Lambeth Council to sell off housing assets as pressure mounts over spiralling £40m HRA crisis

Lambeth Council has confirmed plans to sell off 20 housing assets, including five empty homes and 15 non-residential sites, in a move designed to plug gaps in its troubled Housing Revenue Account (HRA).

The Council expects to raise £13.7 million from the sales – but critics are warning that the strategy risks stripping local estates of vital amenities while failing to address the roots of the crisis.

The asset disposal programme is part of a sweeping five-year Housing Asset Management Framework (AMF).

The framework sets out how the Council intends to manage and invest in its 23,600 socially rented homes and 10,000 leasehold properties between now and 2030 – despite facing what it calls “unprecedented financial challenges”.

At the heart of the crisis is the council’s HRA – a legally ring-fenced pot of money used to manage and maintain council housing stock.

A series of recent reports, including by Brixton Buzz earlier this year, have revealed deep holes in the account’s long-term viability.

In January, we reported on a £40m budget shortfall in the HRA – a hole that only widened after the government’s 2016 rent freeze and the 2023 cap on rent increases to 7%.

To stay afloat, Lambeth secured £40 million in exceptional financial support from the government – essentially an emergency debt deal.

The Council now says it needs to borrow a further £50 million over the next five years just to keep essential repairs and maintenance on track.

Pressure on the Council intensified earlier this year when Brixton Buzz reported that more than £20.8 million in legal bills had been paid directly from the HRA, including an eye-watering £13.6 million to a single firm of solicitors.

Critics argue that such expenditure falls outside the intended scope of the ring-fenced account, which is supposed to be used for repairs, maintenance, and investment in housing stock – not legal defence.

Meanwhile, the cost of running sheltered housing schemes for older residents has also risen sharply, while the backlog of disrepair claims continues to mount.

The new AMF seeks to manage this turmoil with a set of investment priorities – putting building safety, statutory compliance, and essential services at the top.

But the report also introduces a formal disposal policy, allowing the Council to sell off HRA-owned land and property where a “clear business case” can be made.

Under the policy, void properties and assets such as garages, sheds, and drying areas can now be sold – with proceeds going back into the HRA to offset borrowing or reinvest in existing stock.

The first 20 assets marked for disposal are expected to bring in £13.7 million. More could follow.

Housing campaigners fear that the new disposal policy could result in a piecemeal fire sale of public land, with community assets lost forever and few new homes built in return.

The report admits that many Lambeth estates suffer from ageing infrastructure, deteriorating exteriors, and outdated heating and electrical systems – and that the Council lacks the resources to fix it all.

Some non-residential disposals are expected to be contentious. Thirteen of the assets are classed as amenities, meaning the Council is legally required to consult residents before selling. Equalities Impact Assessments (EIAs) will also be carried out.

The Council insists its “preference is to retain all assets”, but notes that disposal is now necessary “where there is a strong business case to do so”.

The report also highlights rising costs linked to building safety regulations introduced post-Grenfell.

Lambeth estimates it will spend £76 million by 2028 to meet new fire and structural safety rules – funding that central government has so far failed to provide.

More than 99% of Council-managed homes now have up-to-date fire safety assessments and gas checks, but this has added huge pressure to an already stretched budget.

While the Council says the new AMF is about “making Lambeth neighbourhoods fit for the future”, critics argue it’s a plan driven less by long-term vision and more by survival.

For some, Lambeth’s housing strategy looks less like a bold new vision – and more like a fire sale dressed as future planning.

Assets Approved for Disposal by Lambeth Council

Estimated total value: £13.7 million

Land / Non-residential Assets (Garages, Car Parks, etc.)

Residential Void Properties (Street Properties)