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Open season

Published 04 September 2023

A Court of Appeal ruling that housing associations can be considered public bodies could drive down evictions and expose them to scrutiny, says Chris Morris.

The Court of Appeal has decided not only that the allocation and management of social housing is a public function but that ending a tenancy is a public rather than a private act.

It feels right that allocation decisions could be subject to scrutiny on public law principles because in many parts of the country housing associations are the sole providers of social housing. Whether the decision would survive an appeal in the House of Lords is another matter. You would not want to bet on it.

The impact of the Weaver ruling on allocations is likely to be minimal – but the impact on evictions could be great.

Housing advisers have often found it hard to stomach the difference between the way council and housing association tenants are sometimes treated. If you are a secure tenant under the Housing Act 1985, the council normally has to show a legal ground for eviction and that it is reasonable for you to be evicted. But most housing association tenants are assured tenants under the 1988 Housing Act – and some associations have exploited this difference by bringing proceedings in such a way that the tenant cannot stop the eviction by arguing about reasonableness.

Possession proceedings based on section 21 notices (where an assured shorthold tenancy is simply being ended on two months’ notice) or where the proceedings are based on ground 8 (two months’ rent arrears) are the prime examples. Housing associations using those grounds may not find it as straightforward in the future.

Part of the reason for Weaver’s importance is that until a couple of years ago a tenant wanting to raise public law arguments would have to raise them in the High Court in judicial review proceedings.

Weaver comes relatively hot (in legal terms anyway) on the heels of the 2006 House of Lords decision in Leeds v Price which gave the green light to public law defences in the county court. The fact that the judges have encouraged all of the issues to be bundled together in the county court means there is a simpler and less convoluted procedure which will encourage more to come forward.

Public law challenges will focus on the decision-making process, its fairness and rationality as well as on proportionality. Although there is no statutory duty on associations to make enquiries or to give reasons, tenant lawyers will, in the right sort of case, seek to persuade a judge that an absence of reasons should lead to a finding of irrationality or a finding that eviction is disproportionate.

Tenant lawyers will seek the housing file – they will want to establish what considerations and information was taken into account in the decision-making process. Housing files will be requested and scrutinised.

If allegations have been made against the tenant, have they been put to the tenant and has a fair procedure been followed? Tenants should have an opportunity to comment on complaints about their behaviour or non-payment of rent before the decision to serve notice or evict is taken.

‘Providing a housing association acts fairly and rationally, a court is unlikely to upset its decision’

Research confirms that in nearly one half of households living in social housing there is at least one person with a disability or serious medical condition. Where there is disability, landlords will need to have considered the disability equality duty under section 49A of the Disability Discrimination Act. That isn’t to say that disability is a defence but equality issues should be taken into account.

Tenant advisers will need to make sure that any new evidence (eg medical) or new issues (eg housing benefit backdate) which might have a bearing on the eviction process are put forward for consideration to the housing association.

Associations will take comfort from the fact that nothing in Weaver outlaws the use of ground 8 or section 21 and the Housing Corporation guidance expressly incorporated by the tenancy agreement was in effect held by the divisional court not to be worth the paper it was written on.

Provided an association acts fairly and rationally, a court is unlikely to upset its decision. But it will now have to make tactical decisions about whether it persists in using mandatory grounds and whether to put in evidence explaining its decisions.

Chris Morris is solicitor at Shelter.

Weaver verses L&Q

R (on the application of Weaver) v London & Quadrant Housing Trust & Equality & Human Rights Commission (Intervener)

Court of Appeal 18 June 2023

[2008] EWCA Civ 587

In 1993, Susan Weaver became a tenant of London & Quadrant Housing Trust (L&Q), a registered social landlord.

Her assured tenancy agreement stated that L&Q would comply with the guidance issued by the Housing Corporation. Circular 07/04 (later replaced by Circular 02/07) provided that ‘before using Ground 8, associations should first pursue all other reasonable options…’

L&Q served notice citing mandatory ground 8 of Schedule 2 of the Housing Act 1988 before commencing court action. Under ground 8, when eight weeks’/two months’ rent arrears are owing at the date the notice was served and at the day of the hearing, the court must award possession. The reasons the rent was not paid are irrelevant.

Susan Weaver applied for judicial review arguing that L&Q had not complied with the Housing Corporation guidance and that the use of ground 8 was unlawful. She had to satisfy the court that L&Q was amenable to judicial review as a ‘public authority’.

The divisional court held that using ground 8 was not unlawful but declared that allocating and managing social housing including decisions to terminate tenancies were public functions. L&Q appealed.

By a 2:1 majority the Court of Appeal decided that ending the tenancy was a public, rather than a private act.