London Borough of Camden in court to protect affordable housing
Planning and Environment, Housing, Local Government
On 28 November 2024, Penelope Reed KC sitting as a High Court Judge granted an interim injunction prohibiting 2 flats in WC1 from being disposed of other than to a registered provider for use as social rented housing until trial.
On 2 December 2011, the London Borough of Camden granted planning permission for a residential development of 15 flats in WC1 subject to an agreement under s. 106 of the Town and Country Planning Act 1990 (“S106 Agreement”). The S106 Agreement required 2 flats within the development to be used as social rented housing (“Flats”).
The appointed registered provider, St Andrews Community Housing Association Limited, was de-registered by the Regulator of Social Housing on 7 September 2023. On 22 February 2024, St Andrews’ mortgagee served notice on Camden triggering a 3 month moratorium under the S106 Agreement following which, if no registered provider was found to take a transfer of the Flats, they were to be sold on the open market. The 3 month moratorium expired without any registered provider having been identified which was willing and able to take a transfer.
Correspondence followed between Camden Legal Services and solicitors acting for the mortgagee concerning the existence of a default under the legal charge.
On 23 August 2024, the London Borough of Camden brought a claim in the High Court, Chancery Division, seeking a declaration that the mortgagee was bound by, and an injunction to enforce, the affordable housing obligations in the S106 Agreement against the mortgagee and a limited partnership which is the beneficial owner of the Flats.
Camden alleges that St Andrews was de-registered pursuant to an affordable housing avoidance scheme implemented by the defendants and calculated to cause St Andrews’ de-registration, triggering the mortgagee’s power of sale under its legal charge. The defendants deny this, and at the return date submitted that Camden’s case was “fanciful”.
At a hearing on short notice to the defendants on 5 September 2024, Mr Justice Zacaroli granted a notification injunction to hold the ring until the return date.
The return date was listed on 22 November 2024 before Penelope Reed KC, sitting as a High Court Judge.
On 28 November 2024 the Judge delivered a judgment finding that Camden had a real prospect of success at trial, was not required to give a cross-undertaking in damages, the balance of convenience favoured granting the injunction and, although there had been innocent material non-disclosure at the hearing on 5 September 2024, it was clearly in the interests of justice to grant an interim injunction until trial. Costs were reserved to the trial judge.
Matt Hutchings KC is instructed by William Bartlett of Camden Legal Services for the claimant.
Wayne Beglan is instructed by Fred Sheppard of Edwin Coe for the defendants.
