Lambeth (Parliament politics magazine) – Lambeth Council faces a high court challenge over eviction claims linked to estate regeneration and leasing properties under Assured Shorthold Tenancies.
Lambeth Council is accused of breaking the law by using its subsidiary, Homes for Lambeth (HfL), to rent out Council-owned properties under unstable Assured Shorthold Tenancies (ASTs).
A recent decision by the Council to terminate leases and reclaim vacant possession of properties is expected to cause tenant displacement and housing instability.
The decision by Lambeth Council on October 15, 2024, to return properties leased to HfL to direct Council management is linked to the evictions. Many renters who were first offered ASTs by HfL will now have to look for housing from the Council that is evicting them, according to campaigners.
Lambeth Council established Homes for Lambeth Group Limited (HfL), a wholly owned business with the Council as its sole stakeholder, to oversee its estate regeneration program.
One of HfL’s four companies, Homes for Lambeth Living Ltd. (HfL Living), was created with the intention of functioning as a private-sector landlord and renting out Council-owned residences at market rates.
Lambeth Council stated its intention for HfL to generate a profit by managing private rental properties in its 2018 business plan.
According to the document: “There are also other opportunities such as developing a stock of homes for private rent, with long-term tenancies and rent stability, improving the quality and security of the private sector.”
In this case, HfL awarded the claimant an assured tenancy in 2019, which is currently being terminated in light of the Council’s intention to dissolve HfL.
Lambeth Council’s ability to rent out Council-owned properties in the private rental sector under ASTs has been challenged by the Judicial Review on the grounds that it is against housing regulations.
What is the background of the legal challenge faced by Lambeth Council?
The lawsuit asserted that the council acted contrary to the Localism Act 2011 by engaging HfL for private rental, seen as an inappropriate use of property.
The councils should ensure decisions are made accountable and transparent under the provisions of the Localism Act of 2011. The acts of Lambeth Council through HfL, according to critics, do not adhere to these guidelines.
Although HfL was founded to build new homes, it has also rented out private sector real estate.
The Council is charged with:
•Not treating the claimant as a secure tenant, which is necessary for properties controlled by the Council, but rather as an AST tenant.
•Ignoring the claimant’s tenancy’s security, which would give them more protection against eviction.
Lambeth Council disassociates itself from direct responsibility by asserting that HfL Living is the claimant’s landlord, even though it is the only shareholder of HfL and has decision-making authority over it.
Under this arrangement tenants, including the claimant face potential “no-fault” evictions under Section 21 of the Housing Act.
Following a 2022 Kerslake Review that condemned the Council’s management of redevelopment initiatives, the Council decided to retake control of HfL buildings.
What was the response of tenants on the legal challenge on Lambeth Council?
Protesters claim that the Council’s decision to abandon HfL and pursue vacant possession was driven more by financial and political pressure than by a sincere desire to build homes for the poor.
Both Lambeth’s redevelopment plan and its legal right to utilise HfL as a tool for housing stock management may be significantly impacted by the outcome of this judicial review.
According to Lambeth Council, these houses will be converted for people who have “the most urgent housing need.”
This justification, however, ignores the fact that the Council will be directly contributing to the housing problem it claims to alleviate by evicting HfL households.
Families with children, pregnant women, people with disabilities, dependents, and carers are among these tenants; many of them have strong ties to their communities.
According to the Council, HfL tenants can easily locate homes elsewhere because they are private renters. However, this presumption is not at all true.
Since HfL buildings currently offer the cheapest private renting accommodation in the borough, most people cannot afford to move within Lambeth.
Furthermore, one of the main causes of homelessness in England is the termination of a privately rented lease.
The potential eviction of tenants highlights the borough’s housing challenges, as many counil owned properties on the 5 affected estates have reportedly been unoccupied for years.
One HfL tenant shared their frustration saying: “None of us were informed we were renting from the Council, nor that Lambeth viewed this as a short-term solution. In fact, we specifically asked and were reassured we could stay long-term.
This decision feels hypocritical — it completely contradicts Labour’s promise to end SeAfter considering the resident’s claims, a High Court judge will determine whether to hold a full hearing.”
After considering the resident’s claims, a High Court judge will determine whether to hold a full hearing.
Lambeth council is required to respond to the Judicial review claim by February 5, 2025, as part of ongoing legal proceedings