Church Commissioners for England v Meya

Under section 5(3)(d) of the Housing Act 1988, the periods of a statutory periodic tenancy are those for which rent was last payable under the fixed-term tenancy. This requires identification of the final rent instalment due and the period it covered. Where rent is expressed annually but payable by quarterly instalments, the statutory periodic tenancy is quarterly. The common-law rules on holding over do not control construction of the statutory scheme. Earlier observations unnecessary to an earlier decision are obiter and are not binding.

The Church Commissioners let a flat to Gisele Meya under an assured shorthold tenancy for one year less a day, at an annual rent payable by equal quarterly payments in advance. Meya remained in occupation after expiry, creating a statutory periodic tenancy under section 5 of the Housing Act 1988. The landlord served a possession notice under section 21(4)(a) and brought proceedings. Deputy District Judge Lawrence dismissed the claim, considering the Court of Appeal bound by Laine v Cadwallader. The appeal concerned whether the statutory periodic tenancy was annual or quarterly.

1. Appeal allowed. The respondent was ordered to give up possession of the premises in 28 days. Lady Justice Smith and Mr Justice Cresswell agreed with Lord Justice Ward.
2. In Laine v Cadwallader (2000) 33 H.L.R. 397, the ratio was that the tenancy had terminated by implied agreement four weeks after the keys were returned. The observations on section 5(3)(d) were unnecessary to that decision and were therefore obiter. They were not binding on this court, although they commanded respect.
3. Adler v Blackman [1953] 1 Q.B. 146 showed the common-law approach to holding over. Where rent was expressed annually, an annual tenancy could arise despite payment by instalments. The statutory regime, however, had to be construed according to its own words. There was no presumption that it reproduced the common law.
4. Section 5(3)(d) required meaning to be given to the word last. The court had first to identify the last payment of rent which became due under the fixed-term tenancy and then the period covered by that payment. The annual rent and the quarterly instalments could each be described as payable, so the word payable alone did not resolve the issue.
5. Here the rent was annual but expressly payable quarterly in advance. The final instalment was £4,420, payable for the September quarter. The statutory periodic tenancy was therefore quarterly. The possession notice was consequently effective and the proceedings were not premature.

1. Court of Appeal (Civil Division): In [2006] EWCA Civ 821 , the appeal was allowed and possession was ordered within 28 days.
2. Central London County Court: Deputy District Judge Lawrence dismissed the landlord’s possession claim, holding that the relevant notice was premature because the statutory periodic tenancy was annual. Permission was granted for a direct appeal.