Lambeth council has asked the government to reform laws governing tenant management organisations (TMOs) following serious concern about the Loughborough Estate.
The former council estate is run by a TMO, which receives several million a year from the council to do so.
Earlier this year, the news website London Centric reported that tenants of the estate had asked Lambeth council to overthrow the “corrupt” management board of the TMO.
It said the char of the board, Peter Shorinwa, had renamed one of the estate’s community halls after himself, flown overseas on “factfinding” missions, and overseen the heavy expenditure on “gifts” for residents, including cheap cufflinks and bags embossed with the estate management company’s initials.
London Centric said the board had spent £46,390 on an overseas trip for board members “during which time they considered a number of issues” affecting the estate. It also allocated a budget £374,141 for “gifts to residents”.
In a brochure sent to residents, Shorinwa alleged that Lambeth council attempted to have him murdered as part a battle for control of the estate.
Residents voted to abolish the management board in February 2025 and sought help from the council.
A letter from the council to Steve Reed, secretary of state for housing, communities and local government, and a former leader of Lambeth council, said concern over the TMO had prompted a detailed review that identified failings by Loughborough Estate management board (LEMB) in its financial management, governance and procurement.
Lambeth council has referred LEMB to the Financial Conduct Authority over potential misuse of funds.
Danny Adilypour, deputy leader and Lambeth council cabinet member for housing, investment and new homes, said the LEMB case had highlighted gaps in councils’ powers to act on behalf of tenants whose TMOs were underperforming.
Adilypour said the current legal framework “binds the hands of local authorities to take decisive action against poorly operating TMOs”.
The council took action after LEMB sent a letter to residents containing unsubstantiated allegations and attempted to hold its annual general meeting online, contrary to its own rules.
The council said it has intervened to ensure residents can participate fully and safely, even offering the use of council offices and appropriate security measures.
However, Adilypour’s letter argues that the council’s ability to act is“heavily constrained” by current TMO legislation.
He said the terms of the modular management agreement (MMA) for TMOs – published by the government in 2013 – are out of date. An MMA sets out details of the agreement between a local authority and a TMO, including finances and who is responsible for what.
“There are significant changes that need to be made to the MMA to ensure that residents can be confident that their housing management is fit for purpose and so that they are not left to suffer in the same way as residents living on the estate managed by LEMB,” Adilypour told the secretary pf state.
Lambeth council is urging the government to urgently strengthen the regulatory framework for TMOs, including:
- Stronger rules for continuation ballots – where residents vote on whether they want their TMO to continue managing their council housing services – with clear consequences if TMOs do not follow these
- Quicker and more effective ways to take action when TMOs perform poorly
- Powers for councils to end agreements when there are serious contractual breaches
- Powers to step in when a TMO does not follow its own rules
- Limits on how long someone can serve on a TMO committee
- The ability to update the modular management agreement when laws change.
The council said its officers will work with officials at the department for housing, communities and local government to provide details of the legislative and regulatory changes required.
