Simon Bradford, 11, moved into a block of flats in the borough four years ago with his father and disabled mother. He has been victimised ever since.
But the council believes the judgment, which says that a council must consider a child's needs separately under the Children Act 1989, may lead to social services departments being forced to run a similar service to that run by housing departments.
A statement from Tower Hamlets said: 'The family has been on the urgent category rehousing list since July 1996. Because the family will only consider four out of our 52 housing areas and want a ground-floor flat, finding them suitable accommodation is not easy.