Tenancies for the homeless

Trying to achieve the government target of eliminating the use of B&B for homeless families, Newham council found private sector leased accommodation in its own borough and elsewhere in London for families in B&B.

Properties were allocated but addresses were not disclosed until the families arrived at the council office, where they were asked to sign tenancy agreements there and then. Requests for a chance to view were refused. The families were told that the council considered the property "suitable" and if the tenancy was refused, the current B&B would be cancelled.

Those who accepted then signed a non-secure tenancy agreement. There was an issue about whether the terms of those tenancies were fair.

A judge decided that fair administration required an opportunity to view accommodation before being required to take a tenancy. He said the council's sign-up letters were coercive and unfair and its policy was unlawful.

But the Court of Appeal allowed Newham's appeal. Although councils could give an opportunity to view, the law did not require that they must. What was important was the council's assessment of suitability, not the applicant's response to a viewing. If an applicant, having accepted, found the property unsuitable they could apply for a review.

The policy was not unlawful. The Court of Appeal also decided that the 1999 Unfair Terms in Consumer Contracts Regulations did apply to council tenancies so that the issue of the fairness of the terms would need to be considered.