Housing Essay: A fairy tale of two south London councils – one has 700 empty homes, the other has filled 640 empty homes in less than two years

Once upon a time there were two Labour-controlled councils in south London.

Both faced huge financial problems because of the collapse of their own house building companies, formed in politically-instigated moves because the wicked Conservative government would not remove a Government cap on borrowing to build council housing. 

Eventually the Government changed their minds and the housing borrowing cap was removed. But by then both councils had spent millions – and millions – on their respective companies.

Both companies failed, leaving both councils with massive debts.
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The first council are Lambeth which set up their ‘Homes for Lambeth’ company with initial plans to demolish six estates across the borough so they could build new housing – including tower blocks.
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Lambeth council currently have 700 empty homes but that isn’t stopping them from trying to evict all the Homes for Lambeth tenants – 163 HOUSEHOLDS with up to an estimated 400 PEOPLE – living on the six estates they want to demolish (or not as the case may be.)
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Which will obviously add to the housing waiting list even more (but Lambeth Labour councillors don’t appear to have realised this.)
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The six estates were – and still are: Central Hill, Crystal Palace;
Cressingham Gardens near Brockwell park on the Herne Hill / Tulse Hill borders;
Fenwick near Clapham Common tube station;
Knights Walk, Kennington;
South Lambeth; and
Westbury, Wandsworth Road.
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One Homes for Lambeth couple facing eviction live on the Fenwick estate close to Clapham Common tube station. They pay £1,500 per month for an unfurnished apartment, having moved in from a “very small” one bedroom place in Streatham
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“We never thought we would be facing eviction especially as we’ve only just moved and it had been implied when we were signing the contract that we would be able to renew” they told News From Crystal Palace.
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“We love the estate and the area and we would hate to have to leave but we can’t afford anywhere else.”
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The couple’s story – and those of other HfL tenants – have been widely reported in newspaper media over the past few months.
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What Lambeth council have also been doing is buying back flats on the six estates acquired under controversial Thatcherite ‘right to buy’ legislation. (And later legislation).
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One of the people living on Central Hill estate in Crystal Palace during this time was former Lambeth Green party Cllr Pete Elliott who rented a private flat  The owner sold the home back to Lambeth council and Pete had to move out. He  wasn’t offered a new home. The home he left has now been empty for more than a year.
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Pete is one of two former Lambeth opposition councillors who have – separately – called for a public inquiry into Homes for Lambeth.
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“What I really want to see is a genuine reset – pause all activities on the six regeneration estates and Denby Court (Lambeth Walk SE11), carry out a full inquiry as knee jerk decisions are still being made with zero thought going into them” says Pete Elliott.
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“While the inquiry is going on, costed appraisals for a deep refurbishment/retrofit should be carried out on all estates so that we can implement some meaningful options around sustainable solutions that have the backing of residents.
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“The regeneration directorate and Homes for Lambeth have been operating a revolving door of multiple highly paid executives and has been lurching from one priority to another for the last 10 years.
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“It has utterly failed the people of Lambeth who desperately need housing they can afford which is warm, secure and efficient housing, which should be contributing to the council addressing the climate emergency targets including net zero for the borough by 2030.
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“Homes for Lambeth has only cost £30 million in setting up and running costs – so where has the rest of the money gone?.”
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The other former Lambeth councillor calling for a public inquiry is former Conservative opposition leader on Lambeth council Tim Briggs.
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Tim Briggs posted on social media: There needs to be an independent inquiry to find where the HfL money went, whether it disappeared through fraud or negligence, calling former LambethLabour councillors as witnesses.
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Asked for a further comment by News From Crystal Palace Tim Briggs said:
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Call the councillors mentioned in the tweet: Lib Peck, Matthew Bennett, Jack Hopkins, Claire Holland. Councillors who sneered and reviled, and made personal, any criticism by opposition councillors who raised issues with the Homes for Lambeth plan, and used their control of committees and the procedures of committees to shut down criticism and debate, and force through their naive plans.
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News From Crystal Palace also asked Tim Briggs:
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How much information was actually given to opposition councillors?
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“Unless councillors are alleging that council officers misled them, by either withholding information or giving the wrong information, the Labour councillors are either in charge or they are not.
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“They either take responsibility for what they do, or they resign and let someone else take responsibility. “Since they did not resign they were responsible.
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“So let’s have a commission and find out why they made these decisions leading to tens of millions of pounds being spent with nothing to show for it.
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What was your reaction to the Kerslake Review / Homes for Lambeth folding please?
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“The Kerslake Review is a welcome light into the murk of Lambeth housing department, but nothing will change until people stop voting Labour as the Labour councillors set the priorities for running the housing department, and Labour-run Lambeth is the worst rogue landlord in the whole of Lambeth.
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“Homes for Lambeth folding was inevitable. “The business plan never made any sense.
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“For example, it was never clear how the money being used or borrowed was going to be paid back.
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“Labour councillors and former Labour councillors should be held to account publicly and asked why they thought a magic-money-tree business plan made sense, and who is going to pay for their mistake.”
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SO WHERE DID ALL THE MONEY GO?
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As Peoples Audit @PeoplesAudit asked on social media back on January 9th:
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Homes for #Lambeth annual accounts just issued show a loss for the year of £28 million, with cumulative losses now standing at £34 million. While all the politicians and officers responsible have swanned off, members of the public are left to pick up the pieces. Where did all the money go?
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(Figures for the year ending March 2024 awaited – Ed.)

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The second council:

The second council, which had also created its own ‘Homes for Lambeth’-style company, held a budget meeting in February of this year.

The cabinet member responsible for housing told the meeting that since May 2022 a total of 640 ‘voids’ – previously empty homes in the borough – had been occupied by families who had been on the housing waiting list, some of them for as long as 10 years.

“It’s been particularly helpful having tenants work with us on developing a new voids standard” she said.

A review had shown additional households in temporary accommodation. A critical shortage in the number of private landlords had led to an increase in these figures.

With shared accommodation being a national problem, the council aimed to refocus services to prevent homelessness at a much earlier stage, she added.

“At the end of the day we have to remember it’s people we’re talking about.”

The second council are Croydon – no overall control since May 2022 but the councillor responsible for housing quoted above is deputy council leader Lynne Hale, a Conservative.

Which begs this question:

If Conservative councillors can bring 640 COUNCIL homes back to rental standards for tenants in less than two years…

What on earth have Lambeth Labour councillors been doing for the past EIGHTEEN years.?

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Further viewing:
Further reading:

Kwajo’s complaint about Lambeth council to the Housing Regulator – What happens next… (April 19th 2024, this website)

Tackling the housing crisis: Homes for Lambeth explained (Lambeth council’s official Love Lambeth / Loathe Lambeth website November 26th 2015)

Homes for Lambeth ready to provide the homes to help tackle the borough’s housing crisis

(Lambeth council’s official Love Lambeth / Loathe Lambeth website March 7, 2019)

Council’s development company Brick by Brick to build a thousand new and affordable homes Croydon.gov newsroom June 3rd, 2016

etc etc etc. Meanwhile….

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