Statutory damages for unlawful eviction are calculated in the same way regardless of whether a public sector or private landlord is involved, the Supreme Court has unanimously held.
The decision, in Loveridge v Mayor and Burgesses of the London Borough of Lambeth [2014] UKSC 65, means substantial statutory damages can be awarded against local authorities for unlawful eviction.
Harry Loveridge was evicted in his absence while on a five-month visit to Ghana, even though he was still paying his rent by standing order. Lambeth Council, fearing he had died, forced entry to the flat, disposed of his possessions and installed a new tenant. He was awarded £90,500 damages plus £9,000 for trespass to his goods.
Michael Paget of Cornerstone Barristers, who acted for Mr Loveridge, the tenant, says: “The Supreme Court has made it clear that the Housing Act 1988 applies to all landlords equally, with a potential heavy penalty when a tenant with significant security of tenure is unlawfully evicted. Trying to regain possession without using the courts may not be worth it.
“This statutory damages dog has an awful bite but there is absolutely no reason at all to get bitten. Where the evicted tenant had significant security then full statutory damages will be significant, but no landlord should end up being subject to a full award.
“Where a mistake is made by the landlord it should be corrected as quickly as possible. Lawfully enforcing a possession order through the courts is by far the safest way to guarantee vacant possession.”
Statutory damages are calculated by considering the value of the building with the tenant benefiting from security of tenure and without such security of tenure. It is a purely hypothetical process and does not require an actual sale to a willing buyer.
The Supreme Court held that the Court of Appeal had been wrong to consider what would actually happen after a sale to a willing buyer. The fact that a secure tenancy would be downgraded to an assured tenancy after sale to a private sector buyer was irrelevant.
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