North Herts DC v Carthy
Mr and Mrs Carthy started to build a house overseas. Before the house was finished the money ran out and they returned to the UK. The council put them on the housing register. In early 2000 the couple's finances improved and they finished the house. They did not tell the council. In July 2000 they moved into a council house.

The council discovered the true position and claimed possession on the ground that the tenancy had been granted as a result of a "false statement". Their statement, that they owned an uninhabitable house, had not been revised or updated.

The local judge dismissed the claim on the basis that, even if the couple had failed in their duty to keep the council informed of developments, the council would still have granted the new tenancy anyway.

The council appealed. The Appeal Court decided that the ground for possession was met. The only real question was whether it would be reasonable to order possession and that issue should be re-tried.