Tenancy vs Licence vs Service Occupancy
Street v Mountford [1985] AC 809 (HL): exclusive possession + defined premises + term + rent = tenancy, regardless of what the document calls the arrangement — cannot create a licence by labelling alone. A service occupancy is a distinct category: arises where occupation of the specific accommodation is genuinely necessary for the performance of the employee's duties, or the employer genuinely requires residence for the better performance of those duties. A service occupant has no security of tenure — their right to occupy ends when employment ends. The test is substance not label: a caretaker on 24-hour call-out (requiring on-site residence) is a classic service occupant; an office worker given cheap nearby housing is not. Courts look at the reality — a sham service occupancy label will be disregarded and the arrangement treated as a tenancy with full HA 1988 security.
Ending a Service Occupancy and Agricultural Tied Housing
Notice: a genuine service occupancy can be ended by giving reasonable notice to quit (typically 4 weeks — no statutory minimum). Court order: even for service occupants, physical eviction without a court order risks a PEA 1977 claim — always obtain a county court possession order after notice is served. Disputed status: if the ex-employee claims to be an AST tenant, a court hearing is required to determine the nature of the arrangement. Agricultural tied cottages: the Rent (Agriculture) Act 1976 gives qualifying agricultural workers in tied accommodation security of tenure equivalent to a protected tenancy; pre-15 January 1989 agreements are protected; post-1989 agricultural workers may have Assured Agricultural Occupancies (AAO) under HA 1988 — security of tenure; s.21 notices unavailable. Local housing authorities have a duty to rehouse qualifying agricultural workers required to vacate. Always take specialist legal advice before creating any tied accommodation arrangement and before serving notice on any occupier.