Westminster City Council has lost its appeal against a High Court ruling that allows 16 affordable homes in central London to remain on the private market.
The Court of Appeal upheld the earlier judgment on Thursday, confirming that the properties in Marylebone are no longer required to be used as affordable housing.
The case centred on whether Gems House Residences Chiltern Street Ltd was legally obliged to keep the flats as affordable homes after purchasing them following the deregistration of their previous owner by the Regulator of Social Housing.
Planning permission for the mixed-use development was granted in 2013 and included a Section 106 agreement requiring 16 of the homes to be provided as affordable housing.
However, the original housing provider, Kinsman Housing, was deregistered by the Regulator of Social Housing in 2023 after defaulting on a loan. The lender subsequently sold the properties to Gems House Residences Chiltern Street Ltd.
The Court of Appeal ruled that the company was not bound by the original developer’s obligations under the Section 106 agreement, meaning it is not legally required to maintain the homes as affordable housing.
The decision upholds the earlier High Court judgment and brings Westminster City Council’s legal challenge to an end.