Short-life properties and housing associations

In 1987 Islington granted a licence to Patchwork Community Housing Association to use one of its short-life houses for temporary accommodation.

The licence provided for either party to give notice and for Patchwork to return the house vacant when the licence ended.

Patchwork allowed a succession of individuals to occupy the house, including, most recently, Mr O’Shea. He was Patchwork’s secure tenant.

Islington gave Patchwork notice to end the licence in July 2003. Mr O’Shea did not leave so the council claimed possession. O’Shea claimed that Patchwork had simply acted as the council’s agent in granting the tenancy and that he was therefore the council’s tenant. A county court judge rejected that claim and granted a possession order. O’Shea appealed.

On appeal, he argued that Islington was bound by his tenancy because it knew when it granted the licence to Patchwork that individuals would be let into occupation. It had therefore agreed that any tenancy Patchwork created would have priority over its own interest.

The Court of Appeal dismissed the appeal. It decided that the terms of the licence showed that Islington had never agreed to be bound by anything other than the licence itself. Although O’Shea’s tenancy had bound Patchwork it did not create an “interest in land” binding on Islington. The possession order was confirmed.