The owner of a Soho sex shop, and flats above that are used as a brothel, must wait to hear whether the High Court will order it to sell the £0.5m property to Westminster City Council for family housing.
Owen J has reserved judgment on whether to confirm a compulsory purchase order made by Westminster against Ainsdale Investments Ltd, which runs the unlicensed sex shop from its premises at 2 Peter Street, Soho, London W1.
In their unopposed evidence, the council maintain that the residential accommodation above the shop is used as a brothel. They argue that although Ainsdale’s involvement in this remains unclear, it does receive rent from the prostitutes or pimps who operate from the premises.
Ainsdale challenged the decision of a planning inspector to support the council’s CPO, claiming that it was being used to control the sex trade, and suggesting that other, more appropriate methods should be used to achieve this. Ainsdale argued that the council’s CPO should not be used to force the sale of its commercial property.
Lawyers for the First Secretary of State defended the planning inspector’s decision, saying that he had accepted that the council had been seeking to improve their housing stock in order to address the homelessness problem in Westminster.
They argued that there was a legitimate need to purchase the commercial element of the property, because the presence of the sex shop would adversely affect the quality of family housing that could be provided in the rest of the premises. They said that Ainsdale would receive the full market value of the building, which is in a dilapidated condition. This is thought to be around £0.5m.
Ainsdale Investments v First Secretary of State Administrative Court (Owen J) 29 March 2004.
References: EGi Legal News 30/3/04