In two appeals heard together, the House of Lords held that exclusive possession of merely a bedroom is not sufficient to create a tenancy, and also that a tenancy cannot be disguised as a licence by a clause in the agreement which contradicts the character of the agreement.
AG Securities v Vaughan – four separate bedrooms in a house were occupied by four individuals, each with their own independent agreements. Each occupier had exclusive possession of one bedroom, but shared possession of the other parts of the house. The Court of Appeal held that the occupiers were tenants, with a joint tenancy.
Antonaides v Villiers – a couple occupied a one-bedroomed flat, each having a licence which expressly reserved to the owner the right to share and permit other persons to share the flat. This reservation could not reasonably be acted upon, but meant that the couple appeared not to have exclusive possession of the dwelling. The Court of Appeal held that the occupiers had a licence rather than a tenancy.
A further appeal was made to the House of Lords who held:
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