The Crown Estate is urgently seeking a tenant from one of its four London residential estates that are set to be sold to housing specialists Peabody to come forward to act as a representative in a court case to decide what legal status its 320 Regulated Tenants will have after the sale - which is to be completed on 28 February.
The Crown Estate Commissioners and Peabody would like to know now whether the tenants that currently enjoyed the protections of being regulated tenants under the Rent Act will become secure tenants, or less protected assured tenants.
They are seeking a High Court declaration as to the proper interpretation of sections 35(5) and 38(1) of the 1988 Housing Act, and the status the 320 of its 1,400 tenants that are Regulated Tenants will enjoy.
Mr Justice Mann has granted them permission to circulate to the affected tenants of the Cumberland Market, Millbank, Victoria Park and Lee Green housing estates a letter seeking a tenant representative to bring the matter before the court for a declaration.
Photo by Dennis Jarvis via Flickr.
The Commissioners have applied for a Representation Order, which would allow them to represent the tenants' interests, however the judge said that that would be "extremely unusual".
He adjourned the application for a Representation Order until 4 March, by which time the Commissioners hope a tenant will come forward.
The judge urged the Commissioners and Peabody to include in the letter, if possible, an assurance that any representative tenant will have their legal costs paid.
Ranjit Bhose, counsel for the Commissioners, said that his clients believe that the 320 current Regulated Tenants will become Secure Tenants, but that tenants associations had received legal advice that they will enjoy the lesser protections of Assured Tenancies.
He said that, in Addenda to the purchase agreement, Peabody had covenanted to, as far as possible, to treat them as if they still enjoyed the protections of Regulated Tenants under the Rent Act, and had also agreed to charge a maximum of 60% of the market rent.
However, he said that the legal status of the tenants would affect how Peabody should proceed in circumstances such as a rent review, possession proceedings.
As a result, he said that his clients and Peabody would prefer to have the question decided in advance by the High Court, rather than by the County Court when a dispute arises with a tenant.
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