A row about allocation of scarce housing could be heading for the court of appeal after judges rejected a claim that a housing association broke equality laws with its policy of providing homes only to Orthodox Jews.

The Agudas Israel Housing Association, in Stamford Hill, east London, was accused by lawyers acting for a single mother of four of allowing Orthodox Jewish families to “jump the queue”.

The woman, who is not being named and is not Jewish, had seen a property listed on Hackney council’s housing system which stated: “Consideration only to the Orthodox Jewish community.”

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