Upper Tribunal calls for right to buy decision to be made "in the round"

The refusal by Milton Keynes Council of a tenant’s request to buy the freehold of a property was upheld by the Upper Tribunal, overturning the decision of the First-tier Tribunal.

In the case of Milton Keynes Council v Bailey, the Upper Tribunal said that consideration of the request to buy the freehold should have been made “in the round” and not largely in relation to a boiler system (the nature of which meant that the property could be construed as unsuitable for elderly tenants). The Upper Tribunal found that the First-Tier Tribunal had been wrong to find that the boiler system alone made it unsuitable for the elderly.

Part V of the Housing Act 1985 gives most qualifying tenants in public sector housing the right to buy the freehold interest in their home, often at a substantial discount from market value. But an exclusion prevents tenants of certain types of housing from exercising the right to buy, including where the property is “particularly suitable … for occupation by elderly persons”.

The appellant in this appeal, Milton Keynes Council, owned the freehold and the respondent was the tenant, Mr Bailey. He attempted to exercise his right to buy the freehold of the appeal property but was refused by the Council on the basis that the appeal property was particularly suitable for occupation by elderly people, and so was exempt under the legislation. Mr Bailey appealed to the First-Tier Tribunal which allowed the appeal, determining that the statutory exception criteria under Part V had not been met and that the Council could not refuse Mr Bailey’s request to buy the freehold. The Council then appealed the first-Tier Tribunal’s decision which took place by way of a review of the First-Tier Tribunal’s decision.

The Upper Tribunal said that the appeal property was particularly suitable for occupation by elderly people. Accordingly, the appeal succeeded, with the result that Mr Bailey could not exercise his right to buy the freehold.