Leigh Day in housing stock transfer challenge
Council flats. Photo: istock

Leigh Day in housing stock transfer challenge

22 March 2007

Richard Stein, partner in the human rights department at law firm Leigh Day & Co, is acting for Carole Swords, a long-standing tenant of the London Borough of Tower Hamlets in a challenge to the decision by the Council to transfer 2285 homes to Old Ford Housing Association (OFHA).  The Council balloted tenants and leaseholders of these properties in July 2005 about the proposed transfer of properties, the result of the ballot was a very slim majority in favour of the transfer.  However, a large number of residents complained about a number of aspects of the balloting process including the circulation of unbalanced material before the vote and the conduct of the Council and OFHA staff.  After the ballot the Council proceeded with its plans to organise the stock transfer having received consent from the Secretary of State to allow this on 9th February 2007.

Transfer of Council housing stock

Carole received a letter from the Council a few days before the date on which the Council planned to effect the transfer, the 19th February 2007, and decided to start proceedings on 16th February to challenge the decision by the Secretary of State to grant permission to the Council for the transfer. Carole is concerned that tenants of the Housing Association will not be entitled to the same levels of protection as tenants of the Council.  In particular she is concerned about the regulation of rent levels, security of tenure and the maintenance of property.

The challenges

  • That the Secretary of State (SS) failed to take into account the views of leaseholders
  • That the SS failed to consider whether the circulation of materials by the Council and OFHA before the ballot complied with the Housing Transfer Manual (HTM)
  • That the SS failed to consider whether the overall consultation and ballot process was conducted properly
  • That the SS failed to give residents a chance to comment and failed to take into account criticisms that the Residents’ Support Group had made in coming to her decision

The ballot

Tower Hamlet residents are particularly incensed by the conduct of the ballot and the circulation of misleading material beforehand, indeed a large number of residents have signed a letter calling for an independent inquiry into the overall ballot process.  Complaints include the fact that many tenants did not receive ballot papers; there were no instructions for non-English and non-Sylheti speakers; the Council refused to allow independent observers to witness the votes being counted; OFHA visited and tried to pressurise tenants during the balloting period; at least one polling station was packed with OFHA and Council representatives pressurising people to vote for the transfer and official leaflets were inaccurate and unfair. 

Leigh Day & Co is now seeking permission for judicial review of the Secretary of State’s decision to grant permission to transfer Council housing stock to the Old Ford Housing Association and hopes to achieve a declaration that the SS acted unlawfully in her decision-making and that the consent should be withdrawn.  This application will be heard in the Administrative Court on 22nd and 23rd March 2007.

For more information please contact Richard Stein or Rosa Curling on 020 7650 1200

Information was correct at time of publishing. See terms and conditions for further details.

Information was correct at time of publishing. See terms and conditions for further details.