Craig Keenan from Community Law Partnership has added another comment to my original post on Omar -v- Birmingham CC to the effect that funding may be forthcoming for a House of Lords appeal. Also the key issue, which is whether Councils can rely on s.193(5) - suitability - rather than s.193(7) - suitability and reasonable to accept - when discharging duty on refusal of an offer of accommodation, may well come up in other cases headed to the Court of Appeal.
Hopefully, a resolution will be achieved soon, as Omar -v- Birmingham was not at all clear in its suggestions.

A quick update on this case; after (just seven revisions!) the petition for leave to the Lords was filed with the Judicial Office within the deadline, presented on 1 April 2008 and has now been referred to an Appeal Committee. Now we are simply waiting.
Hopefully there will be news soon. Thanks very much for keeping us informed, Craig.