tax Framework legal updates June 25, 2026 UK: FCA consults on changes to its penalty and decision-making policies legal updates June 25, 2026 China: Counter-sanctions and EU due diligence obligations legal updates June 24, 2026 Commercially connected - June 2026 firm news June 26, 2026 Our Paris team advises Isalt and Raise on financing for Broceliand acquisit... client news June 17, 2026 Advising Trane Technologies on the acquisition of Transport-Kälte-Vertrieb ... firm news June 15, 2026 Eversheds Sutherland continues European expansion with further strategic pa... client news June 09, 2026 Eversheds Sutherland powers 12 key deals for Gresham House Energy Storage F... virtual Energy Transition Series - Project Financing BESS: Comparing the UK market ... July 08, 2026 10:00 ET | 15:00 BST | 16:00 CET virtual UAE - Employment law in the Dubai International Financial Centre September 10, 2026 9.30am - 1.30pm (GMT) Virtual in-person Managing AI use in the workplace: what every UK HR team needs to know September 10, 2026 9.30am - 1.00pm (BST) London, United Kingdom in-person Basic foundations of US employment law September 17, 2026 9.30am - 4.30pm (GMT) London, United Kingdom |