Tenants rented an eight bedroom house in Newquay on an assured shorthold tenancy in May 1993. The property had been used a guest house previously, but the agreement contained a clause that limited its use to a single private dwelling. The tenants, however, used the property as a guest house. In September 1994 the tenants stopped paying rent as they were aggrieved about certain items of disrepair. The landlords gave two months notice that they required possession, and then went on to to issue proceedings for possession and recovery of rent arrears of £3,150. The tenants claimed that their tenancy was a business tenancy rather than a residential tenancy. Secondly, if that failed, they also contended that their tenancy was an assured and not an assured shorthold tenancy because of defects in the notice. The dates on the notice were incorrect and the old form of notice had been used.
HELD: The Court of Appeal held that
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