The House of Lords gave judgment in the case of Hanoman v London Borough of Southwark 2009 UKHL 29, dismissing LB of Southwark’s appeal.

The issue in the case raised an important practical point concerning the relationship between housing benefit and the right to buy. S153A of the Housing Act 1985 provides a mechanism under which landlords who have delayed in the operation of the RTB machinery have to offset “payments” of rent against the purchase price payable.

Southwark contended that the discharge of Mr Hanoman’s obligation to pay rent by provision of a rent “rebate” under housing benefit legislation was not a “payment”; and so the offset did not apply. The Lords unanimously disagreed with Southwark and held that it did.

Richard Drabble QC (with Dominic Preston) appeared for Mr Hanoman.