The Housing Associations Act 1985 empowered a local authority to give guarantees in relation to registered housing associations. A local authority guaranteed a bank loan for an unregistered housing association.
Held: A Local Authority had no power to guarantee a loan to an unregistered housing association. Section 111(1) of the 1972 Act could not be relied on to support the guarantee, which was consequently ultra vires.
Peter Gibson LJ adopted the proposition of counsel that: ‘Where Parliament has expressly enacted provisions which define the means by which local authorities are to carry out their functions, section 111(1) of the Act of 1972 cannot be relied upon in support of performance of those functions by other means not expressly empowered by the relevant provisions’
Peter Gibson LJ
Times 07-Nov-1996,  EWCA Civ 797, (1996) 95 LGR 574
Local Government Act 1972 111, Housing Associations Act 1985
England and Wales
Appeal from – Morgan Grenfell and Co Ltd v Sutton London Borough Council QBD 23-Mar-1995
A guarantee of loan to a non-registered housing association was ultra vires. . .
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Updated: 14 April 2021; Ref: scu.140664