ON APPEAL FROM THE COUNTY COURT CENTRAL LONDON
HIS HONOUR JUDGE MITCHELL
A40CL105
Strand, London, WC2A 2LL |
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B e f o r e :
LADY JUSTICE GLOSTER
and
MR JUSTICE BLAKE
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JOHNSTON |
Appellant |
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- and - |
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CITY OF WESTMINSTER |
Respondent |
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Mr David Warner (instructed by City of Westminster) for the Respondent
Hearing dates : Wednesday 18th March 2015
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Crown Copyright ©
Lady Justice Gloster :
Introduction
The principal relevant provisions of the Act
"Homelessness and threatened homelessness
(1) A person is homeless if he has no accommodation available for his occupation, whether in the UK or elsewhere, which he
(a) is entitled to occupy by virtue of an interest in it or by virtue of an order of a court,(b) has an express or implied licence to occupy, or(c) occupies as a residence by virtue of any enactment or rule of law giving him the right to remain in occupation or restricting the right of another person to recover possession.
…….
(3) A person shall not be treated as having accommodation unless it is accommodation which it would be reasonable for him to continue to occupy..."
"Referral of case to another local housing authority."
(1) If the local housing authority would be subject to the duty under section 193 (accommodation for those with priority need who are not homeless intentionally) but consider that the conditions are met for referral of the case to another local housing authority, they may notify that other authority of their opinion.
(2) The conditions for referral of the case to another authority are met if—
(a) neither the applicant nor any person who might reasonably be expected to reside with him has a local connection with the district of the authority to whom his application was made,(b) the applicant or a person who might reasonably be expected to reside with him has a local connection with the district of that other authority, and(c) neither the applicant nor any person who might reasonably be expected to reside with him will run the risk of domestic violence in that other district."
"Duties to applicant whose case is considered for referral or referred."
(1) Where a local housing authority notify an applicant that they intend to notify or have notified another local housing authority of their opinion that the conditions are met for the referral of his case to that other authority—
(a) they cease to be subject to any duty under section 188 (interim duty to accommodate in case of apparent priority need), and(b) they are not subject to any duty under section 193 (the main housing duty), but they shall secure that accommodation is available for occupation by the applicant until he is notified of the decision whether the conditions for referral of his case are met.
(2) When it has been decided whether the conditions for referral are met, the notifying authority shall notify the applicant of the decision and inform him of the reasons for it.
The notice shall also inform the applicant of his right to request a review of the decision and of the time within which such a request must be made.
(3) If it is decided that the conditions for referral are not met, the notifying authority are subject to the duty under section 193 (the main housing duty).
(4) If it is decided that those conditions are met, the notified authority are subject to the duty under section 193 (the main housing duty).
(5) The duty under subsection (1) ceases as provided in that subsection even if the applicant requests a review of the authority's decision (see section 202).
The authority may secure that accommodation is available for the applicant's occupation pending the decision on a review."
Factual Background
".. following our referral of 28th October 2011, Eastbourne.. has accepted a housing duty towards you. Our housing duty has therefore come to an end."
The letter went on to state that accordingly Westminster intended to stop providing him with temporary accommodation on 12 March 2013. On 27 March 2013 Mr Johnston sought a statutory review of the decision to refer.
"Upon the Respondents having agreed to accept a fresh application from the Appellant under section 183 of the Housing Act 1996
IT is ordered by consent
1. The Appellant seeks to withdraw his application for permission to appeal which stands dismissed without further formality".
We shall have to consider in greater detail below whether, by implication, and as suggested in oral argument by Mr Martin Russell, who appeared on behalf of Mr Johnston, there were any further terms of the compromise.
"As you are not homeless, we have no duty to find you a home and we cannot offer you somewhere to live.
We believe you are not homeless because Eastbourne have accepted a full housing duty towards you and are prepared to provide you with temporary accommodation until you secure permanent accommodation in Eastbourne.
You made a homeless application to Westminster Council on 6th July 2012. We accepted that you were owed a full housing duty. However this duty was owed to you by Eastbourne Council due to you having a local connection with Eastbourne.
You requested a review of this decision on 27th March 2013. Our decision to refer you to Eastbourne was upheld by our reviews department on 22nd May 2013.
We received an e-mail from the manager at Eastbourne's homeless person unit (Michael Feely) on 4th March 2013 advising us that Eastbourne have accepted a duty towards you and will provide you with accommodation.
You re-approached Westminster Council on 26th February 2014 asking to make a fresh homeless application. As part of our enquiries we contacted Eastbourne Council and spoke to Michael Feely. Michael stated that you had not approached Eastbourne to take their offer of temporary accommodation. Mr Feely confirmed Eastbourne still owe you a housing duty.
As you did not approach Eastbourne at the time the referral was completed Eastbourne Council still have a full housing duty towards you. Michael stated you are still able to approach Eastbourne Council to take their offer of temporary accommodation."
"As you are aware the Court of Appeal case was compromised pursuant to an order made by Lady Justice Rafferty on the basis that the appeal became otiose in that under the local connection rules our client was residing in Westminster for three out of the last five years and therefore did not have a connection with Eastbourne.
As a result of that your authority agreed to accept a fresh application.
We were extremely surprised literally on the same day as our client approached your authority they were able to come to a Section 184 decision saying that our client is not homeless because Eastbourne have accepted a full housing duty towards you.
It is astonishing that you reach such perverse decision. We say that because clearly the decision maker has not considered the constituent parts of Section 175 of the Housing Act 1996.
We don't propose sending you a copy of the Section because you should be aware of the Section. If you believe that he falls within section 175 please direct us to what party [sic] he falls within.
He has no license [sic], he has no interest or tenancy in any accommodation. He may well have an opportunity of such but he has no interest therefore it is just simply wrong for you to find that he is not homeless."
"As agreed Westminster accepted a fresh application and reached a fresh decision that Eastbourne Council still owe a housing duty towards Mr Johnston.
We have agreed that we will not provide accommodation as Mr Johnston is not considered to be homeless and can return to Eastbourne and has been advised to do so.
Personal circumstances
I have considered Mr Johnston's personal circumstances. The decision reached on his homelessness application is that he is 'not homeless' as Eastbourne Council will offer him accommodation. His homelessness should therefore not be a factor in this case and he should return to Eastbourne."
"Mr Johnston requested a review of this decision and you have made submission in support of the review. Within you [sic] submission you have argued that Mr Johnston is homeless as he has no interest in any accommodation in Eastbourne.
I note your comments, and whilst I acknowledge that Mr Johnston has not been offered accommodation, the fact remains that if he were to approach Eastbourne, they would make an offer of accommodation to him. As stated above, Eastbourne currently have a duty towards Mr Johnston, as such they are responsible for providing him with assistance.
Having regard to all of the above factors I intend to uphold the decision that Mr Johnston is not homeless."
"On 27th February 2014 Mr Johnston's application was rejected on the grounds that he was not homeless in line with s. 175 of the Housing Act (1996).
Mr Johnston requested a review of this decision and you have made submission in support of the review. Within you [sic] submission you have argued that Mr Johnston is homeless as he has no interest in any accommodation in Eastbourne. You have stated that we have not explained why Mr Johnston does not fit the statutory definition of homelessness.
I note your comments, and I acknowledge that Mr Johnston has not been offered accommodation by Eastbourne. The fact remains that if he were to approach Eastbourne, they would make an offer of accommodation to him. As stated above, Eastbourne currently have a duty towards Mr Johnston, as such they are responsible for providing him with assistance.
Having considered the information contained within the file, I am not satisfied that Mr Johnston is homeless pursuant to Part VII of the Housing Act 1996.
I would like to reiterate that if Mr Johnston looses [sic] accommodation through a deliberate act or omission, and consequently become homeless he is likely to have become homeless intentionally. If as a result of this he reapplied to this authority for assistance, the Council may deem that it has no duty towards him apart from providing you with advice and assistance."
The proceedings in the County Court
"The respondent's decision that the appellant was not homeless was irrational and failed to identify how the appellant had accommodation which satisfied the test in Section 175 of the Housing Act 1996:
(a) the prospect of being offered accommodation in Eastbourne as yet unidentified did not mean that he had accommodation available to him in which he had an interest, a license or any right to remain in occupation;(b) the prospect of being offered accommodation in Eastbourne as yet unidentified meant that Westminster had no means of saying (as they would have to) why it was reasonable for the appellant to continue to occupy it."
"rather similar to buying a cinema ticket for an advance performance in the cinema, namely that although the seat may not have been specifically reserved when you have turned up to the cinema to see a film, you expect to be able to have a seat and, indeed, that is what happens. He also uses the same analogy with regard to booking a hotel room, that you turn up on the evening of your booking and you expect to be able to occupy and have a license to occupy the room in question."
See paragraph 16 of the judgment.
"17. In my judgment, this argument is entirely in accordance with the purpose of these Sections of the Act. Although it was not specifically argued, it does seem to me the local authority could have accepted a full housing duty and then referred the matter on to Eastbourne. It seems to me the result would have been the same. However, it is a technicality but in my judgment a technicality which does not affect the outcome of the case. I have reached the conclusion that the local authority is entitled to say that, as a matter of law, the local authority in Eastbourne has accepted the full duty to re-house the appellant and so the appellant is not in those circumstances, homeless. As I say, the alternative would have been for Westminster to accept full duty and then refer the matter or to accept a duty and then refer the matter on to Eastbourne. It seems to me that either option results in the same result, namely that if the appellant were to approach Eastbourne, they would accept a full duty to re-house him and he has not done so. In all the circumstances, therefore, it seems to me that I ought to dismiss the appeal."
The reasoning is somewhat opaque, but the basis of the judge's conclusion appears to have been that, because Eastbourne had accepted the full duty to re-house Mr Johnston, Mr Johnston had accommodation available to him and was not in those circumstances homeless for the purposes of section 175. I shall refer to this basis for the judge's conclusion as "the first ground".
"Although it was not specifically argued, it does seem to me the local authority could have accepted a full housing duty and then referred the matter on to Eastbourne. It seems to me the result would have been the same."
appears to be a conclusion on an alternative basis, namely that Westminster could have accepted that Mr Johnston was homeless, could then have referred him to Eastbourne again, and would then no longer have owed any duty to Mr Johnston pursuant to the provisions of section 200(1). I refer to this alternate basis for the judge's conclusion as "the second ground".
The grounds of appeal
i) the fact that an applicant might be offered accommodation by another authority which might satisfy section 175(1) did not entitle the decision maker to find that the applicant was not homeless; and
ii) section 175(3) could not be satisfied where the relevant accommodation was hypothetical and unidentified.
The arguments presented by the parties
i) Section 175 was expressed in the present tense and required accommodation which an applicant had available for his occupation under an interest, a licence or a rule of law. Mr Johnston had no such accommodation.
ii) Section 175(3) was not satisfied by a "notional" or hypothetical occupation. The definition contemplated residence not a notional residence: see Re Islam [1983] 1 AC 688, 716A per Lord Lowry. In Fletcher v Brent LBC [2006] EWCA Civ 960; [2007] HLR 12, the Court of Appeal held (Peter Smith J. at [42] with whom Mummery and Rix LJJ agreed) that section 175 required a decision maker to ascertain the nature of the applicant's interest in property (identified in that case) and whether that interest conferred a right to occupy. In Mr Johnston's case, any interest or licence was hypothetical, and it cannot be said that it would be reasonable to continue to occupy accommodation when the accommodation was unidentified.
iii) Westminster was not entitled to say that he had ceased to be homeless because Eastbourne had not discharged the duty they accepted in 2013 (either by performance or by ending it). Mr Johnston was no less homeless than an applicant who had a local connection with a borough for all time under section 199(6) (where he had been placed in NASS accommodation). When such an applicant made an application to a different borough, his undoubted local connection elsewhere did not prevent him being homeless.
iv) In response to questions put by the court in the course of argument as to whether Westminster's decision could be supported on an alternative ground that, by virtue of section 200(1)(b), and its referral to Eastbourne, Westminster no longer owed any statutory duty to Mr Johnston, Mr Russell submitted that, once Westminster had agreed by the consent order of 26 February 2014 to accept a fresh application from Mr Johnston, it had to decide what, if any, duty was owed to him: section 184. He argued that, by the terms of the compromise, and its agreement to accept a fresh application, Westminster was effectively precluded from saying that it no longer owed any duty on the grounds that Eastbourne had previously accepted the referral; the basis of the compromise was that, by the date of the consent order, both parties appreciated that, under the local connection rules, Mr Johnston had resided in Westminster for three out of the last five years and therefore it was arguable that he no longer had any connection with Eastbourne; Westminster therefore had to decide (as it had done on 1 November 2011) whether Mr Johnston was homeless, had a priority need for accommodation and had not become homeless intentionally and whether he still had no local connection with Westminster but had a local connection with Eastbourne. If Westminster had so decided, and had then referred Mr Johnston to Eastbourne, Mr Johnston would have challenged the conclusion that he still had a local connection with Eastbourne. In support of this argument Mr Russell referred to the letter dated 5 March 2014 from MB to Westminster which I have quoted above.
i) Mr Johnston's case turned on the argument that any accommodation which was to be offered by Eastbourne was "notional" or "hypothetical". Although it was correct that that accommodation had yet to be specifically allocated, it was wrong to suggest that this made the accommodation either notional or hypothetical. Eastbourne was under a statutory duty to provide suitable accommodation to Mr Johnston from its stock of temporary accommodation. That duty was real as was the accommodation that would be provided in discharge of it.
ii) It was Westminster's case before HHJ Mitchell (as it remained in the Court of Appeal) that it would lead to an absurdity for section 175 to be construed so as to lead to an applicant being classed as homeless notwithstanding that another local housing authority was under a continuing statutory duty to provide him with accommodation upon his attending their offices to request it.
iii) The analogy drawn before HHJ Mitchell (and rightly accepted by him) was of an hotel guest who, having booked a room in advance, had an implied licence to occupy a room at the hotel even if the room was not specifically allocated until the guest attended at reception for that purpose. Mr Johnston would be allocated specific accommodation upon his attending at Eastbourne's offices. Until he did so, and was provided with that accommodation, it was not a distortion of the statutory language to conclude that he had an implied licence to occupy accommodation to be provided to him by Eastbourne.
iv) It was no answer to rely on section 175(3) as requiring specific accommodation to be identified in order to determine whether it would be reasonable for him to continue to occupy it, as any discharge of the statutory duty required the accommodation offered to be suitable. The suitability of Eastbourne as a place for Mr Johnston to live had already been addressed as part of the earlier application and review and was upheld by HHJ Faber on appeal
Discussion and analysis
"41. With respect to the learned Judge that does not satisfy in my view the requirements of section 175 HA 1996. The section can only be satisfied if the Appellant either has an interest at the time for consideration (namely the review) which confers on him an entitlement to occupy (subsection (a)) or he has an express or implied licence to occupy (subsection (b)).
42. The suggestion that he had a licence was entirely contrary to the Respondent's attitude which was throughout that the tenancy continued. Second the difficulty about the licence is determining the nature of the licence. Mr Russell sought to support the learned Judge's decision that it was not necessary for her to determine whether or not there was a tenancy or a licence. It is difficult to see how the section can be satisfied unless one knows the nature of the interests and then satisfies oneself that the relevant interest confers on the Appellant a right to occupy the Property. There is no problem if he was a Secure Tenant but, for the reasons I have set out above, this was not the case. There may be a basis for suggesting that he has some kind of licence express or implied to occupy the property. However there has been no inquiry as to the nature of that licence or its terms. This is important. For example the licence to occupy a dwelling house conferred by the Respondent would be a Secure Licence just like a Secure Tenancy see section 79 (3) HA 1985. In that context if the Appellant had a Secure Licence he would have such an interest as to justify a conclusion that he was not homeless. Conversely he might only have had an express or implied licence to store his furniture and possessions there temporarily whether for payment or gratuitously. Such an arrangement might not give rise to a Secure Licence and might not amount to a licence to occupy the Property as a residence.
43. It is possible that an actual decision as to whether an interest created a lease or a licence would not be necessary. For example if a document which purported to be a licence might in law be a lease but whatever the nature of the arrangements there was a Secure Tenancy or licence an investigation as to whether or not the document created a lease or licence would be sterile. Such a possibility is likely to be rare. It is difficult however to see how, as I have said a decision can be made that the Appellant's interest under a licence (if any) means that he is not homeless until the nature of that interest is actually determined and its terms.
44. Merely because the local authority Respondent wishes to make the Property available is in my view insufficient. It is not a question of offering alternative accommodation but examining the precise terms upon which the Property is alleged to be available for occupation by the Appellant at the date for determining that issue, namely the Review date (although Mr Watkinson conceded that if the circumstances had changed from the Review date those changed circumstances ought to be taken into account when the matter is considered by the Court)." (My emphasis.)
i) dismissing the appeal;
ii) confirming Westminster's review decision to the extent that it concluded that Eastbourne had accepted a duty to house Mr Johnston, and were under a continuing duty to house him;
iii) varying by deletion that part of the decision which concluded that Mr Johnston was not homeless; and
iv) substituting a finding that in the circumstances Westminster no longer owed any housing duty to Mr Johnston.
Mr Justice Blake:
Lord Justice Sullivan: