Housing Act 1985 — House purchased from local authority — House containing defects — Scheme of assistance for defective-house owners — Applicants claimed assistance and repurchase — No scheme for repair in force — Local authority declining to repurchase as scheme for repair imminent — Whether local authority acted reasonably in failing to reach decision
In 1972 the applicants bought a house from the appellant local authority. It was a system-built concrete house of the Hawksley SGS type, and like many others it has exhibited serious defects. Where defects have rendered these types of houses unsaleable and unmortgageable, Part XVI of the Housing Act 1985 contains provisions for the assistance of owners. Sections 537-538 of the Act provide for either a reinstatement grant, to enable the defects to be remedied, or, where the specified requirements are satisfied, repurchase by the local authority.
In June 1986 the applicants requested the appellants to repurchase their house on the ground that the appellants had not then instituted a repair scheme for use with the reinstatement grant. The appellants’ answer was that they were not satisfied that it was “unreasonable to expect [the applicants] to secure or await the carrying out of the work required to reinstate the defective dwelling” within the meaning of section 537(2) of the Act; accordingly they could not make a determination under section 537(1) until a scheme for repair was instituted. A similar reply was given to a further request in June 1987. McCowan J (June 14 1988) allowed the application for judicial review of the appellants’ failure to deal with the request; he held that when a request for assistance is made, a local authority must make up its mind promptly and this the appellants had failed to do. The appellant council appealed.
Held The appeal was dismissed. Where a local authority receives an application for assistance, sections 536(1) and 540(1) require them “as soon as reasonably practicable” to give notice as to eligibility and, where eligible, as to the form of assistance to which an applicant is entitled. Although the words “as soon as reasonably practicable” are absent from section 537(1), the provision that governed the determination of the form of assistance, an authority must still make up its mind. In the present case the appellants had failed to make a decision in respect of either of the applicants’ two requests; the appellants could not wait indefinitely in the hope that there would one day be a scheme of repair.
David Keene QC and Charles Cross (instructed by the solicitor to Thamesdown Borough Council) appeared for the appellants; and Timothy Brennan (instructed by T F Hillman, of Swindon) appeared for the respondent applicants.
