Lambeth council is taking back homes that it previously rented in the private sector to make them available for homeless families.
It said this move is part of “a targeted approach to make the best use of existing properties and deliver as much affordable housing as possible for those with the most urgent needs”.
The council’s decision will affect 163 homes on six estates that were let to private tenants by Homes For Lambeth (HfL), the wholly owned company it set up to create new homes, but which it is now taking back into the council.
The homes will be used as emergency accommodation for homeless families.
So far, more than 60 homes have been returned to the council and are being prepared for letting. Nine homes have already been relet to homeless families, the council said.
Existing private tenants will receive help from the council when their leases run out.
A report agreed by the council cabinet earlier this month says that, in a few cases, the council may wish to regain possession of a property before the lease expires. The council acknowledges that, in some instances, subtenants may refuse to leave. In such cases, HfL will use “legislative powers and court procedures as necessary”.
The long-term future of Cressingham Gardens and other estates that the council has said it wants to demolish and redevelop is not referenced in the report.
The council says the borough is facing an unprecedented housing crisis with a serious shortage of affordable homes.
There are 40,000 people on the borough’s housing waiting list, and 4,700 homeless families currently living in temporary accommodation, often hotels and bedsits.
With the council’s finances in a parlous state after many years of cuts and austerity, increasing homelessness rates and costs for temporary accommodation are becoming crippling.
Expenditure on temporary accommodation by London councils grew by 40% in 2023 to a “staggering” £90m a month, the council said, adding that its own homelessness figures are among the most challenging in the capital.
The council said it is committed to exploring all options available to deliver more affordable homes that residents desperately need.
Alongside its new affordable homes programme, it is identifying existing empty properties in the borough that can be used as affordable housing.
“We are committed to doing all we can to tackle the housing crisis,” said councillor Danny Adilypour, deputy leader of the council and cabinet member for housing, investment and new homes.
“The supply of affordable housing for vulnerable and homeless families is under huge pressure.
“There has been a national failure over the past 14 years to build the new homes we need, both for private ownership and social housing.
“Rents and property prices in Lambeth and across inner London are sky-high.
“As a council, we are determined to do all we can to address these issues, through measures like our new homes programme to deliver a minimum of 500 new affordable homes by 2030 and identifying all the empty homes across the borough that can be used to house our most vulnerable residents currently living in temporary accommodation.
“Bringing these privately rented homes back into use as council accommodation will deliver much needed homes as quickly as possible for our most vulnerable residents in Lambeth.”
The council said it recognises the upheaval the plans will cause for its current private sector tenants. It said they have been informed of the proposal and will be provided with assistance by the council to support them in moving to a new home, in line with its statutory duties.
HfL served 10 possession notices early this year to private tenants. Of these, six were due to rent arrears, and one for health and safety reasons.
The remaining three were “section 21” notices, which allow landlords to repossess property at will. The council said these were served “prematurely” due to tenancies ending and expired on 1 August without being enforced. It said no further notices to leave will be issued due to a tenancy ending until its plans are approved, and not before further communication with the private tenants.
The council says it is also accelerating work to bring empty council housing in the borough up to lettable standards as quickly as possible.
It has so far identified 381 empty properties which are being repaired, with 133 properties now ready to be relet.
The council is developing an empty homes action plan to consolidate work in this area.
“The scale of the housing crisis, seen right across London, means the council is committed to using all steps necessary to make more homes available and we are taking proactive steps to tackle this issue,” it said.
Other measures could include council tax on long-term empty properties in the private sector.
These concerted efforts are part of an improved housing strategy which sets out how the council aims to create more affordable homes, improve housing repairs, and create healthy, safe neighbourhoods, the council said.