A LONDON council has lost its appeal to overturn a High Court decision which will see the loss of more than a dozen affordable homes.

The Court of Appeal upheld a judgment against Westminster City Council on Thursday requesting 16 properties in Marylebone remain affordable housing after the flats were sold on the private market.

Judges examined whether Gems House Residences Chiltern Street Ltd was allowed to let the properties despite having bought them after a social landlord was deregistered by the Regulator of Social Housing.

Planning permissions were granted for mixed-use development in 2013, including a Section 106 agreement with 16 affordable homes.

Housing provider and then property owner Kinsman Housing was deregistered by the regulator in 2023 and defaulted on its loan, allowing the lender to sell the homes to Gems.

Court of Appeal judges upheld the previous decision concluding that Gems was not bound by the “developer’s obligations” to provide affordable housing.