Tenancies for the homeless

Newham was anxious to achieve the government's target of reducing use of B&B hotels for homeless families. It gave families in B&Bs notice that they had been allocated private sector leased accommodation but the locations of the new homes were not disclosed until the families got to the council's offices to sign non-secure tenancy agreements. Requests for an opportunity to view were refused; the families were told that the council considered the homes suitable and that if they disagreed they could seek a review after the tenancy had been accepted. If the tenancy was refused, the B&B would be cancelled.

Mrs Khatun, a young Muslim raised in Newham, reluctantly accepted a home that turned out to be above a pub. She thought she had been unfairly treated and also said the specific terms of the tenancy were unfair. The council said its scheme was fair and that unfair contract laws did not apply to council tenancy agreements.

The judge decided that fair administration entitled a person to an opportunity to view a home before being required to take a tenancy. The council's sign-up letters were coercive and unfair and its policy was unlawful, the judge said. The judge also decided that the 1999 Unfair Terms in Consumer Contracts Regulations did apply to tenancies.