The judgment could halt the renovation of the city's derelict buildings until homes can be found for their occupants.

The ruling by Judge Mahomed Jajbhay on Friday put a stop to the eviction of 300 residents from three inner-city properties but also set a clear precedent for future eviction hearings in Johannesburg. There are believed to be about 60 orders outstanding.

Jajbhay also ordered the city to devise and implement a comprehensive plan to cater for the people they seek to evict.

A key component of the revitalisation programme was the clearance of an estimated 235 "bad" buildings perceived to be sources of degeneration and crime in the inner city.

In December the council, after much pressure, approved R40m for the City of Joburg Property Company to roll out rental units for the city's poorest of the poor.

However, the project will house only 1000 of the reported 82000 people living in dismal conditions, with the first building expected to be completed in about two years.

Spokesman for the city Gabu Tugwana said yesterday that the city would wait for a decision from their legal team about how to proceed, before commenting.

"We need to decide whether to appeal the judgment," he said.

The case involves people living in four houses on Joel Street in Berea; a building known as San Jose, also in the area; and a disused panel-beater in Main Street in the city centre, all of which are in various stages of disrepair.

The judge also took the city to task for not yet having a housing plan as required by the Housing Act. He said that, in these circumstances, it could not justify using safety regulations for evictions.

The judge, who conducted an inspection of the contested buildings before the hearing, said that no matter how "unsatisfactory their circumstances may be, the residents at least have secure shelter from the elements".

He dismissed the city's argument that finding in favour of the residents would "place a stop sign on the city's difficult road to upliftment of the inner city".

Cathi Albertyn, director of Wits Centre for Applied Legal Studies, one of the groups that appeared for the residents, said: "We sincerely hope Friday's ruling will set an important precedent and act as a deterrent to future evictions and clearly expose the city's policy of bad building clearances as arbitrary, inhumane and in violation of international human rights law and SA's constitution."