London Borough of Newham v Khatun [2004]

It was held that the UTCCR 1999 apply to contracts relating to land, such as tenancy agreements.
Tenants are regarded ‘consumers’ and landlords are ‘sellers or suppliers’. This includes councils.

The Court of Appeal heard conjoined appeals against orders allowing judicial review of decisions of Newham council in respect of its housing responsibilities arising under the homeless persons legislation contained in the Housing Act 1996.
The applicants had all applied to the council as homeless persons to be provided with accommodation under this Act.
The judicial review proceedings relate to the council’s policy or practice in providing housing to persons to whom they owe the duty to ensure that accommodation is available for their occupation.
It was complained by the applicants that that the council required them to accept or refuse the accommodation it offered, without giving them the opportunity first to view it. The judge accepted their criticisms.

One of the applicants also asked whether the UTCCR 1999 applied to his tenancy agreement, and further questions arose.
The wider issues were:

• whether the UTCCR 1999 apply to contracts for the grant or transfer of an interest in land at all,
• whether the UTCCR 1999 apply to public authorities such as the council, and
• whether the council was a ‘seller or supplier’ and the tenants were ‘consumers’ under the UTCCR 1999.

HELD:
The High Court decided that the UTCCR 1999 do apply to tenancy agreements and other contracts relating to a transfer of an interest in land.
The council was considered a supplier and the tenant a consumer.

The Court of Appeal confirmed that tenants in both the private and public sectors are protected by the Unfair Terms in Consumer Contract Regulations 1999.
The UTCCR 1999 apply to contracts relating to land (including tenancy agreements), and do cover councils.

Citation: London Borough of Newham v Khatun [2004] EWCA Civ 55