Operating ad hoc quota scheme lawful; suspension of applicants in rent arrears lawful
The claimant, his wife and his two young daughters occupied a small studio flat he rented from the council. He applied for a transfer to a larger property and was placed in Band B of the council’s Choice Based Lettings Scheme and awarded over 500 priority points. Three years later, he had not been successful in bidding for any properties. For part of that period, he had been suspended from bidding because of his rent arrears. During another period, a limited number (or ‘quota’) of overcrowded Band B applicants had been given additional priority and moved to Band A. He sought judicial review of the council’s allocation scheme, contending that:
•operating a quota scheme was inconsistent with the notion of statutory reasonable preference in relation to all the council’s stock (Housing Act 1996 s167(2));
•there was no reference to the quota in the published scheme itself (Housing Act 1996 s167(1));
•the scheme was not ‘transparent’ because the ad hoc operation of quotas meant that applicants could never know when they might actually get an allocation even if they knew what band they were in and what points they had; and
•the provision in the allocation scheme that tenants in rent arrears would all be suspended from bidding was an unlawfully strict fetter on the discretion to take account of past tenant behaviour (Housing Act 1996 s167(2A)(b)).
Nicol J dismissed the claim. He held that:
•The reasonable preference requirement did not mean that such preference must be given at all times and in relation to all properties. ‘It is sufficient if such preference is given over the course of a reasonable period’ (para 22).
•The quota was dealt with in the council’s annual report to which the allocation scheme made reference. It may be cumbersome to have to look at two (or possibly more) documents but it was not unlawful.
•Confining bidding for specific properties to particular groups did mean that the operation of the scheme was not as transparent as it might otherwise be, but the council was entitled to decide that this disadvantage was outweighed by the advantage of a more equitable distribution of its scarce accommodation.
•Although applicants in arrears were normally suspended from bidding, the scheme provided that the director of housing could exercise discretion ‘in exceptional circumstances’ (para 24) to allow applicants with rent arrears to bid or to receive offers. This was a lawful application of Housing Act 1996 s167(2A)(b). Automatic suspension had practical advantages. It took effect swiftly and effectively, and at a time when the arrears were likely to be at a relatively modest level so that there was a better chance of them being paid off. The scheme was not unlawful simply because it did not set criteria for what were exceptional circumstances in which the rule could be waived.