Jurisdiction(s):
United Kingdom

Phillips v Garraway (CA): Services in lieu are not ‘rent’ under Housing Act 1988 unless given an agreed monetary value; no assured tenancy; notice to quit valid (England and Wales)

Published on: 23 February 2026

Published by a LexisNexis Property Disputes expert

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Article summary

Phillips and another v Garraway [2026] EWCA Civ 55 What are the practical implications of this case?

This ruling makes plain that would-be tenants who intend to render services in place of rent must settle an agreed value for those services with the proposed landlord if they want the tenancy to attract security of tenure under the HA 1988. Where no figure is put on the services, it is probable that the tenancy can be ended by a notice to quit. Beyond that, the practical consequences of the judgment are likely to be limited. The court recognised that ‘rent’ carries different meanings at common law and across other statutory schemes, so the Court of Appeal’s explanation of ‘rent’ is confined to the particular statutory framework of the HA 1988. Although the tenant relied on the potential for abuse by unscrupulous landlords, the court found no exploitation here, nor any material indicating that such issues routinely arise in the county court, and the lack of earlier authority on the point under the HA 1988 suggests that this is probably uncommon. Further, in the event that landlords try to...

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