Lambeth set to sell off family silver to help repay £40m housing loan amid public opposition

Lambeth Council is preparing to sell off a tranche of council-owned garage sites and car parks to help repay a £40 million loan from central government taken out last year to plug a black hole in its Housing Revenue Account (HRA).

The move comes even though residents who responded to the consultation overwhelmingly opposed the disposals.

The proposed sales are set out in an officer decision report that authorises the disposal of 15 HRA assets — including twelve garage sites, two car parks and one parcel of land — via public auction and informal tender.

While the report states the intention to generate capital receipts to support the HRA, no expected sale prices have been published, with the details withheld on the grounds of commercial sensitivity.

The asset list earmarked for sale includes:

Garage sites

Alwyne Way (Larkhall)

Astbury Crescent (Streatham Hill)

Harvist Road (Herne Hill)

Hillside Road (Herne Hill)

Miles Road (Clapham Town)

Muriel Street (Streatham Hill)

Ness Road (Tulse Hill)

Peabody Estate (Stockwell)

Pinfold Lane (Streatham Hill)

Porson Road (Streatham Hill)

Roupell Road (Stockwell)

West Square (Brixton Windrush)

Car parks

Denmark Road Car Park (Vassal)

Masbro Road Car Park (Bishops)

Land parcel

Brockwell Rise (Herne Hill)

The sales are explicitly linked to the Exceptional Financial Support (EFS) loan of £40 million that Lambeth obtained from government in January 2025 to address mounting HRA pressures, including spiralling temporary accommodation costs, repairs backlogs and low reserves.

At the time, the council said the funding was essential to keep its housing service solvent and avoid extreme measures such as a Section 114 notice.

The loan must be repaid with interest, and capital receipts from asset disposals are one of the few levers left available to the council to meet that obligation.

Residents and tenants were consulted on the disposals between October and December 2025. The response rate was very low — under one per cent of residents took part — but of those who did respond, 69 per cent opposed the proposed sales.

Among garage users, participation was higher and opposition stronger: more than half engaged in the consultation, and 86 per cent opposed the proposals.

Some of the opposition centred on the impact on mobility-impaired residents. The report notes that 18 per cent of garage users identify as having a disability or long-term illness.

Several consultation responses came from Blue Badge holders who said they rely on nearby parking for practical needs such as Motability vehicles, medical appointments and day-to-day access.

Lambeth’s response to these concerns, as recorded in the report, is that residents will be “signposted to alternative parking options”, rather than that replacement spaces will be provided.

The council acknowledges that selling assets that provide local amenity and convenience will be unpopular, but the financial context is stark.

The HRA has been running at a deficit, has low reserves, and was forced to secure a government loan last year amid a deepening housing budget crisis.

The sale of garage and car park land is presented as necessary rather than optional, a source of capital receipts that helps repay the bailout and reduce the risk of deeper cuts to frontline housing services.

The report acknowledges the possibility of legal challenge, warning of the risk of judicial review on grounds of inadequate consultation — though officers argue that proper procedures were followed.

For many residents, the proposed disposals illustrate the extent to which Lambeth’s housing finances remain under extreme pressure.

What was once seen as community infrastructure — local garages used by residents, nearby parking that supports independence for older or disabled people — is now being monetised to help balance the books in a housing account that has been running in the red for years.

As public consultations give way to commercial auctions and tender processes, the question for many in the borough will be whether the financial gains from selling off these sites can ever fully compensate for the community utility they once provided.